Iowa gets federal money to aid railroad corridors

Iowa is getting a share of new funding for passenger rail equipment in six Midwestern states, which could lay the groundwork for enhanced rail service.

Federal transportation officials announced plans Monday for $268 million for the purchase of rail cars and locomotives in corridors in Iowa, Illinois, Indiana, Missouri, Michigan and Wisconsin.

"I have long been a proponent of passenger rail and any help to expand the Midwest network will make all rail lines more successful by encouraging increased ridership and promoting rail as a viable, convenient travel alternative," said Rep. David Loebsack.

Alexandra Krasov, a spokeswoman for Rep. Bruce Braley, said federal transportation officials are still working to decide details of the package, including how much money will go to each state. State officials will then direct how the money should be spent.

The funds are part of $2 billion being awarded to 15 states that became available when Florida's governor canceled plans for high-speed train service. Although the money is intended to pay for high-speed rail projects, rail lines in Iowa currently can't support high-speed trains.

Iowa will receive some of the money regardless of how it resolves another proposed rail expansion. That plan would create an Amtrak route from Iowa City to Chicago.

Federal officials have made $230 million available for that route, but it would require $20 million in state matching money and a $3 million annual expense. Gov. Terry Branstad says it's up to lawmakers whether to approve that money.

"Ultimately, the future of high-speed rail will be determined by legislative funding and we defer to them on that decision,"' said Branstad spokesman Tim Albrecht.

Branstad in the past has worried about the state's ongoing obligation to subsidize the rail operation, but Albrecht said the governor is content to leave the issue with lawmakers for the moment.

"If it makes it through, we'll make a decision, but why do that if it's not coming to us," said Albrecht.

Braley said building the new rail route, a project scheduled for completion in 2015, would create 588 jobs.

"Passenger rail is critical to the continued economic development of the region," said Braley. "This is one more step to create jobs and put Iowa's economy back on track."

Sen. Bob Dvorsky, D-Coralville, who heads the Senate Appropriations Committee, said funding for the rail operation is included in legislation fleshing out the state's 2013 budget. He said Democrats who run the Senate are bargaining with Republicans in charge of the House over the issue.