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11/18/2025
The Minnesota Department of Transportation (MnDOT) has made $4 million in grant funding available for projects that improve freight-rail service and support economic development.
Applications are due Jan. 9, 2026, MnDOT officials said in a press release.
Minnesota railroads, local governments and rail shippers are eligible to apply for grants worth up to $1 million. Examples of qualifying projects include the construction or extension of railroad tracks, upgrades to or replacements of bridges, and other capital investments on fixed assets such as loading facilities.
Funding cannot be used for regular maintenance programs, incomplete or phased projects, or engineering, design and right-of-way acquisition costs, MnDOT officials said.
The funding comes from the 2025 Minnesota Rail Service Improvement (MRSI) program. It includes $1 million in new bond funding approved during the 2025 legislative session and $3 million in bond funding reallocated from previous project.
A MnDOT project selection team will review applications and notify recipients in late March or early April 2026, MnDOT officials said.
Additional information about the MRSI program is available on the MnDOT website.