The shared project with the Minnesota Department of Transportation is expected to cost $3,300,000 with Rushford putting up $1,700,000 of that.
The Tri-County Record reports the city council approved a request for its share of the funds from the Public Facilities Authority of the Minnesota Department of Employment and Economic Development.
The request will be in competition with funding requests from other communities across the state.
The project is scheduled to be undertaken in 2014.
The city's consultant said Rushford could save money because the interest rates on the state funds payback would be lower than general obligation bonds.