Correct.
Each railroad was given 6400 acres of land, which they could sell to settlers to help populate the route with customers, and each railroad was paid $48,000 per mile of track laid.
However, they had 14 years from the passage of the Pacific Railroad Act of 1862 to complete the job, or they would forfeit ALL the land AND the money.
And in typical Government fashion, the two lines passed each other in Utah because no one was thinking ahead to establish a junction point.
Promontory Point, Utah was selected and the Golden Spike was driven on May 10, 1869. 7 years ahead of schedule.
Remember the old wall poster from the 1970s? A Promontory Point type scene - but at the point where the rails joined, the southernmost rail from one side joined the northernmost rail from the other. I believe the caption was "Thank God It's Friday".