Overview of Government Assistance Programs
The federal, state, and local governments all have business assistance or funding programs that can assist you in various ways. Iowa DOT may help sponsor applications for federal funding through programs such as Better Utilizing Investments to Leverage Development (BUILD)and the Consolidated Rail Infrastructure and Safety Program (CRISI) program, among others. Iowa Economic Development Authority’s (IEDA) mission is to strengthen economic and community vitality by building partnerships and leveraging resources to make Iowa the choice for people and business. Through its two main divisions – business development and community development – IEDA administers several state and federal programs to meet its goals of assisting individuals, communities, and businesses. IEDA aids in the attraction of new industries along the state’s rail lines. Such investments ensure that these railroads can continue to serve their shippers, thus helping to retain businesses and employment and prevent the diversion of freight from rail to truck and the consequent maintenance impacts to the state highway system.
Railroad Revolving Loan and Grant (RRLG) Program
The RRLG Program offers financial aid to enhance rail facilities for the creation of jobs, economic growth, and improved rail transportation in Iowa. Funding availability for the program varies based on loan repayments and state appropriations. The Iowa Transportation Commission is responsible for approving projects. RRLG money is available to railroads, businesses, local governments, economic development agencies, and non-profit groups.
RRLG Fact Sheet summarizes the accomplishments over time, from 2006-2025, the program has aided with.
The program assists in three categories.
- Targeted Job Creation: Rail projects that offer direct job opportunities are eligible for loans and grants. Grant funding is subject to the applicant's commitment to job creation and retention, while loans can be used to supplement grants if the project's cost exceeds the available grant funding. Both grants and loans require a local contribution.
- Rail Network Improvement: Rail projects that enhance existing rail lines or industrial access and do not create new jobs fall under this category. Loans are the only available funding option. These loans will be provided at a 0% interest rate for ten years. However, a matching contribution of 20% is required for loan requests.
- Rail Port Planning and Development: Funding is available for planning studies that provide information regarding the location, design, or funding needs for a rail port facility. These studies assist decision-makers in evaluating rail development options that promote industrial and business advancement while supporting economic growth. Grants of up to $100,000 are available with a 20% matching contribution required
Grade Crossing Safety Program
This state-funded program has provided funding since 1973 for a portion of the maintenance costs for traffic control devices including flashing light signals, flashing light signals with cantilever assemblies, and flashing light signals with automatic gate arms. These devices are activated by the approach or presence of a train. The program amount is $700,000 annually.
Highway-Railroad Grade Crossing Surface Repair Program
This state-funded program is designed to assist city and county highway authorities and railroads to promote safety through surface replacement at public highway railroad grade crossings. This program is funded through an annual allocation of $900,000 from Iowa’s Road Use Tax Fund.
Iowa Clean Air Attainment Program (ICAAP)
Fixing America’s Surface Transportation Act (FAST Act), the current Federal Transportation Reauthorization Act, continued the Congestion Mitigation Air Quality Improvement (CMAQ) program to provide a flexible funding source to State and local governments for transportation projects and programs to help meet the requirements of the Clean Air Act. Funding is available to reduce congestion and improve air quality for areas that do not meet the National Ambient Air Quality Standards for ozone, carbon monoxide, or particulate matter (nonattainment areas) and for former nonattainment areas that are now in compliance (maintenance areas). Indicative of the Congressional intent for creating the CMAQ Program, the Iowa DOT Commission established ICAAP in 1995. Iowa DOT administers the ICAAP on a statewide competitive application basis and awards federal funds to projects with the highest potential for reducing transportation-related congestion and air pollution.
Revitalize Iowa’s Sound Economy Program (RISE)
Projects funded by the RISE program promote economic development in Iowa through the establishment, construction, and improvement of roads and streets. The RISE program is targeted toward value-adding activities that feed new dollars into the economy and provide maximum economic impact to the state on primary or secondary roads, and city streets open for public use. While all counties and incorporated cities in Iowa are eligible to apply, funding is generally limited to industrial, manufacturing, warehousing, distribution, and professional office developments, with few exceptions.
Projects seeking competitive federal discretionary grant funding under many of the available programs are typically subjected to a rigorous benefit-cost analysis (BCA) to quantify specific public benefits needed to justify the investment, in addition to narrative description of project merits. Additional funding opportunities can be found on the Iowa DOT grant and program list.
Better Utilizing Investments to Leverage Development (BUILD) Grant Program
The U.S. Department of Transportation's (USDOT) Better Utilizing Investments to Leverage Development (BUILD) grant program provides grants for surface transportation infrastructure projects with significant local or regional impact. The eligibility requirements of BUILD allow project sponsors, including state and local governments, counties, Tribal governments, transit agencies, and port authorities, to pursue multi-modal and multi-jurisdictional projects that are more difficult to fund through other grant programs.
Consolidated Rail Infrastructure & Safety Improvements (CRISI) Grant Program
The Consolidated Rail Infrastructure & Safety Improvements (CRISI) Grant Program funds projects that improve the safety, efficiency, and reliability of intercity passenger rail, freight rail, and rail infrastructure. Learn more about this grant opportunity on the DOT Competitive Grants Dashboard’s Consolidated Rail Infrastructure & Safety Improvements Program page.
Carbon Reduction Program (CRP)
The Carbon Reduction Program (CRP) was authorized by the Infrastructure Investment and Jobs Act that was enacted in November of 2021. This program is codified in 23 U.S.C. 175, and it provides funding for projects designed to reduce emissions of carbon dioxide from on-road highway sources.
Highway-Railroad Grade Crossing Safety Program
The Federal Highway Safety Improvement Program (formerly Section 130 funds). These funds are primarily used to install or upgrade crossing signals. Other low-cost improvements may be funded such as crossbuck or yield signs, medians, or incentives for crossing closures. Funding is based on a benefit/cost calculation that considers a number of factors, including highway and train traffic, accident history, and project cost. Iowa DOT anticipates spending approximately $5.2 million per year through this program.
Railroad Rehabilitation and Improvement Financing Program (RRIF)
The RRIF program was established by the Transportation Equity Act for the 21st Century (TEA-21) and amended by the Safe Accountable, Flexible and Efficient Transportation Equity Act: a Legacy for Users (SAFETEA-LU), the Rail Safety Improvement Act of 2008, and the Fixing America’s Surface Transportation (FAST) Act. Under this program the Department of Transportation is authorized to provide direct loans and loan guarantees up to $35.0 billion to finance development of railroad infrastructure. Not less than $7.0 billion is reserved for projects benefiting freight railroads other than Class I carriers.
Railroad Crossing Elimination (RCE) Grant Program
The Railroad Crossing Elimination (RCE) Grant Program funds safety-focused highway-rail or pathway-rail grade improvement, relocation, and installation projects.