Montana Essential Freight Rail Loan Program
Forecasted
Montana Essential Freight Rail Loan Program supports railroad operators and port authorities with loans for rail line and facility improvements to preserve cost-effective freight service in Montana.
Funder: Montana Department of Transportation
Due Dates (Anticipated): October 2027 (Preliminary application) | December 2027 (Supplemental application)
Funding Amounts: Approximately $500,000 available as of June 2024; loans normally repayable over ten years
Summary: Revolving loans support preservation and improvement of Montana freight branch lines and related rail facilities.
Key Information: Applicants must derive railroad operating revenue and provide at least 30% rehabilitation or 50% new-construction matching funds.
Description
The Montana Essential Freight Rail Loan Program is a revolving loan fund administered by the Montana Department of Transportation (MDT) to preserve and enhance freight branch line service. It supports construction, reconstruction, rehabilitation, and other improvements to branch lines and related facilities in Montana. Projects must help preserve and enhance cost-effective freight rail service for Montana communities and businesses.
The program advances an efficient freight rail network integrated into a multimodal transportation system, supporting industries such as agriculture, energy, and wood products that depend heavily on rail. Authorized by the Montana Essential Freight Rail Act, it uses funds originally provided by the Federal Railroad Administration. Loan repayments replenish the fund for future projects.
