$4 million available for railroads, rail shippers, cities, counties
ST. PAUL, Minn. – The Minnesota Department of Transportation is encouraging railroads, rail shippers, cities and counties to apply for up to $4 million in state grant funding for projects that enhance freight rail service across the state. The grants aim to support initiatives that strengthen local or statewide economic development. Funding is available through the 2025 Minnesota Rail Service Improvement (MRSI) Program. Applications are due by 5 p.m. on Jan. 9, 2026.
Funding includes $1 million in new bond funding approved during the 2025 legislative session and $3 million in bond funding reallocated from previous projects.
“The MRSI program plays a vital role in strengthening Minnesota’s freight transportation system by supporting impactful rail infrastructure projects,” said Meredith Alt, MRSI program manager. “This latest round of funding will help drive economic development across the state through projects that improve freight rail access for Minnesota businesses and communities.”
Examples of projects eligible for MRSI state funding include railroad tracks, roadbeds, turnouts, bridges and fixed loading/unloading facilities buildings. Funding cannot be used for regular or recurring maintenance activities, incomplete or phased projects, or engineering, design and right of way acquisition costs.
MRSI webinar with Q&A session scheduled Wednesday, Dec. 3
Those interested in applying for MRSI funding are invited to join MnDOT and others for an informational webinar with Q&A session on Wednesday, Dec. 3, from 1 to 2 p.m. Join here via Microsoft Teams.
Grant applications, MRSI program details and more information about the webinar are available at mndot.gov/ofrw/railroad/mrsi-grant.html.
A MnDOT project selection team will review and score eligible applications. Award recipients will be notified by early April 2026.
The MRSI program has administered more than $70 million in loans and grants for capital improvement projects since it was established in 1976 to strengthen the state’s shipping economy. The program was given authority to issue grants for freight rail service improvements that support economic development in 2017.
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