Infrastructure Investment and Jobs Act – Roads, Bridges, and Other Major Projects

Points of Contact:

Bill Viney, Principal, State and Local Advocacy and Appropriations – bviney@bgrdc.com Justin Rzepka, Commerce Practice Co-Head – jrzepka@bgrdc.com Loren Monroe, Principal and State Advocacy and Appropriations Practice Head – loren_monroe@bgrdc.com Fred Turner, Senior Vice President – fturner@bgrdc.com

Roads, Bridges, and Other Major Projects

Topline Funding: $550 billion+ ($110 billion in new funding + $1B for Reconnecting New Communities)
The Infrastructure Investment and Jobs Act (IIJA) includes over $550 billion (B) for roads, bridges, and other major projects, which includes roughly $447B for surface transportation reauthorization funds for roads, bridges, and other major projects, and $110B in new spending. Funds include over $220B authorized for the Highway Trust Fund and additional funding to address aging infrastructure needs. The IIJA includes provisions from the Surface Transportation Reauthorization Act and Surface Transportation Investment Act, used as the baseline text for the overall measure. The funds are to reauthorize existing formulaic and competitive grant programs, including dedicated grant programs to replace and repair bridges and funding for the other major project competitive grant programs. Additionally, the package preserves the 90/10 split of federal highway aid to states. Programmatic funding includes $33.5B for Urbanized Area Formula Grants, $23.1B for the State of Good Repair Grants Program to upgrade rail and bus systems in urbanized areas, $8B for Capital Investment Grants to support new and expanded high-capacity rail and bus service, $4.6B for public transportation in rural area, $3.2B for bus and facility formula grants, $2.3B for low or zero-emission bus grants, and $2.2B for improving transit services for seniors and individuals with disabilities. Overall, surface transportation funding in the IIJA is a 56.4% increase from the previous reauthorization completed in 2015, via the FAST Act ($305B).

PROGRAMS & FUNDING STREAMS
I. HIGHWAY TRUST FUND INCREASED CONTRACT AUTHORITY
Authorizes over $220B for the Highway Trust Fund (HTF) for highway improvement projects across the nation. This includes funds appropriated to states via nine federal-aid formula programs, which includes the establishment of two new programs. Overall, the IIJA increase the HTF contract authority by roughly 32% over FAST Act levels. The programs are listed below.

CARBON REDUCTION PROGRAM
Authorizes $6.4 billion for a new carbon reduction formula program. States may use funds for projects that reduce transportation emissions, including traffic management, public transportation, trails and paths for bicyclists and pedestrians, advanced transportation congestion management technologies, intelligent transportation systems, projects to deploy alternative fuel vehicles, including charging infrastructure, zero emission construction equipment and vehicles and supportive facilities, diesel engine retrofits and projects that reduce transportation emissions at ports. States must develop carbon reduction plans and coordinate and consult with urbanized and rural areas.

Agency of Jurisdiction: Department of Transportation (DOT)

Eligible Grantees: Funds are made available to a project to establish or operate a traffic monitoring, management, and control facility or program, including advanced truck stop electrification systems, the construction, planning, and design of on-road and off-road trail facilities for pedestrians and bicyclists, for advanced transportation and congestion management technologies, and other projects that develop a carbon reduction strategy.

Timing: Immediately.

Federal Cost-share: 65% of funds must be suballocated by population. Additionally, under the newly established Federal Share Flexibility Pilot Program, ten states are authorized flexibility to determine the Federal share on a project, multiple projects, or program basis for projects under this program.

CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM
Authorizes $13.2B to provide funds for transportation projects designed to reduce traffic congestion and improve air quality, particularly in areas of the country that do not attain national air quality standards. Overall, the IIJA increased funds roughly 10% over FAST Act levels.

Agency of Jurisdiction: DOT – Center for Climate Change

Eligible Grantees: States, local governments, and metropolitan planning organizations, for projects in large urbanized areas to advance innovative, integrated, and multimodal solutions to congestion relief in the most congested metropolitan areas.

