U.S. Sen. Chuck Grassley (R-Iowa) is welcoming over $62.7 million in federal funding from the U.S. Department of Transportation to improve the safety, efficiency and performance of the Cedar Rapids and Iowa City Railway (CRANDIC) and Iowa Interstate Railroad.
The funding comes from the Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant program, which was first authorized in 2015 and later expanded by the Grassley-backed Infrastructure Investment and Jobs Act (IIJA).
“I’m glad to see the Department of Transportation investing in Iowa to improve the safety and efficiency of our railroads. The bipartisan infrastructure law I supported continues to deliver for our state and grow our economy by helping move Iowa’s world-class products to market safely and swiftly,” Grassley said.
The funding to the Iowa Interstate Railroad will be used to rehabilitate 18 miles of track, including in Iowa City, Des Moines and Davenport. The funding to the Cedar Rapids and Iowa City Railway will be used to procure three Tier 4 line-haul freight locomotives for use in eastern Iowa. Additional details follow.
DEPARTMENT OF TRANSPORTATION
NOTICE OF AWARD FOR IOWA INTERSTATE RAILROAD
Date: 10/19/2026
Grant: FY25-26 CRISI
Project: Fortify Iowa Interstate Railroad with Steel & Ties
Locality: Des Moines, Iowa City, Davenport (IA); Bureau, La Salle, Henry (IL), IA Applicant: Iowa Interstate Railroad, LLC
Grant Amount: $48,176,960
DOT Agency Disbursing Funds: Federal Railroad Administration
Description: The proposed project was selected for construction and includes track rehabilitation and bridge replacement in Iowa City, Des Moines and Davenport, Iowa and Bureau, La Salle and Henry, Illinois. The project will rehabilitate approximately 18 miles of track by replacing rail, ties and a bridge. The project aligns with the selection criteria by enhancing safety, improving system and service performance and improving reliability as the project will result in FRA Class 3 track standards and reduce the risk of derailments. Iowa Interstate will contribute a 25% non-federal cost share. This project qualifies for the statutory set aside for projects in rural areas.
DEPARTMENT OF TRANSPORTATION
NOTICE OF AWARD FOR CEDAR RAPIDS AND IOWA CITY RAILWAY
Date: 10/19/2026
Grant: FY25-26 CRISI
Project: Cedar Rapids and Iowa City Railway American Diesel Advancement Project (CADAP)
Locality: Cedar Rapids, Iowa City, IA
Applicant: Cedar Rapids and Iowa City Railway
Grant Amount: $14,549,744
DOT Agency Disbursing Funds: Federal Railroad Administration
Description: The proposed project that was selected for construction includes the procurement of three Tier 4, line-haul locomotives for use in Eastern Iowa. The project aligns with the selection criteria by improving system and service performance as the project will ensure safe and efficient railcar movement and allow for more operational flexibility. The Cedar Rapids and Iowa City Railway will contribute a 35% non-Federal cost share.
