Wisconsin Public Radio reported the funds would provide matching funding for federal transport grants to complete infrastructure improvements needed before service could increase from the current seven daily round trips to 10.
Hiawatha carried 844,396 passengers in 2018, up 1.8% from 2017, according to Amtrak.
The funding allocation is $US 10m less than the amount proposed by governor of Wisconsin, Mr Tony Evers, in his state budget proposal.
Wisconsin Department of Transportation will also seek matching funding from other stakeholders.
