The US Federal Transit Administration (FTA) will provide $1.5bn in funds to the $5bn Honolulu Rail Transit project.
FTA has already provided $55m of the $1.5bn fund for the rail project, according to progressiverailroading.com.
The FTA is also expected to have approved a final environmental impact statement (EIS) for the Honolulu light-rail line, the Honolulu Mayor Mufi Hannemann said.
The proposed elevated light-rail line is intended to have an average weekday ridership of 116,300, lower traffic delays by 18% and remove 40,000 vehicles from highways by 2030.
Honolulu is planning to launch the light-rail service on the first leg of the 6.5-mile segment between Kapolei and Pearl Highlands in 2012.