DOT announces $4.2 billion in infrastructure grants

On Monday, the Department of Transportation announced the winners of $4.2 billion in grants flowing from the Biden Administration’s infrastructure legislative crown jewel.

“With this latest round of awards, dozens of major and much-needed projects – projects that are often difficult to fund through other means are getting the long-awaited investments they need to move forward.”

“Thanks to the Bipartisan Infrastructure Law, the Biden-Harris administration is carrying out ambitious, complex transportation projects that will shape our country’s infrastructure for generations to come,” said U.S. Transportation Secretary Pete Buttigieg. “With this latest round of awards, dozens of major and much-needed projects – projects that are often difficult to fund through other means are getting the long-awaited investments they need to move forward.”

Bloomberg News

The funding is coming through two major discretionary grant programs, the National Infrastructure Project Assistance for “mega” sized projects, and the Infrastructure for Rebuilding America program.

The forty-four recipients include bridges, ports, and highways. Projects in Phoenix, Ariz., Chicago, Ill., and Providence, R.I. received awards from both programs.

The largest grant of $472.3 million is going to the Massachusetts Bay Transportation Authority for the North Station Renovation and Draw 1 Bridge Replacement project in Boston.

“This $472 million investment is a game-changer for the thousands of passengers who pass through North Station every day,” said Senator Elizabeth Warren D – Mass., via a statement.

“Massachusetts leaders worked together to secure the largest ever federal award for the T, and I won’t stop fighting to bring home even more investment to improve transit across the Commonwealth.”

The money will be used to improve the bridge that funnels Amtrak intercity passenger rail lines and four separate MBTA regional rails into North Station, a link troubled with frequent delays.

In July, the MBTA issued more than $1 billion of senior sales tax bonds as it confronts the same ridership losses afflicting other public transit agencies.

The bonds were rated AAA by Fitch Ratings and Kroll Bond Rating Agency, and AA-plus by S&P Global Ratings. The deal included refunding $377 million of outstanding Build America Bonds using the extraordinary redemption provision.

The Philadelphia Regional Port Authority netted $217.2 million in grants to help fund the SouthPort Berth Phase 2 in Philadelphia.

Earlier this month the PRPA published a new 15-year strategic plan to expand port operations through the PhilaPort agency that is “projected to generate over $2.84 billion in new business revenue and nearly $170 million in new state and local taxes.”

Moody’s Ratings gave Pennsylvania a credit upgrade on Oct. 8 to Aa2 from Aa3, citing sound fiscal management, balanced budgets, and steady economic growth.

The largest INFRA grant of $196 million is going to the Michigan Department of Transportation to replace the River Raisin Bridge and six other existing structures including two bridges over class I railroad lines.

Michigan has been fixing roads through its bond-financed, five-year, Rebuilding Michigan program launched in 2020 with $3.5 billion in state funding aimed at 122 major road projects across the state. The bonds are supported by existing gas tax revenue.

DOT’s most recent announcement also includes dispersals to the Iowa Department of Transportation, the Mississippi Department of Transportation, and the Florida Department of Transportation.