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About the Program

Senate File 2484 was passed in the 2026 legislative session. This legislation created a Railway Tracks Overpass and Underpass Fund in the state treasury under control of the Iowa Department of Transportation (DOT). The Iowa DOT is charged with establishing a program to distribute and administer the newly created fund. The funds shall be distributed in the form of grants to cities and counties to assist with the construction of highway overpasses and underpasses across railway tracks. Iowa DOT has named the program through which these funds will be distributed the Railway Overpass and Underpass Program (ROUP).

Eligible Applicants

Cities and counties in Iowa are eligible for this grant. Cities and counties must also be coordinating with the applicable railroad(s).

Eligible applicantsMaximum Feasibility
Study Award
Maximum
construction award
Annual
program funding
Iowa cities and counties$75,000$2.5 million$5 million/year
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Eligible and Ineligible Activities

Example of a railway overpass/underpass

Eligible Activities

There are three categories of eligible activities:

  • Feasibility/planning study to address an existing overpass or underpass or to assess the options for a new grade separation structure at an existing at-grade crossing (Planning)
  • New construction of an overpass or underpass at an existing at-grade crossing (Construction)
  • Replacement of an existing overpass or underpass (Construction)

Ineligible Activities

  • Repair and/or maintenance of existing crossings, either at-grade or grade-separated
  • Grade separation for a new road/new crossing (crossing does not currently exist)
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Qualifications for Funding

Applicants must:

  • be eligible applicants,
  • be able to demonstrate financial need,
  • submit complete application by deadline, and
  • be able to fund portions of the project not funded by ROUP.

Maximum Funding

Awards for feasibility studies are not anticipated to exceed $75,000 each, and construction projects are not anticipated to exceed $2,500,000 each. Awarded projects will be funded and reimbursed at 100%, up to the award amount specified in the project funding agreement.

Program’s Annual Funding Level / Funding Availability

This program received funding of $5,000,000 per year for fiscal years 2027 through 2031. This provides a total of $25,000,000 over the five years funded. 

 

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Project Selection

Applications will be reviewed annually by a small committee made up of Modal Transportation Bureau staff. Applications will be scored and will include both a narrative and data-driven defined questions. Once all applications have been reviewed, the review committee will select projects to be recommended to the Iowa Transportation Commission for award.

Applicants may submit multiple applications per funding cycle. However, no applicant will be awarded more than one award per fiscal year.

Expectations for Selected Projects

Selected feasibility studies must be under contract within 18 months of full execution of funding agreement.

Selected construction projects must be let within 3 years of full execution of funding agreement.

Construction projects must be let at the Iowa DOT.

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Important Dates

November 2026

A Notice of Funding Availability (NOFA) is anticipated to be published in November 2026 for the first round of funding

February 19, 2027

Applications are anticipated to be due February 19, 2027 and annually thereafter.

More specific dates will be announced in the future.

Summer 2027

Approval notifications are generally sent within six (6) months of the application due date.

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Applications & Submittals

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Applications, Recommendations, and Awards

A list of received, recommended, and awarded applications will be shown after the application deadline has passed.

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