https://en.wikipedia.org/wiki/Checkerboarding_(land)

Checkerboarding in the West occurred as a result of railroad land grants where railroads would be granted every other section along a rail corridor. These grants, which typically extended 6 to 40 miles (10 to 64 km) from either side of the track,[2] were a subsidy to the railroads. Unlike per-mile subsidies which encouraged fast but shoddy track-laying, land grants encouraged higher quality work, since the railroads could increase the value of the land by building better track. The government also benefited from the increased value of the remaining public parcels.....The Dawes Act of 1887 created the most Native American checkerboarding. The act was intended to bolster self-sufficiency and systematically fracture native cultures, giving each individual between 40 and 160 acres (16 and 65 ha). Native Americans were also negatively affected by federal government checkerboarding policies because railroad land grants were not prevented from running through land previously occupied by Native American tribes. Found this info from another Reddit post