MnDOT Rail Grants: Boosting Minnesota Railway Infrastructure

Introduction

The Minnesota Department of Transportation (MnDOT) is offering $4 million in grant funding for projects aimed at enhancing freight-rail service and stimulating economic growth. Applications for the grants are due January 9, 2026.

Grant Eligibility and Application

Minnesota railroads, local governments, and rail shippers are eligible to apply for grants. Individual grants can be worth up to $1 million. Eligible projects include the construction or extension of railroad tracks, bridge upgrades or replacements, and other capital investments in fixed assets like loading facilities.

Funding Restrictions

The funding cannot be used for routine maintenance programs. Additionally, incomplete or phased projects, as well as costs associated with engineering, design, and right-of-way acquisition, are ineligible for funding.

Funding Source

The funding originates from the 2025 Minnesota Rail Service Improvement (MRSI) program. This includes $1 million in new bond funding approved during the 2025 legislative session and an additional $3 million in bond funding reallocated from earlier projects.

Conclusion

The Minnesota Department of Transportation (MnDOT) is providing $4 million in grants through the 2025 Minnesota Rail Service Improvement (MRSI) program, with applications due by January 9, 2026. The funding is sourced from $1 million in new bonds and $3 million in reallocated bonds.

Company Summary

Minnesota Department of Transportation (MnDOT): A state government agency responsible for transportation infrastructure and services within Minnesota.