The Minnesota Department of Transportation has opened applications for $4 million in freight rail service improvement grants under the Minnesota Rail Service Improvement Program. Applications are due January 9, 2026.
Eligible applicants include railroads, rail shippers, political subdivisions, and federal agencies seeking major improvements to railroad rights of way or related facilities. Grants may fund up to $1 million per project.
Eligible projects include track construction or extensions, bridge upgrades or replacements, and other fixed capital improvements such as loading facilities. Funding cannot support routine maintenance, phased or incomplete projects, or design and right-of-way acquisition costs.
The funding includes $1 million in new bond appropriations from the 2025 special session and $3 million reallocated from prior projects. MnDOT will review applications and expects to select projects in late March or early April 2026.