Feds sink $25 million into Detroit light rail

Plans for a light rail line in Detroit got a boost with a $25 million grant from the federal government.

The money will help with the first phase of the project, which will connect Detroit’s downtown and New Center areas. That 3.5 mile stretch could ultimately extend up Woodward Avenue to the city’s border at Eight Mile Road.

The project is backed by a powerful group of business leaders in the city – including Dan Gilbert, Peter Karmanos, and Roger Penske. They’ve helped pull together about $125 million in private funding. In an unusual arrangement, the federal government agreed to match those private dollars. Normally the city would have to put up the money, but Detroit is broke.

The project is expected to break ground this year.