Amtrak will keep its two state-subsidized trains running at least through the end of the year.
The railway agreed to continue its Chicago-Toronto and Chicago-Grand Rapids lines at least through Dec. 31.
State law prohibits Amtrak from receiving more than $5.7 million a year from the state to operate the two lines.
But Amtrak had threatened to end its Michigan services unless the state paid it $7.1 million. The railroad says it needs the extra money to offset higher costs.
The state Senate has passed a transportation budget bill that includes language to lift the cap for Amtrak for the next fiscal year. The bill is now before a House committee.