BY RACHEL CHEESEMAN

PORTLAND- TriMet received word Monday that the federal government would fund half of the Portland-Milwaukie light rail project, providing TriMet with just under $736 million.

“With the help of our federal partners,” said TriMet General Manager Neil McFarlane, “this project will move forward and improve transit options for this corridor and throughout the region while also creating jobs.”

TriMet originally sought 60 percent of funding, about $850 million, for the project. While the Federal Transit Administration expressed strong support for the project, it could not provide more than 50 percent for projects greater than $1 billion.

The total cost of the line is estimated to be $1.4 billion for the 7.3-mile line, about $200 million per mile, which would extend from Portland State University Park Avenue to McLoughlin Boulevard in Milwaukie.

The rest of the financing is expected to come from various state and local sources.

The city of Milwaukie has promised $5 million, Clackamas County has promised an additional $25 million, and Metro approved about $145 million towards the project. TriMet has appropriated $40 million by issuing payroll tax-backed bonds. The city of Portland has pledged an additional $30 million from tax increment financing. Finally, the state of Oregon has put up $250 million in lottery-backed bonds.

The 10 percent reduction in expected federal contribution leaves the project with a calculated $140 million gap in the budget.

Mary Fetscher, TriMet’s public information officer, said that TriMet will talk with project partners to see if more funds are available, but it will also spend the next few weeks working to make the project fit within the new budget by finding other cost-reducing measures like simplifying station designs.

Fetscher said that while the construction of the rail would benefit those living along the rail, many others benefit from the expansion of the rail system.

“It’s not just where you build it where you see a benefit,” she said. “As we build out our system, more people can connect to more places. We see ridership increase throughout the region.”