State rail grant and loan programs

Freight Rail Investment Bank

The FRIB is a loan program available to the public sector. This program is intended for either smaller projects or as a small part of a larger project, where state funds would enable the project to be completed.

• This loan program is open to organizations in the public sector only, as loans to the private sector are outside the constitution of the state.
• All applicants must provide a minimum 20% match.
• A 2% simple annual interest rate is applied to the repayment period of no more than 15 years to cover administrative costs.

Freight Rail Assistance Program

The FRAP is a grant program open to applicants in both the public and private sector. This program is directed toward larger projects that are challenged to secure funding and where the rail location or the project is of strategic importance to the local community and the state.

• The amount sought in individual applications is not restricted, but it is based on available funding.
• The Legislature determines how those funds will be spent based upon the applications submitted through WSDOT. The Legislature may choose to increase or decrease the actual funding made available.
• This grant program is open to cities, county rail districts, counties, economic development councils, port districts, and privately or publicly owned railroads.
• Projects must be shown to maintain or improve the freight rail system in the state and benefit the state's interests.

Current status

The 2024 Call for Projects for the 2025–2027 biennium has closed. All applications submitted by the deadline were thoroughly reviewed, scored, and forwarded to the Legislature for funding consideration during the 2025 session. Following legislative approval, selected projects have been awarded funding. In total, the biennial program has provided $5 million for FRIB loans and $7.04 million in FRAP grants.

Tacoma Rail was the successful recipient of two FRIB loan projects. The successful recipients of the FRAP grants were Cascade & Columbia River Railroad; Highline Grain Growers LLC; Rainier Rail; Columbia Basin Railroad; and Pacific Northwest Farmers’ Cooperative. 

Upcoming call for projects

In May 2026, WSDOT will issue a Call for Projects for the 2027-2029 Biennium. The FRIB and FRAP programs are anticipated to have $5 million and $7.04 million, respectively. The anticipated amounts are subject to change and will be determined during the 2027 legislative session. At this point, funding availability is not guaranteed. 

Administration and scoring

The grant and loan programs are administered by WSDOT and require the applicants to provide a business plan for the project as well as a benefit/cost calculation to ensure they are generating public benefits. For an example of what is required, the previous FRIB-FRAP 2025-2027 APPLICATION PACKAGE (PDF 861KB) is available for your reference. 

If a public sector applicant submits an application that does not score well against other applications, loans may be available for the same funding amount and would be subject to repayment and 2% simple interest.  

Evaluating and scoring applications will be conducted by representatives from the WSDOT, the Washington Public Ports Association, and the Washington State Departments of Agriculture and Commerce.