Last week, the Department of Transportation (DOT) announced nearly $60 billion of funding
available to states through DOT formula grant programs in fiscal
year (FY) 2023. States may use these funds, authorized under the Bipartisan Infrastructure Law, to support
critical infrastructure, including roads, bridges, and
environmental and safety improvements. The FY2023 grant funds
represent a substantial increase from FY2021. In particular, states
will see an increase in grant funds for highway and bridge
projects:
|
Significantly Increased Formula Program |
Percentage increase over FY21 |
|
391% |
|
|
146% |
|
|
New |
|
|
Highway Safety Improvement Program |
26% |
|
Metropolitan Planning Program |
25% |
|
Carbon Reduction Program |
New |
|
Promoting Resilient Operations for Transformative, Efficient, and Cost-Saving Transportation Formula ("PROTECT") Program |
New |
|
National Highway Performance Program |
20% |
|
Surface Transportation Block Grant Program |
16% |
The Bipartisan Infrastructure Law also created three new programs
to support carbon reduction, make transportation infrastructure
more resilient to future weather events and other natural
disasters, and promote use of electronic vehicles.
Companies interested in working on contracts under these grants should monitor infrastructure funding at the federal and state level to determine where, and how, it creates business opportunities. We are continuing to closely tracking the implementation of the Bipartisan Infrastructure Law to help clients navigate the unprecedented levels of infrastructure funding taking place this year, and over the next four years.
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