Carver County will receive an additional $400,000 in funding for a Hwy. 212 corridor study from the city of Carver to Norwood Young America.
The funds from the Minnesota Department of Transportation will be added to $900,000 in federal, state and county money already available for the study.
Funds can be used for design study, right of way acquisition and construction, county officials said.
For years a coalition of elected officials, business leaders and others have lobbied to expand the highway and improve its safety.
Just west of Carver the highway switches from four lanes to two lanes, then back to four lanes around Cologne, and then back to two lanes to Norwood Young America.
Commissioner James Ische called the study "a very important step in developing a comprehensive strategy for this segment of highway."
He said Carver County will be the lead agency for the study, and that it's expected to begin in May.