Timing: Immediately.

Federal Cost-share: Federal cost-share cannot exceed 80% of the total cost of a project. Under the newly established Federal Share Flexibility Pilot Program, ten states are authorized flexibility to determine the Federal share on a project, multiple project, or program basis for projects under this program.

HIGHWAY SAFETY IMPROVEMENT PROGRAM
Authorizes roughly $16B to address leading pedestrian intervals, construction, or installation of features, measures, and road designs to calm traffic and reduce vehicle speeds, installation or upgrades of traffic control devices for pedestrians and bicyclists, roadway improvements that provide separation between pedestrians and motor vehicles or between bicyclists and motor vehicles, and a pedestrian security feature designed to slow or stop a motor vehicle as an eligible highway safety improvement project. Also, creates a Vulnerable Road User (VRU) Assessment, to be integrated into the State Strategic Highway Safety plans. The assessment requires states to gather and assess data on fatalities and serious injuries of vulnerable road users. Overall, the IIJA increases funds 30% over FAST Act levels.

Agency of Jurisdiction: DOT – Federal Highway Administration (FHWA)

Eligible Grantees: States, metropolitan planning organizations (MPOs), and transit agencies.

Timing: Immediately.

Federal Cost-share: Under the newly established Federal Share Flexibility Pilot Program, ten states are authorized flexibility to determine the Federal share on a project, multiple projects, or program basis for projects under this program.

METROPOLITAN PLANNING
Authorizes roughly $2.3B for metropolitan planning organizations to expand considerations of housing planning processes into the metropolitan transportation planning process. Also, funds are authorized to allow for the use of technology to encourage public participation in the planning process. Overall, the IIJA increases funds roughly 33% over FAST Act levels.

Agency of Jurisdiction: DOT – Federal Transit Administration (FTA)

Eligible Grantees: Metropolitan planning organizations (MPOs).

Timing: Immediately.

Federal Cost-share: N/A

NATIONAL HIGHWAY FREIGHT PROGRAM
Authorizes roughly $7.2B for the National Highway Freight program to increase the maximum number of highway miles a State may designate as critical rural freight corridors from 150 to 300 miles, and as critical urban freight corridors from 75 to 150 miles. Also, lower population density states are granted additional flexibility to designate as critical rural freight corridors a maximum of 600 miles of highway, or 25 percent of the primary highway freight system mileage. Overall, the IIJA increases funds roughly 15% over FAST Act levels.

Agency of Jurisdiction: DOT – FHWA

Eligible Grantees: States, metropolitan planning organizations (MPOs), and transit agencies to invest in projects that reduce criteria air pollutants regulated from transportation-related sources.

Timing: Immediately.

Federal Cost-share: Under the newly established Federal Share Flexibility Pilot Program, ten states are authorized flexibility to determine the Federal share on a project, multiple projects, or program basis for projects under this program.

NATIONAL HIGHWAY PERFORMANCE PROGRAM
Authorizes roughly $150B for the National Highway Performance program to include a focus on measures that increase resiliency to the impacts of sea level rise, extreme weather events, flooding, and other natural disasters, such as earthquakes and rockslides. Overall, the IIJA increases funds roughly 27% over FAST Act levels.

Agency of Jurisdiction: DOT – FHWA

Eligible Grantees: States, metropolitan planning organizations (MPOs), and transit agencies to invest in projects that reduce criteria air pollutants regulated from transportation-related sources.

Timing: Immediately.

Federal Cost-share: Under the newly established Federal Share Flexibility Pilot Program, ten states are authorized flexibility to determine the Federal share on a project, multiple projects, or program basis for projects under this program.

PROMOTING RESILIENT OPERATIONS FOR TRANSFORMATIVE, EFFICIENT AND COST SAVING TRANSPORTATION (PROTECT) PROGRAM
Authorizes $7.3B for a new formula and competitive grant program for infrastructure projects that make resilience improvements to address vulnerabilities to current and future weather events and natural disasters and changing conditions, including sea level rise. Funds may be used for highway projects, transit facilities and port facilities.

