Granite City's rail yard and river port are in line to receive a combined $14 million in federal funding, money that will rebuild decades-old track and shore up the only rail link connecting America's Central Port to all six Class One carriers. U.S. Rep. Nikki Budzinski announced the awards, which split between a rail yard rebuild and a port rehabilitation project.
Two Grants, One Rail Corridor
The Federal Railroad Administration awarded $7,351,346 to V&S Railway through its Consolidated Rail Infrastructure and Safety Improvements program, according to riverbender.com. That money will go toward rebuilding 1942-era yard track at the Gateway Rail Yard so it can handle 286,000-pound railcars, and it will add a new transload spur serving A&K Railroad Materials' planned continuous welded rail facility. Separately, the Maritime Administration awarded $6,772,000 to America's Central Port through its Port Infrastructure Development Program, funding that will rehabilitate the port's only access to all six Class One rail carriers. As originally reported by STLtoday.com, the combined $14 million figure reflects both awards together.
Budzinski, who represents a congressional district covering parts of Madison and St. Clair counties in the Metro East, said the rail yard upgrades could let the Gateway Rail Yard and other local companies expand a rail manufacturing plant at the site. She has also said the broader package of projects will help Illinois farmers and strengthen supply chains that move the state's crops to market.
What the Money Actually Rebuilds
The scope of the port project is detailed further by waterwaysjournal.net, which reports the Granite City Rail Reconstruction Project will rehabilitate more than 9,400 track feet, including ballast, ties and rail, while replacing 12 turnouts and adding two crossovers. America's Central Port sits on the Mississippi River south of Locks No. 27, and the facility upgrades are meant to complement the rail improvements underway nearby. The port grant was part of a larger $498 million round of FY 2026 Port Infrastructure Development Program awards spread across 35 projects in 19 states, 14 of which went to inland river, Gulf Coast and Great Lakes ports, per the same account.
On the rail side, the V&S Railway award is one piece of a much bigger national push. The Federal Railroad Administration announced $2.3 billion in CRISI grants on Oct. 19 for 105 projects across 45 states and the District of Columbia, chosen from 368 applications seeking a total of $12.2 billion, according to trains.com. Short-line railroads like V&S took home 87 of those awards, totaling $1.885 billion. Grant recipients must contribute at least 20% of total project costs, and a willingness to put up more than that minimum is one factor federal reviewers weigh when picking winners, the outlet notes.
Illinois' Bigger Share of the Pie
Granite City's award was one of two CRISI grants Illinois railroads received in this round. The Decatur and Eastern Illinois Railroad is set to receive $42,554,984 for new rail and ties, upgraded switches and sidings, improved crossings and rehabilitation of a key bridge, according to wandtv.com. Combined with V&S Railway's $7,351,346, the two Illinois projects totaled nearly $50 million in CRISI funding, the station reports, all aimed at improving rail safety, efficiency and reliability.
The continuous welded rail facility that the Granite City spur is meant to serve is expected to roughly triple domestic production of that rail at the site and support new jobs and skilled workforce training in the area, per riverbender.com's reporting — though those outcomes remain prospective rather than realized. For now, the funding marks a federal commitment to rebuilding infrastructure along the Mississippi River corridor that Budzinski's office says will ripple outward to farmers and manufacturers across the region.
