MnDOT Seeking Applicants for Freight Rail Project Funding

MnDOT

ST. PAUL, Minn. - The Minnesota Department of Transportation announced it is encouraging applicants to apply for up to $4 million in state grant funding.

The funding is for projects that “enhance freight rail service across the state” and subsequently strengthen the economy, says MnDOT. $1 million in funding was approved during the 2025 legislative session, and the remaining $3 million in funding was reallocated from other projects.

MnDOT gave examples of eligible projects for this funding: railroad tracks, turnouts, bridges, roadbeds, and loading and unloading facilities. According to the announcement, this funding cannot be used for regular maintenance programs, projects that are incomplete, or any engineering/design/right-of-way acquisition costs.

Those interested can apply through the 2025 Minnesota Rail Service Improvement (MRSI) Program. The deadline to apply is January 9, 2026 at 5:00 p.m.

A team from MnDOT will review and assess applications with award recipients being notified by early April 2026.

MRSI program manager Meredith Alt said, “The MRSI program plays a vital role in strengthening Minnesota’s freight transportation system by supporting impactful rail infrastructure projects. . . 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.”

On December 3 from 1:00 p.m. to 2:00 p.m., MnDOT will host a webinar with a Q&A session to provide more details and answer questions.