U.S. Transportation Secretary Ray LaHood says Detroit's proposed passenger rail system won't get a $25 million grant supporters were seeking but remains in the running for equal funding from other programs.
Published reports say LaHood wrote to M-1 Rail group head Roger Penske saying it won't receive the grant under the Transportation Investment Generating Economic Recovery program. LaHood says there are lingering concerns about the project and how its operations will be financed.
Penske's private group proposes a $137-million light rail line that would run 3.3 miles along Woodward Avenue from downtown to the New Center.
U.S. Sen. Carl Levin says the announcement is "positive news" for the rail project because LaHood remains committed to light rail in Detroit and to finding alternate funding.