Springfield Rail Improvement Project takes a major blow, feds deny crucial funding

An unexpected blow hit the Springfield Rail Improvement Project this week when the U.S. Department of Transportation denied a $138 million grant request necessary to complete the final portions of the project.

The denial means Springfield and Sangamon County's most significant project in years − relocating downtown rail traffic from Third Street to the 10th Street corridor − will be delayed more than a year. The project was expected to finish in 2025.

U.S. Sen. Dick Durbin, D-Ill., said in a letter to Transportation Secretary Pete Buttigieg that because the department didn't allocate any money to SRIP this year, construction on the final usable segments and the HUB – a multi-modal transportation center – could not be completed in the next two years.

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Durbin hoped that USDOT would make Springfield a priority for federal rail grants in 2024, to get the project back on track.

"It is my hope that you will strongly consider SRIP’s applications for any federal rail grants in 2024, so the project can move forward," Durbin said. "The remaining work is shovel-ready, and the City of Springfield and its partners are eager to move the project across the finish line after a decade of effort."

SRIP has been in the works for over 10 years with construction completed on the southern portion of the railroad through underpasses at Ash, Laurel, and Carpenter streets and new rail bridges along 5th and 6th Streets.

Work is continuing on underpasses at Madison, Jefferson, and Cook streets, and South Grand Avenue. City officials announced Friday that South Grand Avenue would be closed between 9th and 11th streets for eight days beginning Jan. 8 to demolish the Norfolk Southern bridge substructure.

The federal government has already provided at least $98 million for the $475 million project. The Illinois Department of Transportation, Sangamon County, and the city of Springfield combined have spent $227 million on the project, so far. Another $138.5 million was needed for the last segments, which include an overpass on North Grand Avenue and a new track along the 10th Street corridor.

In addition, the $111 million HUB transportation center, which will be the home to Amtrak and bus service along with a parking garage, art exhibits, and dining has yet to be finished.

Sangamon County Board chairman Andy Van Meter said that as a result of USDOT not providing funding, the project will be pushed back until at least 2027. Engineers at Hanson Professional Services are reviewing how far they can stretch existing grants to keep progressing on the project, but August is the earliest new funding can be secured.

Van Meter said that USDOT did not give a reason why funding wasn't provided to SRIP. A meeting is planned in early 2024 for applicants who didn't receive funding in 2023.

"At some point, when we apply again, there will be an opportunity to get any advice they may have about our previous application and any changes we need to make," Van Meter said.

The delay will make the project more expensive, Van Meter said, estimating the price tag could increase by $10-20 million, moving the cost close to $500 million at completion.

"For the community, that means we're going to have to come up with $2-4 million that we otherwise didn't have to come up with," Van Meter said. "But that's part of the research now is how to come up with those additional funds or how to cut costs if we can't come up with those additional funds."

Durbin said, that once completed, the rail project could be a boon for economic development.

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"This transportation center would not only improve connectivity for Springfield residents and all who pass through Illinois’ capital, it also would spur transit-oriented development and benefit historically underserved residents in the area," Durbin said.

Van Meter said he was confident the rail project will be completed and praised the work Durbin, U.S. Sen. Tammy Duckworth (D-Ill.), and U.S. Rep. Nikki Budzinski (D-Ill.) have done in fighting for federal funding for the project.

"We have a congressional delegation that is indefatigable in pushing this project," Van Meter said. "There is so much money in the project now (that) it would be hideous not to finish it."

This article originally appeared on State Journal-Register: Feds deny funds for Springfield Rail Project delaying completion