The state of Illinois has told the Federal Railroad Administration that it is moving forward with the Chicago to Quad-Cities passenger rail project, an official said Tuesday.

The decision may well keep in place $177 million in federal funding that was awarded in 2010 for the connection, but that will be up to the Federal Railroad Administration, which had said the grant would expire June 30.

Local officials have been lobbying Gov. Bruce Rauner to ask for an extension.

“The Illinois Department of Transportation has informed the Federal Railroad Administration that it will be proceeding with the proposal to reintroduce passenger rail service between Chicago and Moline," Guy Tridgell, a spokesman for the Illinois DOT wrote in an email Tuesday morning. "As we move forward, we remain strongly committed to looking out for the best interest of all Illinois taxpayers."

The state's initial match for the grant amounts to $45 million, and in the midst of the budget impasse, the governor's office has been willing to say lately only that the project is under review.

The railroad administration sent a letter to the state on April 4 outlining steps to close the grant, as well as options to allow it to be extended. A grant amendment would include a revised timeline for the project.