MnDOT Freight Rail Project Grants

The Minnesota Department of Transportation is encouraging railroads, rail shippers, cities and counties to apply for up to $4 million in state grant funding for projects that enhance freight rail service across the state.

The grants aim to support initiatives that strengthen local or statewide economic development. 

Examples of projects eligible for MRSI state funding include railroad tracks, roadbeds, turnouts, bridges and fixed loading/unloading facilities buildings.

Funding is available through the 2025 Minnesota Rail Service Improvement (MRSI) Program.

Applications are due by 5 pm on Jan. 9, 2026.

Those interested in applying for MRSI funding are invited to join MnDOT and others for an informational webinar with Q&A session on Wednesday, Dec. 3, from 1 to 2 pm.

Grant applications, MRSI program details and more information about the webinar are available at mndot.gov/ofrw/railroad/mrsi-grant.html.

Funding includes $1 million in new bond funding approved during the 2025 legislative session and $3 million in bond funding reallocated from previous projects.

A MnDOT project selection team will review and score eligible applications. Award recipients will be notified by early April 2026.