Michigan Rail Enhancement Grant Program

Purpose: Provide capital grants to improve, expand, and rehabilitate freight rail corridors and facilities in Michigan that deliver immediate, quantifiable public benefits in safety, operational efficiency, accessibility, capacity, and/or condition. Eligibility: Applicants are freight railroads and owners of multi-user transload facilities; applicants must own or control the project property. If the applicant is not a freight railroad, a letter of support from the serving railroad is required. Applicants must propose at least one performance measure to quantify public benefits; exceeding the minimum cash match and inclusion in the State Rail Plan can improve competitiveness. Project eligibility: Eligible costs include fixed assets such as track, ties, bridges, crossings, rail scales on mainline corridors and at rail yards, intermodal facilities, and transload facilities. Movable equipment and/or rolling stock may be considered if plans ensure Michigan-specific use. Ineligible items include design and engineering services, permit fees, and property or right-of-way acquisition. Application process: Complete MDOT Form 3769 (FY 2026 M-REP application) with required attachments (project map, serving railroad support letter if applicable, project plans/drawings, and detailed cost estimate). Email the completed application to Alex Nikoloff at NikoloffA@Michigan.gov by 11:59 PM on 11/17/2025 for FY 2026 consideration. MDOT aims to make selections within 90 days of the deadline; contracts are typically issued about 6 weeks after selection, and projects must be completed within 3 years. Awards are reimbursement-based, with up to a 25 percent advance available at contract signing if collateral is provided.