Agency of Jurisdiction: DOT

Eligible Grantees: State and local governments, metropolitan planning organizations (MPOs), and transit agencies.

Timing: Immediately.

Federal Cost-share: Under the newly established Federal Share Flexibility Pilot Program, ten states are authorized flexibility to determine the Federal share on a project, multiple projects, or program basis for projects under this program. Also, the non-Federal cost share can be reduced to 7% if a state or eligible entity develop a resiliency improvement plan and reduced an additional 3% if the plan is incorporated in the long-range statewide transportation plan or metropolitan transportation plan.

RAILWAY-HIGHWAY CROSSING PROGRAM
Authorizes $1.23B to increase funds for the DOT’s coordinated efforts to prevent or reduce trespasser deaths along railroad rights-of-way and at or near railway highway crossings. This includes funds for projects to reduce pedestrian fatalities and injuries from trespassing at grade crossings. Overall, the IIJA increases funds roughly 5% over FAST Act levels.

Agency of Jurisdiction: DOT – FHWA

Eligible Grantees: States, metropolitan planning organizations (MPOs), and transit agencies to invest in projects that reduce criteria air pollutants regulated from transportation-related sources.

Timing: Immediately.

Federal Cost-share: Increases Federal cost-share eligibility from 90 to 100%.

SURFACE TRANSPORTATION BLOCK GRANT (STBG) PROGRAM
Authorizes $72B for the STBG program, which includes funds to increase the minimum percentage of Transportation Alternatives Program (TAP) population requirements, wildlife crossing structures, electric vehicle charging infrastructure and vehicle-to-grid infrastructure, installation and deployment of intelligent transportation technologies, projects that facilitate intermodal connections between emerging transportation technologies, resilience features, cybersecurity protections, and rural barge landings, docks, and waterfront infrastructure projects, and the construction of certain privately-owned ferry boats and terminals. Overall, the IIJA increases funds roughly 15% above FAST Act levels.

Agency of Jurisdiction: DOT – FHWA

Eligible Grantees: States, metropolitan planning organizations (MPOs), and transit agencies.

Timing: Immediately.

Federal Cost-share: Under the newly established Federal Share Flexibility Pilot Program, ten states are authorized flexibility to determine the Federal share on a project, multiple projects, or program basis for projects under this program.

II. NEW SPENDING
INCREASED CONTRACT AUTHORITY
Authorizes an additional $55.46B to existing surface transportation programs for states and local government discretionary funds.

Agency of Jurisdiction: DOT

Eligible Grantees: State and local governments, metropolitan planning organizations (MPOs), and transit agencies.

Timing: Immediately.

Federal Cost-share: N/A

BRIDGE GRANT PROGRAM
Authorizes roughly $37B to supports increased investment in the EPW Bridge Investment Program, a competitive grant program to assist the repair and replacement of deficient and outdated bridges and ease the national bridge repair backlog. Also, includes funding that supports a bridge formula program to help support the $125 billion bridge repair backlog (as estimated by the American Society of Civil Engineers).

Agency of Jurisdiction: DOT

Eligible Grantees: States, metropolitan planning organizations (MPOs), and transit agencies.

Timing: Immediately.

Federal Cost-share: N/A

REBUILDING AMERICAN INFRASTRUCTURE WITH SUSTAINABILITY AND EQUITY (RAISE) GRANTS PROGRAM
Authorizes $7.5B to increase investments that will boost funding for the RAISE (formerly BUILD) grant program, to supports surface transportation projects of local and/or regional significance.

Agency of Jurisdiction: DOT

Eligible Grantees: States and local governments, federally recognized tribes, MPOs, and transit agencies.

Timing: Immediately.

Federal Cost-share: Federal cost-shares cannot exceed 80%.

