Moorhead has received a $360,000 federal grant to help build an interchange with Interstate 94 on 34th Street.
The grant is part of $1 million of federal money earmarked for the $12 million project, which would also expand 34th Street to four lanes south of 12th Avenue to I-94, City Engineer Bob Zimmerman said.
The $1 million will be used to hire consultants to study the site and to design the interchange, he said.
The project, along with a $23 million railroad underpass planned at the intersection of 20th/21st Street South and Main Avenue, is part of the city's comprehensive railroad safety program.
Federal officials have given Moorhead $2.5 million for the underpass project, Zimmerman said.
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He said the earliest either project could begin would be 2007. The underpass project is a higher priority, but the city will begin work on the interchange project first if it does not have enough money to pay for the underpass.
City officials have not decided how they will pay for their share of the projects, estimated to be $1.5 million for the interchange and $3.5 million for the underpass.
