Biden administration doles out $2.9B in infrastructure grants to states, cities

The Department of Transportation (DOT) will soon disperse $2.9 billion in grants for state and local infrastructure projects.

Transportation Secretary Pete Buttigieg on Wednesday said the funds, a slice of the bipartisan $1 trillion infrastructure bill President Biden signed into law in November, are intended to support projects such as highway, bridge, freight, port and public transportation extensions and repairs.

“President Biden’s Bipartisan Infrastructure Law is a once-in-a-generation opportunity to fix our outdated infrastructure and invest in major projects for the future of our economy,” Buttigieg said in a statement. “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.”

State, regional and local governments will be able to apply for three separate grants by submitting one application, reducing the burden for applicants.

The National Infrastructure Project Assistance program will receive $1 billion in its first year and fund major projects “that are too large or complex for traditional funding programs.” It will award half of the funding to projects greater than $500 million and the other half to those more than $100 million but less than $500 million.

The Infrastructure for Rebuilding America program, an existing program, will fund smaller-scale highway, freight and railway projects intended to “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 Rural Surface Transportation Grant program is exclusive to rural communities in hopes to increase connectivity and generate economic growth. It will allocate up to $300 million in grants this year.

DOT said it will prioritize applications for projects that improve safety, economic competitiveness, equity and climate and sustainability. Applications are due May 23. Applicants can secure grants for multiple years.

The Biden administration is hoping that these projects can help in the fight against inflation, largely caused by supply-chain issues. “This funding will help enable more communities to build vital infrastructure projects that also strengthen supply chains and reduce costs for American families,” the administration wrote in its statement.

Consumer prices rose 0.8 percent in February and 7.9 percent over the last year, according to data released by the Labor Department earlier this month. Annual inflation jumped to the highest rate since 1982 in February.