Inside208

New State Transportation Economic Development Grant Targets Cities and Villages with Populations Less Than 10,000

Posted on February 15, 2019 by Dene Westbrook

On December 26, 2018, the Governor signed Public Act 473 of 2018, establishing the Community Infrastructure Fund (CIF).  The new law amends the act that established the Transportation Economic Development Fund (TEDF) to include the CIF as a new category of TEDF funding known as “TEDF, Category B.”  The act provides $3 million per year through Fiscal Year (FY) 2023 to be allocated for road improvements in cities and villages with a population of 10,000 or fewer.

The following guidelines apply:

  • Eligible project type:  Reconstruction, replacement, rehabilitation or capital preventative maintenance of city or village streets.
  • Maximum grant:  The maximum annual grant is $250,000.
  • Minimum match:  50/50—the requested grant amount must be matched at least equally by the requesting agency.
  • Geographic distribution will be used as one of the criteria for grant selection, and eligible agencies may apply for a grant in consecutive fiscal years.
  • Grant applications for roadwork associated with other infrastructure projects, such as water and sewer projects, will be given additional consideration during review.  However, the costs associated with the other infrastructure work are not eligible for Category B funding.
  • Applications for projects that are multi-jurisdictional in nature, even if the other jurisdiction is not using, nor is eligible for Category B funding, will be given extra consideration during review.
  • Applications for projects on roadways that are not eligible for funding through the Federal Highway Administration or TEDF Category D, will be given additional consideration.
  • Finally, for this round, additional consideration will be given to applications for projects that can be completed by the end of the 2019 construction season.  If a grant is awarded on that basis and not started by a date allowing for completion during 2019, the grant may be rescinded.

In order to allow for grant recipients to better plan for projects associated with a grant, applications are now being accepted for FY 2019 and FY 2020.  Any grant approved for FY 2020 funding will be awarded contingent on continued appropriations by the legislature.  Only one application will be accepted per agency, but you may include up to five separate roadways on the application.  The total request may not exceed $250,000.

Category B application instructions and form may be found at www.michigan.gov/TEDFApplications must be received by Friday, April 5, 2019 to be considered for funding.

John LaMacchia is the Assistant Director of State and Federal Affairs for the League handling transportation, infrastructure, energy and environment issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

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