WASHINGTON — U.S. Department of Transportation (DOT) Secretary Pete Buttigieg has announced that $2.9 billion in funding is now available for major infrastructure projects through a combined Notice of Funding Opportunity (NOFO) under President Biden’s Bipartisan Infrastructure Law.
According to a DOT news release, “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.”
The DOT says the investments will create good-paying jobs, grow the economy, reduce emissions, improve safety, make the nation’s transportation more sustainable and resilient and expand transportation options in rural America and other underserved communities.
“President Biden’s Bipartisan Infrastructure Law is a once-in-a-generation opportunity to fix our outdated infrastructure and invest in major projects for the future of our economy,” Buttigieg said.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 National Infrastructure Project Assistance (MEGA) program was created in the Bipartisan Infrastructure Law to fund major projects that are too large or complex for traditional funding programs.
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. DOT will award 50 percent of funding to projects greater than $500 million in cost, and 50 percent to projects greater than $100 million but less than $500 million in cost.
The program will receive up to $1 billion this year alone and be able to provide multi-year funding to projects.
The Infrastructure for Rebuilding America (INFRA) program is an existing competitive program that will see a more than 50 percent increase in this year’s funding due to the Bipartisan Infrastructure Law.
Projects will improve safety, generate economic benefits, reduce congestion, enhance resiliency and hold the greatest promise to eliminate supply chain bottlenecks and improve critical freight movements, according to the DOT. Last year, DOT received more than $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.
The Rural Surface Transportation Grant Program (RURAL) was created in the Bipartisan Infrastructure Law and will support projects to improve and expand the surface transportation infrastructure in rural areas to increase connectivity, improve the safety and reliability of the movement of people and freight, and generate regional economic growth and improve quality of life.
Eligible projects for Rural grants include highway, bridge and tunnel projects that help improve freight, safety, and provide or increase access to an agricultural, commercial, energy or transportation facilities that support the economy of a rural area.
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.
“Putting these three programs under a single NOFO makes it easier for communities to apply to one, two or three major discretionary grant programs with a single application and common set of criteria,” according to the DOT.
The DOT will make awards under the three grant programs consistent with each grant program’s statutory language and will focus on supporting projects that improve safety, economic competitiveness, equity, and climate and sustainability.
Also, a single solicitation will also help the DOT get a more comprehensive view of projects in development nationwide. The three programs under this combined NOFO will continue to receive support from the DOT, including the rural-focused ROUTES program team as well as the Build America Bureau.
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