NATIONAL INFRASTRUCTURE PROJECT ASSISTANCE GRANT PROGRAM
Authorizes $5B to support multi-model, multi-jurisdictional projects of national or regional significance.

Agency of Jurisdiction: DOT

Eligible Grantees: A State or group of states, MPOs, and units of local governments.

Timing: Immediately.

Federal Cost-share: Federal cost-shares cannot exceed 60%.

INFRASTRUCTURE FOR REBUILDING AMERICA (INFRA) GRANT PROGRAM
Authorizes a total of $10.9B, which includes an additional $3.2B to support an increase over baseline funding to the INFRA grant program, which supports highway and rail projects of regional and national economic significance.

Agency of Jurisdiction: DOT – Build America Bureau

Eligible Grantees: A State or group of states, MPOs serve an urbanized area with a population of less than 200,000 individuals, units of local governments, and federally recognized tribes.

Timing: Immediately.

Federal Cost-share: Federal cost-shares cannot exceed 60%.

APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM FORMULA PROGRAM
Authorizes $1.25B for the Appalachian Regional Commission (ARC) to fund programs including $25M for the Appalachian Regional Energy Hub Initiative, and $100M for the High-Speed Broadband Deployment initiative. The Appalachian Development Highway System consists of a series of highway corridors connecting 13 Appalachian states, from New York to Alabama. These funds are included to improve economic development needs in the region.

Agency of Jurisdiction: DOT – Appalachian Regional Commission (ARC)

Eligible Grantees: States with one or more counties within the Appalachian region.

Timing: Immediately.

Each eligible state cannot receive less than $10M for each of the fiscal years 2022-2026.

Federal Cost-share: N/A

NOTES: Clarifies that any federal funds transferred to Alaska’s Denali Commission (Alaska) are no longer be subject to any requirements (including regulatory) previously attached to those funds.

SURFACE TRANSPORTATION PRIVATE ACTIVITY BONDS PROGRAM
Authorizes $500M for funds that increase the current cap on these bonds from $15 billion to $30 billion. This increase will allow state and local governments to enter into additional public-private partnerships to supplement future surface transportation projects with private investment.

Agency of Jurisdiction: DOT – Build America Bureau

Eligible Grantees: State and local governments, and federally recognized tribes.

Timing: Immediately.

Federal Cost-share: N/A

UNIVERSITY TRANSPORTATION CENTERS PROGRAM
Authorizes $95M, to supports the University Transportation Centers (UTC) Program to advances the state-of-the-art in transportation research and technology.

Agency of Jurisdiction: DOT – UTC

Eligible Grantees: University Transportation Centers.

Timing: Immediately.

Federal Cost-share: N/A

CULVERT REMOVAL, REPLACEMENT, AND RESTORATION PROGRAM
Authorizes $1B, to provide grants to states for the removal, replacement, and restoration of culverts to address flow of water through roads, bridges, railroad tracks, and trails.

Agency of Jurisdiction: DOT

Eligible Grantees: State and local governments, and federally recognized tribes.

Timing: Immediately.

Federal Cost-share: Federal cost-shares cannot exceed 80%.

RECONNECTING COMMUNITIES PILOT PROGRAM
In addition to the $110B new spending, the IIJA authorizes roughly $1B to establish a reconnecting communities pilot program, for projects that remove barriers to opportunity caused by legacy infrastructure. These funds are authorized to study the feasibility and impacts of removing, retrofitting, or mitigating an existing transportation facilities that create barriers to mobility, access, or economic development, and for construction funds to carry out a project to remove, retrofit or mitigate an eligible facility and, if appropriate, to replace it with a new facility.

Agency of Jurisdiction: DOT

Eligible Grantees: Funds are made available to a limited access highway, viaduct, or any other principal arterial facility that creates a barrier to community connectivity, including barriers to mobility, access, or economic development, due to high speeds, grade separations, or other design factors.

Timing: Immediately.

Federal Cost-share: Federal cost-shares cannot exceed 80%.