The first minister has welcomed an admission by the UK government that spending to improve Wales' railways has been at "low levels" in recent years.
Eluned Morgan said the statement, made in a letter from the Transport Secretary Heidi Alexander, was the first time UK ministers had admitted that the Welsh railways were underfunded.
No new money has been announced, but Morgan said talks were taking place on what she hopes would be "significant" investment on new stations.
It follows a long-standing row over the lack of extra funding for Wales from the High Speed 2 (HS2) rail project.
The UK government's Welsh Secretary said the country's rail settlement had not been "good enough", blaming her political rivals for "14 years of underfunding".
But Jo Stevens said the future of Welsh rail could not be derived from HS2 "alone".
Plaid Cymru said the letter did not commit to righting "the wrong" of HS2, while the Welsh Conservatives accused the first minister of accepting "scraps".
A UK government source said UK ministers "cannot fix that inherited injustice" but recognised Wales "has suffered chronic underinvestment".
Because HS2 was designated as an England and Wales project, Wales gets no additional funding as a result despite none of the planned track reaching the country.
Differing figures have been given for how much politicians think Wales is owed from HS2, from £4bn suggested by Plaid and the Welsh government in the past to £350m in the most recent figures from Welsh ministers.
Since they won the 2024 general election, Labour UK ministers have been under pressure from their party counterparts in Cardiff to improve rail funding.
Speaking on The Phone In on BBC Radio Wales, Morgan said money had been "poured" into HS2 which had been classed as a England and Wales project, "even though not one inch of track was laid in Wales".
That was a "fundamental injustice", she said.
"For the first time, the UK government has recognised that we have been underfunded," she said.
Morgan said conversations had "already started" on a "long list of projects" that could be invested in.
Morgan, asked if there would be consequential funding from HS2, suggested there would not.
"It would probably be in the shape of new stations," she said.
In a letter to the Welsh government, UK government Transport Secretary Heidi Alexander and Welsh Secretary Jo Stevens said they recognised "that railways in Wales have seen low levels of enhancement spending in recent years, particularly in the context of major investments such as HS2".
In Welsh Affairs Select Committee, Welsh Secretary Jo Stevens said Wales' rail settlement has not been "good enough" for the last 14 years of the last Conservative-led governments.
But she said she could not fix the situation "overnight".
She said: "I'll be perfectly frank on the first part of your question, which is that it's not good enough, and that is a direct consequence I'm afraid of the last 14 years of underfunding by prior governments, and that is why I am determined to change that. I can't change the past. I hope that that I can change the future."
Ms Stevens said she had been working with the Welsh Government's transport minister Ken Skates, and the Department for Transport in Westminster, and had "agreed a direction of travel" which she hoped would "deliver new rail investment for Wales".
When asked by Plaid Cymru's Ben Lake if HS2 should be reclassified as an England-only infrastructure project, Ms Stevens said: "I want us to have a sustainable pot of rail infrastructure funding for Wales, and I think we need to stop deriving the future of rail in Wales from HS2 alone."
The letter praised proposals from three transport reviews, focused on the north and south Wales main lines, and improvements to the Wrexham to Liverpool lines, saying they "have the ability to drive economic growth".
In south east Wales, a commission had proposed five new stations – Cardiff East, Newport West, Somerton, Llanwern and Magor & Undy – at an estimated cost of £335m, plus £50m to improve the mainline itself.
A similar commission in north Wales had proposed investments to allow more services along the region's mainline.
But the letter stated that decisions on extra cash will be up to the Treasury, saying that the Chancellor, Rachel Reeves, "has been clear on the position of the public finances bequeathed by the last government".
The letter suggested the proposals will inform work with the Treasury ahead of the spending review, due in the spring.
A UK government source added: "We recognise that Wales has suffered chronic underinvestment under successive Conservative governments, including through HS2. We cannot fix that inherited injustice.
"But we can and will fight for a funded pipeline of future rail projects across Wales for the first time in decades."
Plaid Cymru's Llyr Gruffydd said: "The first minister has clearly been reading a very different letter to what we've read.
"It doesn't reference the unfairness of HS2 nor does it say Labour will right the wrong of the full £4bn consequential owed to Wales. Eluned Morgan is conflating two very different issues.
"If Labour were serious about giving Wales fair play, then they would give us the full £4bn we are owed, just as they said they would."
Welsh Conservatives' Peter Fox said: "Before the election, the Welsh Labour government was vocal in calling for fair HS2 consequentials to come to Wales. Yet now, with a Labour Government in Westminster, the first minister seems all too willing to accept whatever scraps her counterparts in London throw our way.
"We were promised two governments working in partnership to deliver what is best for Wales. Instead, we've had broken promise after broken promise."
By Gareth Lewis, political editor, BBC Wales News
There is political risk in this for the first minister.
HS2 has become symbolic as much as an economic issue in Welsh politics, but there are no guarantees in anything we have heard today.
This is a proposal, not a concrete commitment. There is the hope for significant rail investment, but we do not know how much, and in any case spending decisions are in the hands of the Chancellor, Rachel Reeves.
The Welsh government will be hoping that any funding is at least equal, preferably more, to what they wanted from HS2 – £350m.
Political opponents are calling for more, and would like new investment on top of consequential HS2 funding.
And given that the first minister – in her own words – has pushed Keir Starmer so much on HS2 funding that he is "sick" of it, will voters feel she has done enough and be on board with the plans?
Copyright 2025 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.
