Fresh federal funding on tap for major infrastructure projects
2 min read
States and local governments have until the end of August to apply for up to $5.5 billion in newly available funding under a trio of major infrastructure programs that the White House opened up Tuesday.
The announcement comes as the Biden administration kicks off a national tour highlighting infrastructure investments, a cornerstone of President Joe Biden’s reelection campaign.
It marks the second year of funding for the programs, dubbed the Mega, Infra, and Rural grants, which were created under the $1.2 trillion Infrastructure Investment and Jobs Act enacted in 2021.
Unlike the hundreds of other new grant programs created under the IIJA, the U.S. Department of Transportation has combined the application process for the three major programs, to help streamline the effort for applicants.
“The funds in these three programs are supporting transformational infrastructure projects across the nation,” Transportation Secretary Pete Buttigieg said in a statement. “Using a combined process to reduce paperwork, we are pleased to open this new round of funding for applications and look forward to hearing from project sponsors around the country seeking funds to help strengthen their communities through infrastructure.”
Buttigieg was set to travel to South Carolina Tuesday as part of the Investing in America tour that has administration officials fanning across the country to highlight infrastructure investments and other Biden administration policies.
“We’re going to be on the road,” Buttigieg told Time magazine last week. “We’re going to be drawing attention to this good work. The story is not going to tell itself.”
The newly opened funding opportunities include $1.8 billion for the National Infrastructure Project Assistance program, billed as Mega grants, which supports large complicated projects that “are difficult to fund by other means” and are likely to generate national benefits, the White House said in a release. The law requires 50% of the funds be spent on projects costing $500 million or above, and 50% for projects costing between $100 million and $500 million.
Another $3.1 billion will go to the Infrastructure for Rebuilding America, or Infra, program, which awards competitive grants to multimodal freight and highway projects of national significance that improve the movement of freight or people.
The Rural Surface Transportation Grant program will allocate $675 million to surface transportation projects in rural areas that support the local economy.
Applicants have until Aug. 21 to apply.
Last year, the administration announced $1.2 billion in Mega grants for nine projects, including the Hudson Tunnel. Buttigieg called the program “wildly competitive,” with 138 applicants and only nine winners.
The DOT also awarded $1.5 billion for 26 projects through the INFRA program and $274 million for 12 projects through the Rural grant program.
Also this week the Federal Transit Administration announced 130 awards totaling $1.7 billion for low-emission buses across the country. Among the transit agencies that won funding: The cash-strapped Washington Metropolitan Area Transit Authority, which saw the largest award of $104 million to support its plan to transit to a 100% zero-emissions bus fleet. Seattle’s King County Metro Transit received $33.5 million and the Ohio Department of Transportation got $29.3 million.
