Iowa Approves $6.3MM for Rail Projects
Written by Marybeth Luczak, Executive Editor
The Iowa Transportation Commission has signed off on distributing $6.3 million to six rail infrastructure and related rail development projects.
The projects will be funded under the Railroad Revolving Loan and Grant (RRLG) Program, which is administered by the Office of Rail Transportation at the Iowa Department of Transportation. The program provides financial assistance to rail projects in these three categories:
- Targeted job creation. Projects must provide immediate, direct job opportunities. Loans and grants are available. Grant funding is contingent on job creation and retention commitments by the applicant, and loans can supplement grants if the project cost exceeds available grant funding. A local match is required for both grants and loans.
- Rail network improvement. Projects must support existing rail lines and service or improve industrial access when no direct job creation is involved. Only loans are available in this category. Loans will be offered at 0% for a 10-year term. Loan requests require a 20% matching contribution.
- Rail Port Planning and Development. Grants of up to $100,000 are available for planning studies that enable a community, county or region to make fact-based decisions concerning the location, design or funding requirements for a rail port facility. Study results are expected to help decision-makers evaluate rail development options that support economic growth. Grant requests require a 20% matching contribution.
Following is the list of RRLG projects approved by the Commission and slated to support the creation and retention of 109 jobs within three years of their completion:
Between 2006 and 2017, the RRLG Program has assisted 70 rail projects, awarding $19 million in grants and financing $24 million in loans (download more details below).
