U.S. Transportation Secretary Pete Buttigieg announced Wednesday that the U.S. Department of Transportation will provide $2.9 billion in funding for major infrastructure projects through a Notice of Funding Opportunity for three major discretionary grant programs.
By rolling the three grant programs into one Multimodal Projects Discretionary Grant opportunity, the DOT would reduce the burden for state and local applicants and increase the pipeline of shovel-ready projects now possible because of the Bipartisan Infrastructure Law (BIL), the department said.
“President Biden’s Bipartisan Infrastructure Law is a once-in-a-generation opportunity to fix our outdated infrastructure and invest in major projects for the future of our economy,” Buttigieg said.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.”
The investments will create jobs, grow the economy, reduce emissions, improve safety, make transportation more sustainable, and expand transportation options in rural America and other underserved communities, the department said.
Combining the programs – the National Infrastructure Project Assistance (MEGA) program, the Infrastructure for Rebuilding America (INFRA) program, and the Rural Surface Transportation Grant Program (RURAL) – will make it easier for communities to apply to one or more program with only a single application. The DOT said it will make awards under the grant programs consistent with each grant’s statutory language and will focus on supporting projects that improve safety, economic competitiveness, equity, and climate and sustainability.
The National Infrastructure Project Assistance (MEGA) program was created in the BIL to fund major projects too large or too complex for traditional funding programs and supports multijurisdictional or regional projects of significance that may also cut across multiple modes of transportation. The DOT said it will award 50 percent of the funding to projects costing more than $500 million and 50 percent to projects costing between $100 and $500 million. The program will receive up to $1 billion this year.
The Infrastructure for Rebuilding America (INFRA) program is an existing competitive program that funds freight and rail projects that improve safety, generate economic benefits, reduce congestion, enhance resiliency, and hold the greatest promise to eliminate supply chain. The Bipartisan Infrastructure Law provides approximately $8 billion for INFRA over five years, of which approximately $1.55 billion will be made available through this NOFO.
The Rural Surface Transportation Grant Program (RURAL) was created to support projects improving and expanding the surface transportation infrastructure in rural areas. Eligible projects include highway, bridge, and tunnel projects that help improve freight safety and provide or increase access to agricultural, commercial, energy, or transportation facilities supporting a rural area. DOT will award up to $300 million in grants through the rural program in 2022.
The deadline for applications is 11:59 pm EDT on May 23, 2022.