USDOT to Provide $2.9B for Infrastructure Projects

“President Biden’s Bipartisan Infrastructure Law is a once-in-a-generation opportunity to fix our outdated infrastructure and invest in major projects for the future of our economy,” Transportation Secretary Pete Buttigieg said. “Until now, we had limited ability to make awards beyond a certain level, or to support projects with funding from multiple federal grant programs.”

The U.S. Department of Transportation (USDOT) reported on March 23 that is offering a total of $2.9 billion through three discretionary grant programs supporting major infrastructure projects; it has issued a combined Notice of Funding Opportunity (NOFO) that will make it easier to apply to one or more programs with a single application and common set of criteria.

“Combining three major discretionary grant programs into one Multimodal Projects Discretionary Grant opportunity reduces the burden for state and local applicants, and increases the pipeline of ‘shovel-worthy’ projects that are now possible because of the Bipartisan Infrastructure Law,” USDOT said. (Download joint NOFO below.)

The three programs are:

1. National Infrastructure Project Assistance (MEGA) program: Created by the Bipartisan Infrastructure Law, MEGA will support “major projects that are too large or complex for traditional funding programs,” USDOT said. “The program will provide grants on a competitive basis to support multijurisdictional or regional projects of significance that may also cut across multiple modes of transportation. Eligible projects could include highway, bridge, freight, port, passenger rail, and public transportation projects of national and regional significance. These could be bridges or tunnels connecting two states; new rail and transit lines that improve equity and reduce emissions; and freight hubs integrating ship, train and truck traffic while improving environmental justice.” USDOT reported that it will award 50% of funding to projects valued at greater than $500 million, and 50% to projects valued at greater than $100 million but less than $500 million. The program is slated to receive up to $1 billion in 2022 and be able to provide multi-year funding to projects.  

2. Infrastructure for Rebuilding America (INFRA) program: This existing competitive program is expected to see a more than 50% increase in funding this year due to the Bipartisan Infrastructure Law, according to USDOT. Grants fund highway, multimodal freight and rail projects that “improve safety, generate economic benefits, reduce congestion, enhance resiliency, and hold the greatest promise to eliminate supply chain bottlenecks and improve critical freight movements,” the department said. “Last year, DOT received over $10 billion of project applications, but could only fund around $1 billion of projects. … The Bipartisan Infrastructure Law provides approximately $8 billion for INFRA over 5 years, of which approximately $1.55 billion will be made available through this NOFO.”

3. Rural Surface Transportation Grant Program (RURAL): Created by the Bipartisan Infrastructure Law, RURAL will support projects that improve and expand surface transportation infrastructure in rural areas. Eligible are highway, bridge and tunnel projects that “help improve freight [and] safety, and provide or increase access to agricultural, commercial, energy or transportation facilities that support the economy of a rural area,” USDOT said. “This year alone, DOT will award up to $300 million in grants through the rural program—part of the $2 billion included in the Bipartisan Infrastructure Law over five years.” 

The USDOT said it will make awards consistent with each grant program’s statutory language and focus on supporting projects that “improve safety, economic competitiveness, equity, and climate and sustainability.” It also noted that the three programs will continue to receive support from USDOT, including the rural-focused ROUTES program team as well as the Build America Bureau.

The application deadline is 11:59 pm EDT on May 23, 2022. For more details, visit the USDOT website.

“President Biden’s Bipartisan Infrastructure Law is a once-in-a-generation opportunity to fix our outdated infrastructure and invest in major projects for the future of our economy,” Transportation Secretary Pete Buttigieg said. “Until now, we had limited ability to make awards beyond a certain level, or to support projects with funding from multiple federal grant programs. Under this approach and with a major infusion of new funding, we have the capacity to green-light more transformational projects that will create good-paying union jobs, grow the economy, and make our transportation system safer and more resilient.”