In February 2010, the United States Department of Transportation awarded a $25 million federal grant for a light rail line connecting downtown Detroit to the New Center Area.  The funds were awarded as part of the U.S. DOT's Transportation Investment Generating Economic Recovery grant program.

M1 Rail, a non-profit public/private partnership, is using both public funds and privately raised funds to build light rail along Woodward Avenue from Hart Plaza to the New Center. The City of Detroit and Detroit Department of Transportation are in the process of applying for additional federal funds from the Federal Transit Administration’s $6.6 billion New Starts program to create the second phase of the light rail line, from the New Center Area to 8 Mile Road, creating a continuous transit line between Hart Plaza and 8 Mile Road.

As reported by Crain’s Detroit, M1 Rail’s Board of Directors (and chief financiers) include Penske Corp. founder Roger Penske, Quicken Loans/Rock Financial founder Dan Gilbert, Peter Karmanos Jr., founder of Detroit-based software maker Compuware Corp.; Mike Ilitch, owner of the Detroit Tigers and Detroit Red Wings and co-founder of Little Caesar Enterprises Inc.