The US Federal Transit Administration (FTA) will provide the State Metropolitan Council with $474m worth of funding for a central light rail corridor between Minneapolis and St Paul in Minnesota, US.
The 11-mile rail line will include 18 new stations, 31 new rail cars and a new vehicle maintenance facility in St Paul that will begin operations in 2014.
On the route, trains will run every 7.5 minutes during week day peak periods, providing better access to the University of Minnesota, the Midway area, the State Capitol complex and major event venues including Target Field and the Metrodome.
US transportation secretary Ray LaHood said that the investment in this critical transit link between the twin cities will cut travel costs for consumers and help create a cleaner, greener way to get from one place to another.
Under the funding agreement, the federal government will appropriate a portion of its share each year until 2015, when the $957m project will be fully funded.
The line is expected to carry over 40,000 peak time passengers by 2030, generating 6,000 new transit trips a day.