More than £1m is being made available to help a tourist attraction badly damaged by the recent heavy rain.
A landslide affected part of the line in Shropshire
The Severn Valley Railway, which runs from Worcestershire to Shropshire, was damaged in 45 places with nine landslips after heavy rain in June.
Development agency Advantage West Midlands (AWM) is giving £500,000 towards track repairs and another £250,000 to refurbish an engine house.
Another £750,000 of European funding is also likely, the agency said.
AWM's chief executive, John Edwards, said the railway is unique attraction for the West Midlands.
"We need to get it up and running again as quickly as possible.
"These floods have been devastating to this attraction, which brings in 250,000 visitors a year, and it is imperative swift action is taken."
The news comes as the area's MPs tabled a Commons motion urging the Government to provide emergency aid for the railway.
The motion, signed by Conservative MPs Philip Dunne (Ludlow) and Peter Luff (Mid-Worcestershire) and Independent MP Dr Richard Taylor (Wyre Forest) says extra help is necessary to allow the line to reopen.
The 16-mile line runs from Kidderminster in Worcestershire to Bridgnorth in Shropshire.