What the IIJA Funds

July 1, 2022

As we continue to breakdown what’s in the bipartisan Infrastructure Investment and Jobs Act (IIJA), our focus turns to funding. There’s a lot to examine here, as you can imagine, so we are breaking this into two parts. In case you missed it, last week’s installment reported on the Build America, Buy America Act and the Justice40 Initiative, and in our first breakdown, we reported on where the $1.2 trillion goes under the IIJA. The latter was broad when it came to money. Here, we’re specifically looking at the funding regarding roads, bridges, and railways.

Funding (Part I)


Below are additional transportation-related programs that may be of interest to local governments: 

  • Capital Investment Grants Program: IIJA guarantees $8 billion and authorizes $15 billion more in future appropriations. This grant program funds transit capital investments (heavy rail, commuter rail, light rail, streets cars, and bus rapid transit).
  • Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Discretionary Grant Program: IIJA increases funding for the program by $15 billion with half of that in guaranteed appropriations. It’s a competitive grant program which provides funding for road, rail, transit, and other surface transportation. Selection criteria includes safety, sustainability, and equity among others.
  • National Infrastructure Project Assistance (Megaprojects or MEGA): IIJA provides $5 billion in competitive grants for states, local, governments, tribes, and other related organizations. This program provides funding for megaprojects that will likely generate national, regional, economic, mobility, or safety benefits.
  • Infrastructure for Rebuilding America (INFRA) Grant Program: IIJA provides $10.9 billion over 5 years for competitive grants including highway or bridge projects to add capacity or improve mobility, intermodal/freight projects, and rail-highway grade crossing separation.
  • Rural Surface Transportation Grant Program (Rural): IIJA provides $1 billion in competitive grants to states, local governments, tribes, and regional transportation planning organizations.
  • Safe Streets and Roads for All: $5 billion in competitive grants to support local initiatives to prevent death and serious injury on roads and streets, commonly referred to as “Vision Zero” or “toward Zero Deaths” initiatives. There are 2 types of grants: an Action Plan Grant, and an Implementation Grant.
  • Promoting Resilient Operations for Transformative, Efficient and Cost-Saving Transportation (PROTECT) Grant: IIJA provides $1.4 billion in competitive grants to states, metropolitan organizations, local governments, special purpose districts, tribes, and federal land management agency.
  • Reconnecting Communities Pilot Program: IIJA provides $500 million over 5 years for planning grants to carry out feasibility studies on the impact of removing or mitigating physical infrastructure barriers, and capital construction grants to owners of eligible facilities.
  • Railroad Crossing Elimination Grant Program: IIJA provides $3 billion in competitive grants for the mitigation or elimination of hazards at railway-highway crossing.
  • National Highway Performance Program: IIJA provides $148 billion in formula grants to states and the District of Columbia. This program provides support for conditions and performance on highways and constructs new facilities.
  • Surface Transportation Block Grant Program: IIJA provides $72 billion in formula grants to states and the District of Columbia. This program promotes flexibility in state and local transportation decision and provides flexible funding to best address state and local transportation needs.
  • Bridge Formula Program: IIJA provides approximately $26.68 billion in formula grants to states and the District of Columbia and Puerto Rico. This program provides funding for bridge replacement, rehabilitation, preservation, protection, or construction projects on public roads.
  • Congestion Mitigation & Air Quality Program: IIJA provides $13.2 billion in formula grants to states and the District of Columbia. It provides funding for transportation projects and programs to help meet the requirements of the Clean Air Act, and to reduce congestion and improve air quality for areas that do not meet the National Ambient Air Quality.

We are just scratching the surface on this topic. Stay tuned as we continue to breakdown the bipartisan infrastructure law. Next week, we will dive deeper with Part II of our focus on funding. 

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Source: GFOA.org

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