Railroad Revolving Loan Grant Program (RRLG)
Railroad Revolving Loan Grant Program (RRLG) supports Iowa businesses, railroads, and communities with rail improvements and planning to create or retain jobs, improve industrial access, and strengthen rail service.
Funder: Iowa Department of Transportation
Due Dates: July 2, 2026, at 5:00 p.m. (FY 2027 job creation and network improvements) | Year-round (Rail port planning)
Funding Amounts: Approximately $3.2 million anticipated for FY 2027; job creation grants up to $12,000 per job; planning grants up to $100,000; loans at 0% for up to 10 years
Summary: Grants and loans support Iowa rail infrastructure and planning that create jobs, improve industrial access, and strengthen the rail system.
Key Information: Projects cannot begin before an executed agreement unless Iowa DOT approves a written advance eligibility waiver.
Description
The Railroad Revolving Loan and Grant Program is administered by the Iowa Department of Transportation’s Rail Team. It finances rail facility improvements that create or retain jobs, spur economic activity, and strengthen Iowa’s rail transportation system. The program supports businesses gaining access to low-cost, energy-efficient rail transportation and helps railroads maintain dependable service. Funding comes from state appropriations and repayments of earlier rail development loans.
Three categories address different needs: infrastructure serving specific industries or industrial developments with direct job commitments; improvements sustaining existing rail lines or industrial access without verified job creation; and rail port planning studies. Planning studies help communities, counties, and regions assess facility locations, designs, and funding needs. The Iowa Transportation Commission approves projects and determines awards.
