South Dakota is slated to receive $5.67 million in Special Transportation Circumstances (STC) Grant funding for three rail projects via the U.S. Department of Transportation’s Federal Railroad Administration (FRA).
“This more than $5.6 million federal investment will upgrade rail infrastructure and enhance rail safety in communities across South Dakota,” Transportation Secretary Elaine L. Chao said.
Officials said the STC grants were made available by the Consolidated Appropriations Acts of 2019 and 2020, noting the funding breakdown includes Dakota, Missouri Valley & Western Rail improvement up to $1.87 million; Midland Rail improvement up to $2.24 million; and Mitchell-Rapid City meet and pass siding up to $1.56 million.
Federal funding awarded for STC Grants must not exceed 80 percent of the total project cost, officials indicated, noting the required 20 percent non-Federal share may comprise public sector—state or local—or private sector funding, or both.
“We’re pleased to support the South Dakota Department of Transportation’s work to improve the state’s rail system and look forward to seeing these changes,” FRA Administrator Ronald L. Batory said. “A healthy rail system is vital to a strong U.S. economy, and grants allow FRA to contribute to sustaining and improving this important transportation network.”
Authorities said the Fixing America’s Surface Transportation (FAST) Act authorized the STC grants, which they noted, in turn, provided directed grant funding appropriated for the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program and the Restoration and Enhancement (R&E) Grant Program for the rail capital projects.