U.S. Department of Transportation Ray LaHood announced $75 million in federal funding for the Portland Streetcar expansion, a major boost for communities surrounding the $127 million, 18-station, 3.3-mile eastside extension.

Secretary LaHood and members of the Oregon Congressional delegation announced the Portland project as part of the Department’s ongoing livable communities initiative to promote sustainable surface transportation programs that are more safe, reliable and cost-effective for commuters.

The proposed service will operate every 12 minutes during weekday peak periods. Revenue operations will begin in 2011. The line is expected to carry approximately 8,700 passengers daily.

A portion of the total project cost is being funded by FTA’s Small Starts program, aimed at promoting less costly but effective transit projects. To be eligible for the program, the request for Small Starts funding must be no greater than $75 million and the total project cost must be less than $250 million.

Upon completion, the eastside extension of the Portland Streetcar Loop will include 18 new stations, seven new vehicles and significant capital improvements to the Broadway Bridge to accommodate streetcar operations.  Oregon Ironworks Inc., based in Clackamas, Ore., will manufacture the seven new vehicles.