MDOT: Freight Rail Grant Applications Welcome

Applications are now being accepted for Maryland’s Freight Rail Grant Program (FRGP), which will invest a total of $1 million in projects that help “preserve rail corridors, support economic development, and foster sustainability and innovative technologies,” according to program administrator Maryland Department of Transportation (MDOT) Office of Rail and Intermodal Freight (ORIF).

Local governments, Maryland State agencies, Metropolitan Planning Organizations (MPOs), railroad operators and owners, rail-served business entities, and nonprofit organizations are eligible to apply (see maps below). The deadline for submissions via the Maryland “OneStop” application portal is 11:59 p.m. EDT on June 30, 2025.

FRGP, a state-funded competitive, reimbursable grant program, covers two project types:

1. Design: Funding can be used for the completion of design plans and feasibility assessments of proposed or potential rail corridor improvements, or to assess issues such as economic benefits, environmental impacts, right-of-way issues, local support, and cost estimates. A project must be completed within two years of the grant award.
2. Construction: Funding can be used for construction or installation of rail corridor improvements. According to MDOT, this may include sidings/sidetracks, eligible grade crossings, bridges/structures, drainage improvements, and other major projects. Design may be funded as a component of a construction award, MDOT said. A project must be completed within three years of the grant award. MDOT noted that funding may not be used for routine maintenance projects. 

Projects should align with the goals and objectives of the Maryland Transportation Plan, Maryland State Freight Plan, and the Maryland State Rail Plan, according to MDOT. Ideally, it said, a project will align with one or more of the following areas:

• Expansion of rail service or rail-served businesses. A project may identify, develop, and improve industrial or commercial sites “with the intent to support current or future rail access and service,” or restore or expand rail service to existing commercial or industrial sites. 
• Safety and security. A project may implement strategies or measures that improve the overall safety of railroad corridors and rail-served properties. 
• System preservation and modernization. A project may implement or study “innovative technologies that support the goals of the program,” or develop capital improvements that contribute to the ongoing operations of a rail corridor or railroad operator. 
• Environmental protection and sensitivity. A project may make improvements that contribute to carbon reduction policies and programs and encourage a mode shift.
• Fiscal responsibility. A project may preserve and rehabilitate inactive railroad infrastructure assets.

According to MDOT, the project sponsor must provide a local funding cash match; the minimum local match is 20% of the total project cost. Projects matching more than 20% will receive preferred consideration, it noted.

To discuss project ideas or ask questions about the program, contact Thomas Mackay at FreightRail@Mdot.maryland.gov.

Separately the Virginia Department of Rail and Public Transportation recently drafted a Fiscal Year 2026–2031 Six-Year Improvement Program that outlines planned investments of $7 billion in public transportation and freight and passenger rail across the Commonwealth.