Infrastructure Law: $1.2 billion Now Available In Combined 3-in-1 NOFO

The Multimodal Project Discretionary Grant (MPDG) program Notice of Funding Opportunity combines the National Infrastructure Project Assistance grants program (Mega), the Nationally Significant Multimodal Freight and Highways Projects grant program (INFRA), and the Rural Surface Transportation Grant program (Rural) into a single application. This makes it easier for one, two, or all three of the Bipartisan Infrastructure Law (IIJA) programs listed here. The application for this program is May 23, 2022 at 11:59 PM Eastern Standard Time. Here is some information on the MPDG’s programs:

National Infrastructure Project Assistance Grant Program (Mega):

  • Provides funding for megaprojects that will likely generate national, regional, economic, mobility, or safety benefits.
  • $1 billion of FY 2022 is available.
  • 50% of the funding will be awarded to projects greater than $500 million and 50% will be awarded to projects between $100 million and $500 million.
  • Max 60% grant cost share, Max 80% federal
  • Eligible Applicants:
    o   A state, or group of states
    o   A metropolitan planning organization
    o   A unit of local government
    o   A political subdivision of a state
    o   A special purpose district or port authority with a transportation function, including a port authority.
    o   A tribal government or a group of tribal governments.
    o   A partnership between Amtrak and any number of the groups listed above.
    o   A combination of any number of entities listed above.
  • Project Requirements:
    o   Generates national or regional economic mobility, or safety benefits.
    o   Cost-effective
    o   In significant need of federal funding
    o   With respect to related non-federal financial requirements, one or more stable and dependable funding or financial sources are available:
    - To construct, operate, and maintain the project.
    - To cover cost increases.
    o   The Applicant have or will have the sufficient legal, financial, and technical capacity to carry out the project.

Nationally Significant Multimodal Freight and Highways Projects grant program (INFRA):

  • Awards competitive grants for multimodal freight and highway projects of national or regional significance to improve the safety, efficiency, and reliability of the movement of freight and people in and across rural and urban areas.
  • Approximately $1.55 billion in FY 2022 is available.
  • Maximum of 85% of the funding will go towards projects larger than $100 million and a minimum of 15% of the funding will go towards projects smaller than $100 million (12 states have a different, lower threshold for large vs. small between $56 million and $95 million instead of the $100 million threshold for the other states).
  • There will be a $25 million award minimum for projects larger than $100 million and $5 million award minimum for projects smaller than $100 million (different for the 12 states as listed above)
  • Max 60% grant cost share, Max 80% federal (11 states have a higher, sliding scale max federal share between 80% and 95%)
  • Eligible Applicants:
    o   A state, or group of states
    o   A metropolitan planning organization that serves more than 200,000 individuals (as stated by the Bureau of the Census)
    o   A unit of local government or a group of local governments
    o   A political subdivision of a state or local government
    o   A special purpose district or port authority with a transportation function, including a port authority.
    o   A Federal land management agency that applies jointly with a state or group of states.
    o   A tribal government or a group of tribal governments.
    o   A multistate corridor organization.
    o   A multistate or multijurisdictional group of entities described above.
  • Project Requirements:
    o   Generates national or regional economic mobility, or safety benefits.
    o   Cost-effective.
    o   Contributes to one or more 23 U.S.C. 150 goals.
    o   The project is based on the results preliminary engineering.
    o   In significant need of federal funding.
    o   With respect to related non-federal financial requirements:
    - One or more stable and dependable funding or financial sources are available to construct, operate, and maintain the project.
    - Contingency amounts are available to cover unanticipated cost increases.
    o   Reasonably expected to begin construction 18 months from obligation.
    o   The Applicant have or will have the sufficient legal, financial, and technical capacity to carry out the project.

Rural Surface Transportation Grant program (Rural):

  • Provides funds 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.
  • $300 million in FY 2022 is available.
  • $25 million award minimums will be given for $270 million of the $300 million available and there is no award minimum for the other $30 million.
  • Max 80% grant cost share, Max 100% federal (Appalachian Development Highway System Projects and Denali Access Projects can go to 100% Grant)
  • Eligible Applicants:
    o   A state
    o   A regional transportation planning organization
    o   A unit of local government
    o   A tribal government or a group of tribal governments
    o   A multijurisdictional group of entities described above.
  • Project Requirements:
    o   Generates national or regional economic mobility, or safety benefits.
    o   Cost-effective.
    o   Contributes to one or more 23 U.S.C. 150 goals.
    o   The project is based on the results preliminary engineering.
    o   Reasonably expected to begin construction 18 months from obligation.

Here is a link to the Notice of Funding Opportunity: https://www.transportation.gov/sites/dot.gov/files/2022-03/FY22%20Multimodal%20Project%20Discretionary%20Grant%20-%20NOFO_final_0.pdf