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US DOT Details New Infrastructure Act Impact on Michigan

Posted on November 19, 2021 by Dene Westbrook

The US Department of Transportation released an analysis today of how the recently signed Infrastructure Investment and Jobs Act would impact the State of Michigan for the transportation-specific programs outlined in that bill.

The $1.2 trillion IIJA included the necessary transportation reauthorization of the former FAST Act and is estimated to offer Michigan a more than 30% increase in our annual federal road and bridge formula allocation.  Michigan will receive approximately $7.8 billion over the next five years from the transportation reauthorization components of the IIJA.  The 30% increase will bring in nearly $500 million in additional road and bridge funding annually to the state, not including any of the $100-200 billion of competitive grant opportunities that Michigan will be able to apply for.

The attached outline from US DOT also highlights the formula funding that Michigan is expected to receive in program areas like motor vehicle, commercial vehicle, bicyclist, and pedestrian safety, public transportation, electric vehicle infrastructure, Amtrak passenger rail expansions and freight rail safety and improvements, and airport infrastructure investments.

Competitive grant opportunities will also be available to state and local governments:

  • Safe Streets for All ($6B, new) – This program will provide funding directly to local and tribal governments to support their efforts to advance “vision zero” plans and other improvements to reduce crashes and fatalities, especially for cyclists and pedestrians.
  • Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grants ($15B, expanded) – RAISE grants support surface transportation projects of local and/or regional significance.
  • Infrastructure for Rebuilding America (INFRA) Grants ($14B, expanded) – INFRA grants will offer needed aid to freight infrastructure by providing funding to state and local government for projects of regional or national significance. The BIL also raises the cap on multimodal projects to 30% of program funds.
  • Federal Transit Administration (FTA) Low and No Emission Bus Programs ($5.6B,expanded) – BIL expands this competitive program which provides funding to state and local governmental authorities for the purchase or lease of zero-emission and low-emission transit buses as well as acquisition, construction, and leasing of required supporting facilities.
  • FTA Buses + Bus Facilities Competitive Program ($2.0B, expanded) – This program provides competitive funding to states and direct recipients to replace, rehabilitate, and purchase buses and related equipment and to construct bus-related facilities including technological changes or innovations to modify low or no emission vehicles or facilities.
  • Capital Investment Grants (CIG) Program ($23B, expanded) – The BIL guarantees $8 billion, and authorizes $15 billion more in future appropriations, to invest in new highcapacity transit projects communities choose to build.
  • Federal Aviation Administration (FAA) Terminal Program ($5B, new) – This discretionary grant program will provide funding for airport terminal development and other landside projects.
  • MEGA Projects ($15B, new) – This new National Infrastructure Project Assistance grant program will support multi-modal, multi-jurisdictional projects of national or regional significance.
  • Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation (PROTECT) Program ($8.7B, new) – PROTECT will provide $7.3 billion in formula funding to states and $1.4 billion in competitive grants to eligible entities to increase the resilience of our transportation system. This includes funding for evacuation routes, coastal resilience, making existing infrastructure more resilient, or efforts to move infrastructure to nearby locations not continuously impacted by extreme weather and natural disasters.
  • Port Infrastructure Development Program ($2.25B, expanded) – BIL will increase investment in America’s coastal ports and inland waterways, helping to improve the supply chain and enhancing the resilience of our shipping industry. BIL overall doubles the level of investment in port infrastructure and waterways, helping strengthen our supply chain and reduce pollution.
  • 5307 Ferry Program ($150M, existing) – BIL retains the $30 million per year passenger ferry program for ferries that serve urbanized areas.
  • Electric or Low Emitting Ferry Program ($500M, new) – This competitive grant program will support the transition of passenger ferries to low or zero emission technologies.
  • Rural Ferry Program ($2B, new) – This competitive grant program will ensure that basic essential ferry service continues to be provided to rural areas by providing funds to States to support this service.
  • Federal Highway Administration (FHWA) competitive grants for nationally significant bridges and other bridges ($12.5B, new) – This new competitive grant program will assist state, local, federal, and tribal entities in rehabilitating or replacing bridges, including culverts. Large projects and bundling of smaller bridge projects will be eligible for funding.
  • FTA All Station Accessibility Program ($1.75B, new) – This competitive grant program will provide funding to legacy transit and commuter rail authorities to upgrade existing stations to meet or exceed accessibility standards under the Americans with Disabilities Act.
  • Charging and fueling infrastructure discretionary grants (Up to $2.5B, new) – This discretionary grant program will provide up to $2.5 billion in funding to provide convenient charging where people live, work, and shop.
  • Reconnecting Communities Pilot Program ($1B, new) – This new competitive program will provide dedicated funding to state, local, MPO, and tribal governments for planning, design, demolition, and reconstruction of street grids, parks, or other infrastructure.
  • FHWA Nationally Significant Federal Lands and Tribal Projects ($1.5B, expanded) – This discretionary program provides funding for the construction, reconstruction, and rehabilitation of nationally-significant projects within, adjacent to, or accessing Federal and tribal lands. BIL amends this program to allow smaller projects to qualify for funding and allows 100% federal share for tribal projects.
  • Strengthening Mobility and Revolutionizing Transportation (SMART) Grant Program ($1B, new) – The SMART Grant program will be a programmed competition that will deliver competitive grants to states, local governments, and tribes for projects that improve transportation safety and efficiency.

Dollars from this new act are expected to begin flowing to states and local governments in the first half of 2022.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

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