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RTSD approves interlocal agreement to secure $66.7M federal grant and fund local match for 30th & Cornhusker project

5739727 · September 9, 2025
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Summary

The RTSD voted to approve an interlocal agreement with the City of Lincoln to facilitate NDOT administration of federal funds for the 30th Street and Cornhusker Highway crossing improvements; RTSD's local-share commitment is capped at $20 million.

The Railroad Transportation Safety District voted Sept. 9 to approve an interlocal agreement with the City of Lincoln that allows the Nebraska Department of Transportation (NDOT) to serve as the recipient of federal funds for the 30th Street and Cornhusker Highway grade-separation project and commits RTSD local matching funds up to $20,000,000.

City staff and project leads briefed the board on recent milestones: Federal Railroad Administration (FRA) and Federal Highway Administration (FHWA) review steps are complete for the environmental review, and the FRA issued a Finding of No Significant Impact (FONSI). Project manager Chris Humphrey said FHWA is now designated as the federal-aid lead and NDOT will administer federal grant funds; Humphrey said receipt of the FONSI was "really great news."

Humphrey said the grant agreement between NDOT and FRA for the federal portion is being finalized; he identified the grant amount that will be sought with FRA as $66,700,000. He said NDOT will also provide right-of-way acquisition services and hold contracts with consultants and contractors under state procedures; the city will remain responsible for day-to-day project administration and will become the owner of constructed improvements.

Under the interlocal agreement, RTSD will pay the city—s 20% local-share portion for final design and some right-of-way work up front; if final costs are lower than estimated, RTSD will receive reimbursement for any excess local match paid. The interlocal will also be included as an exhibit to the city—s program agreement with NDOT.

Board members asked when construction might start. Humphrey said final design will take roughly a year, NDOT is assisting with right-of-way appraisal and negotiations, and that the RTSD could seek a bid date in late 2028 with construction beginning in 2029 for the primary overpass and reconstruction work. He added the project may be phased, with smaller crossing work potentially built sooner. Humphrey said the board could expect right-of-way activity updates at upcoming meetings (December or March were mentioned as possibilities).

The board approved the interlocal agreement 4–0. With NDOT administering federal funds and the RTSD committing up to $20 million in local funds, project staff said the RTSD is positioned to move from preliminary engineering into final design and right-of-way acquisition.