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February 28, 2011

Railroad grant escapes budget cuts

A $10.5 million federal grant to help the state take ownership of 233 miles of railroad track in northern Maine has been saved from budget-cutting efforts.

U.S. Sen. Susan Collins announced Friday that the Federal Railroad Administration and the Maine Department of Transportation reached an agreement that secures the grant funding, according to a press release. The funding, part of federal TIGER program grants, was in jeopardy as the U.S. House of Representatives proposed a bill to eliminate transportation infrastructure grants from the federal budget. The agreement between the railroad administration and the DOT ensures the funds will be released even if the House-passed bill becomes law.

The state in October reached an agreement with Montreal, Maine & Atlantic Railway to buy the tracks, which the company planned to abandon due to loss of revenue. The grant will fund track improvements.

A similar, $20 million federal grant to help replace the aging Memorial Bridge between Maine and New Hampshire is also part of the proposed cuts and still remains in limbo.

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