"The streetcar project moves Charlotte a step closer to building a truly connected transit system that will enable commuters, students and visitors to travel seamlessly in and out of downtown," said U.S. Transportation Secretary Ray LaHood.

The initial 1.5-mile section of the Charlotte Streetcar line will include six stops along an east-west transit corridor that is intended to make it easy for passengers to catch either a local transit bus or board the LYNX light-rail service heading north and south from the Charlotte Transportation Center, where all these services intersect.

The project is funded with $25 million from the Federal Transit Administration's Urban Circulator Grant Program. The total project cost is $37 million, with the city of Charlotte contributing $12 million.