Kentucky awards $1.8M in latest round of rail infrastructure grants

Kentucky Gov. Andy Beshear announced on June 11 that the state has awarded an additional $1.8 million in grants for five rail-infrastructure projects through the Kentucky Industrial Access and Safety Improvement (KIASI) program.

"Our railways play a critical role in Kentucky's economy," Beshear said in a press release. "These investments will not only make railways safer, they'll help provide opportunities and good-paying jobs for our people."

This is the sixth time that KIASI funds have been issued since the program was first announced in 2024, for a total of $17.3 million. The previous round of funding was announced in April 2026.

The newest grants will go toward updating safety monitoring systems, constructing a new rail yard and rehabilitating and reactivating thousands of feet of track.

One of the five recipients is Bowling Green's Inter-Modal Transportation Authority (ITA), which will receive $464,835 to rehabilitate 6,100 feet of existing rail spur and install new flashing-light signals at the Commonwealth Boulevard grade crossing. 

“This KIASI grant is a significant investment in the reliability and safety of our regional freight infrastructure, critical for our advanced manufacturing base,” said Meredith Wilson, ITA interim president and CEO, in a press release. “Projects like this strengthen our supply chain connections, support existing industry and signal to prospective companies that Bowling Green is a community that takes its infrastructure seriously.” 

The following four projects also received funding: 

• Greenup-Boyd County Riverport Authority, $52,025 to rehabilitate approximately 800 feet of track;
• Paducah and Louisville Railway Inc., $399,461 to modernize five hot-box-detector installations and add a sixth;
• Progress Rail Services Corp., $470,000 to reactivate 7,895 feet of track; and
• Tennessee Autotrack LLC, $470,889 for the construction of a new rail yard in Simpson County, connecting to a CSX mainline to expand rail-car repair services

Grant applications are evaluated by Kentucky Transportation Cabinet and the Kentucky Cabinet for Economic Development. Applications are prioritized based on criteria including project's likelihood to provide enhancements to existing rail lines, create jobs and capital investments, and retain existing or attract new rail-served industries. Project readiness is also considered. Grant recipients contribute a minimum 50% match for project costs.