FRANKFORT, Ky. (April 30, 2026) – Today, Gov. Andy Beshear announced a $3.1 million investment to fund seven infrastructure projects that will enhance railroad lines and industrial access sites. Awarded from the Kentucky Industrial Access and Safety Improvement (KIASI) program and the Kentucky Short Line Infrastructure Preservation (KSLIP) program, the grants will help fund safety monitoring systems, scale installations, the establishment of two new transloading locations for freight transfer, a railcar repair facility, erosion control, and more.
“Kentucky’s rail network is an economic engine that moves millions of tons of freight and generates billions in labor-income every year,” said Gov. Beshear. “These projects will support good-paying jobs and help keep our railways running smoothly and safely for years to come.”
This is the third round of KSLIP funding, with previous grant awards announced in August 2025. It’s the fourth time KIASI funding has been issued, with its last round in December 2025. Each grant project is reviewed and recommended for funding by selection committees made up of staff from the Kentucky Transportation Cabinet and the Kentucky Cabinet for Economic Development, which prioritize applications based on criteria such as enhancements to existing rail lines, job creation and capital investment, retaining existing or attracting new rail-served industries, and project readiness. Applicants provide a minimum of a 50% match for the project.
“Investing in infrastructure such as railroads is an investment not just in transportation but in our people,” said Transportation Cabinet Secretary Rebecca Goodman. “Through this grant program, we’re creating more economic opportunities for more Kentuckians.”
Paducah and Louisville Railway (PAL) is one of three railroads to receive state dollars in this round of awards through the KSLIP program. The award of more than $900,000 will fund the upgrade of monitoring systems that will support eight hot-box detectors that will enhance a system to proactively monitor, collect data and analyze temperatures of train components integral to safety.
“Paducah & Louisville Railway is honored to receive a KSLIP grant to help modernize and expand our trackside railcar health monitoring system,” said Tom Greene, President and CEO of Paducah & Louisville Railway. “These upgrades will increase network coverage and provide real-time monitoring capabilities, allowing P&L to identify and address potential equipment failures before they become serious incidents, protecting both our crews and the communities we serve. By investing in modern technology and contributing our own matching funds, P&L remains committed to ensuring safe, efficient rail service that helps drive growth, attract industry, and keep Kentucky competitive. P&L is grateful to Gov. Beshear and the General Assembly for their continued support of this critical program.”
Jared Donaldson Trucking LLC is one of four KIASI grant recipients in this round of funding. The $500,000 award will go toward opening a rail spur, new scales, conveying systems and installation of a new turnout to allow railcar access for direct loading onto trucks.
“This investment is a big step forward for Hickory and the surrounding area,” said Jared Donaldson, Owner of Jared Donaldson Trucking LLC. “Getting the rail spur back up and running and creating our transloading access will open the door for more business, support jobs and help us move products more efficiently. We’re grateful for the KIASI grant and the state’s support in making this happen.“
Gov. Beshear has awarded over $32 million through the two state grants that strengthen and support Kentucky’s railway infrastructure, industrial sites and the state’s economy since beginning his second term in 2024.