GRAND ISLAND, Neb. — A $1.4 billion announcement made right here in Nebraska.

U.S. Transportation Sec. Pete Buttigieg traveled to Grand Island for a news conference. He held it at Cathcart rail following a tour with local dignitaries and reporters present. He said it’s important to showcase this in Nebraska because it shows how rail serves a diverse selection of communities across the country.

"We wanted to emphasize that communities of all sizes and types are benefiting," Buttigieg said. "This is not the country's biggest railroad, but it is very, very important in this region.”

Nebraska is receiving $15.2 million for the Cornhusker Railroad Regional Connectivity project. The short-line railroad is operated by Cathcart Rail and serves the vital role of connecting the Union Pacific to the Burlington Northern Santa Fe.

“It’s going to rebuild most of the railroad," Cathcart Rail CEO Casey Cathcart said. "It’s going to add new track, it’s going to upgrade the yard. It’s going to rebuild the five miles between the UP and the BN. It’s going to allow new customers to connect to the railroad to have more jobs, more growth and more economic development.”

Grand Island Mayor Roger Steele helped welcome Buttigieg to the city. He’s excited for the project’s impact beyond the tracks.

“It increases the efficiency of shipping so much," Steele said. "I think it will take some of the pressure off of interstate 80 because more of the goods that come out of Central Nebraska will go by rail instead of by truck.”

But the project in Grand Island is just one of 70 being funded nationally. Buttigieg says they’ll have a massive affect on the economy.

“When there’s an issue, an obstruction, anything in our supply chains that makes them less efficient than they could be, that puts upward pressure on prices," Buttigieg said. "Part of the fight against inflation, part of what it takes to lower costs for American families, is to invest in the supply side of getting things where they’re supposed to go.”

According to the Secretary of Transportation, the stakes are high.

“When we look at the state of rail in America, I strongly believe that the before and after pictures are going to hinge on this decade, on this season that we’re living in right now," Buttigieg said. "That’s what this administration is most focused on, making sure that we leave America’s transportation systems better than we found them.”

Local officials say the track that will be replaced near Grand Island is more than 50 years old and is in desperate need of these repairs. They’re excited because it means more jobs locally and it means better ease of getting goods across the country.