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Federal grants boost grain rail network

$2.3 billion program funds track upgrades across farm country to move crops faster and safer.

Close-up view of railroad tracks with wooden ties and metal rails converging toward the horizon

The U.S. Department of Transportation announced it will invest $2.3 billion in rail infrastructure projects across 45 states, with a significant portion going to improve grain transportation in America’s agricultural heartland.

The funding, distributed through the Federal Railroad Administration’s Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program, selected 105 projects from a record 368 applications requesting more than $12 billion. Over 2,000 miles of track will see improvements, with rural areas receiving $1.77 billion of the total funding.

“Under President Trump, USDOT is investing in rail projects that will unleash local economies and deliver real safety upgrades,” said Transportation Secretary Sean P. Duffy. “From improving shortline infrastructure and port connections so critical products can get where they need to go faster to enhancing fencing along trespassing hotspots, this package will tangibly improve lives for millions of Americans.”

Corn Belt receives major investment

Illinois received one of the largest grain-focused allocations with $42.5 million for the Decatur and Eastern Illinois Railroad’s Corn Belt Safety and Efficiency Project. The funding will rehabilitate and improve rail infrastructure in eastern Illinois and western Indiana, replacing approximately 30 miles of rail, upgrading ties, resurfacing track, and rehabilitating multiple yards.

The project will also rehabilitate the steel rail bridge over the Wabash River and resurface 29 at-grade crossings, resulting in increased speeds and reduced maintenance costs in what officials call “the heart of the Corn Belt.”

The Toledo, Peoria & Western Railway Corporation received $19.7 million for its Supporting Agriculture in the American Heartland project. The work will replace mainline track and turnouts in Tazewell and Iroquois counties in Illinois and Newton and White counties in Indiana, along with resurfacing ten at-grade crossings and installing approximately five wayside equipment defect detectors.

Great Plains infrastructure overhaul

The Kyle Railroad Company secured $49.5 million for the Unleashing the American Heartland Rail Upgrade Project, which will install 115-pound continuous welded rail on approximately 56 miles of track in Kansas and Colorado. The company will contribute a 52% non-federal cost share, with additional funding from the Kansas Department of Transportation and the Amber Wave company.

In Minnesota, the Twin Cities & Western Railroad Company received $22 million for a project that includes procuring 200 new rail grain cars and improving short-line infrastructure in Central Minnesota. The project will also replace turnouts and switches to accommodate the new, heavier cars.

North Dakota’s Red River Valley & Western Railroad Company secured $23.6 million to replace approximately 26 miles of rail with continuous welded rail and build a new siding. The project will provide additional track capacity, reducing the risk of derailment, congestion, and delays for grain shipments moving through the region.

Upper Midwest and Pacific Northwest upgrades

Iowa Interstate Railroad received $48.1 million for track rehabilitation and bridge replacement spanning Iowa City, Des Moines, and Davenport, Iowa, and Bureau, La Salle, and Henry counties in Illinois. The project will rehabilitate approximately 18 miles of track by replacing rail, ties, and a bridge, bringing the line up to FRA Class 3 track standards.

South Dakota’s Ellis & Eastern Company received $26 million for track rehabilitation and improvement in southeastern South Dakota and southwestern Minnesota. The work includes constructing new siding capacity, replacing rail and ties, and completing related crossing surface and turnout work across approximately 44 miles of track.

Washington State secured $22.5 million for its Rural Rail Rehabilitation Phase IV project, which officials titled “Protecting Multigenerational Farming.” The project will rehabilitate approximately 19 miles of track from Wilbur to Hanson, replacing rail, ties, ballast, and turnouts while upgrading at-grade crossings. The state will contribute a 50% non-federal cost share with support from multiple grain growers and cooperatives.

Eastern agricultural corridors

Delaware’s Delmarva Central Railroad Company received $10.1 million for its Freight and Agriculture Rail Modernization Project (FARM). The funding will support rehabilitation and improvement of approximately 9.5 miles of track between Harrington and Bridgeville, installing continuous welded rail, placing ballast, and surfacing the track.

In Idaho, the Eastern Idaho Railroad secured $34.4 million for its Southern Idaho Short Line Modernization Project, specifically designed to support growth in agriculture commodity transport. The project will replace approximately 44 miles of ties and 30 miles of rail in Jerome and Minidoka counties.

Enabling heavier loads

Most of the grain-focused projects include upgrades to enable 286,000-pound railcar capacity, the industry standard for modern freight operations. This increased capacity allows railroads to move more grain per car, reducing transportation costs and improving efficiency for farmers and agricultural shippers.

FRA Administrator David Fink said the funds “will provide shortline railroads across the country with the resources they need to make long overdue improvements to their day-to-day operations.” He added that “these thoughtful, targeted investments will reduce congestion and improve operations.”

The selected projects will receive over $1.9 billion in additional non-federal funding from state, local, and private partners to complete the work.

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