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MDOT provides grants to railroads and owners of multi-user transload facilities to improve public safety, operational efficiency, system accessibility, system capacity and/or system condition. Grants cover up to 70 percent of eligible project costs up to $5 million.
Learn more about the Michigan Rail Enhancement Grant Program.
Eligible applicants include freight railroads and owners of multi-user transload facilities. A Letter of Support from the serving railroad must be included with the application if the applicant is not a freight railroad.
Yes, provided the transload facility will serve multiple users at project completion.
Fixed assets such as track, ties, bridges, crossings, rail scales on mainline corridors and at rail yards, intermodal facilities, and transload facilities are among the eligible project types.
Movable equipment and/or rolling stock (new or used) may be considered if plans are submitted that adequately address proof of Michigan-specific use.
Yes. For fiscal year 2026, the call opens on October 7, 2025, and closes on November 17, 2025. All applications must be received by 11:59 p.m. on November 17, 2025, to be considered eligible for FY 2026 funding.
MDOT’s Fiscal Year 2026 budget included boilerplate language that directs MDOT to use $20M of its rail appropriations specifically for freight rail projects. Some of this requirement may be met through other efforts, like the Freight Economic Development Program.
Yes. Grants are capped at 70% of the final eligible project costs up to a maximum of $5 million.
No.
Yes, matching funds equal to at least 30% of the project costs are required. Providing more than 30% match will be viewed favorably.
No, match is cash-only.
Yes, but the total grant amount cannot exceed $5 million per applicant, per project solicitation and/or MDOT fiscal year. A holding company with multiple railroads is considered an applicant and is subject to the $5 million maximum grant request.
The cap applies to applicants so it would not count against the railroad’s cap. A Letter of Support would be required from the serving railroad for what would essentially be a competing application.
Yes, you may submit applications that in total request more than $5 million in MDOT contribution, but MDOT will select only the most competitive project(s) that don’t exceed a combined $5 million.
Yes. The documents mentioned above are REQUIRED but other documents can also be attached.
Yes, additional documents can be attached if more space is needed. However, please complete all fields of the application rather than only referencing the attachments.
Yes, but applications will still only be evaluated on how well they align with the goals of the program; your ranking will not affect how the application is scored.
If specific commodities or individual companies cannot be listed because of privacy or safety concerns, indicate the industries that would benefit from the rail project. Refer to the MDOT Rail Commodity Flow Map for how MDOT publicly discloses this information.
Yes. Your completed application and all accompanying documents are subject to FOIA requests.
Yes, track materials are subject to Michigan’s sales tax and these costs should be incorporated into your project budget.
As these are public funds, applicants are required to identify project-related benefits that extend beyond the company/applicant and into the community and state. Additionally, applicants are encouraged to address why public funds are being sought to complete the project. Examples of public benefits include:
Performance measures define how the proposed public benefit will be evaluated. Examples could include:
Reviewers include staff members from the MDOT Office of Rail and the MDOT Bureau of Transportation Planning.
Applications are evaluated by how well the proposed project improves public safety, operational efficiency, system accessibility, system capacity and/or system condition to better serve customers, communities and/or the State of Michigan. Supplemental measures that meaningfully capture additional public benefits will also be viewed favorably.
Other evaluation factors include overmatch (more than the required 30%), the project’s inclusion in the state’s long-range transportation plan (MM2045), the proposed public benefits and performance measures, and the overall quality and completeness of the application and supporting documents.
Funding decisions will be made within 90 days of the application deadline.
It typically takes 6-8 weeks to get a contract in place.
A standard M-REP contract will be provided for all selected projects and not individually negotiated. Key terms are listed below. A sample contract will be provided to applicants with selected projects. A project contract will be provided through MDOT’s digital signature system to the authorized signatory.
MDOT uses a cloud-based digital signature software called OneSpan for signing contracts and contract amendments. MDOT must have a valid Signature Resolution or Consultant Data and Signature Sheet (MDOT Form 5100J) on file that specifies the officials who are authorized to digitally sign documents at your company.
If you do not have a Certified Signature Resolution or Consultant Data and Signature Sheet on file, then one or the other must be submitted before any contracts can be awarded. The Certified Signature Resolution or Consultant Data and Signature Sheet can be submitted prior to returning the contract or submitted along with the contract.
Yes. MDOT will typically reimburse eligible costs at the completion (and inspection) of the selected project.
If necessary to start a project, a portion of the grant funds can be disbursed when the contract with MDOT is signed. Up-front assistance is limited to 25% of the grant amount, and collateral will be required in those cases. Applicants need to indicate if this assistance is necessary in the application.
We will entertain all collateral proposals, the most common of which are Letters of Credit and UCC-filed material collateral, such as stockpiled rail.
No, letters of credit must come from a bank or other financial institution.
No, the 25 percent payment is the only pre-payment option.
This program, like most MDOT programs, will typically only cover costs that were incurred after a contract is in place.
No, if an applicant’s match is financed, those costs will not be eligible for reimbursement, nor will they count as match.
Projects must be completed within three years from the contract award date.
Work can be self-performed and/or contracted.
Yes. Competitive bidding is required in certain circumstances and Michigan-based companies must be used whenever practicable. Contractors must also abide by the terms and conditions of the MDOT contract.
Yes, in most cases. Selection justification must be provided if the low qualified bidder is not selected. This decision should be made in consultation with the MDOT project manager.
No, depreciation cannot be counted as match.
If the railroad uses its own equipment (newly purchased or already owned) to construct the project, MDOT will reimburse in accordance with Blue Book rental rates for the time in which equipment use is documented for the project.
The grantee is responsible for meeting all applicable environmental requirements. There are no unique environmental requirements related to this funding.
Reporting requirements will be based on the proposed performance measures. Grantees will be required to report their performance measures at least twice: once no later than two years after project completion, and once not later than five years after project completion. In some cases, a baseline measurement will also be required. The reports/measurements must be submitted within 90 days of a mutually determined date that will be established before MDOT makes the grant payment.
