DOT Unveils $1.5B in Infrastructure Grants

The Department of Transportation took a major step to open up a $1.5 billion grant pool that can cover ports, intermodal, freight rail and other types of freight construction as well as passenger projects.

Dubbed TIGER discretionary grants, for Transportation Investment Generating Economic Recovery, this money was included in the Recovery Act to be allocated directly by DOT Secretary Ray LaHood separate from other amounts targeted specifically for state highway departments, airports or passenger rail systems.

Those other funds were under quick-release rules with early deadlines, so LaHood's TIGER team at DOT focused on first handling those other programs to get their spending under way while it developed application guidelines for his discretionary grants.

Those criteria, published in the May 15 Federal Register, could open the door for many more freight projects. While states could use their highway funds under the stimulus law for freight rail and port projects as well as road work, by far most of that money went into bridge repairs and pavement resurfacing.

But LaHood earlier said ports will be able to tap his $1.5 billion grant pool to get help with some key projects. (See story.)

DOT said the grants can range from $20 million to $300 million "to support high impact transportation projects." Short line railroad officials have worried about having to meet the $20 million threshold to qualify for projects such as lower-cost bridge replacements, but LaHood can waive that minimum grant requirement level to cover smaller projects.

The program aims to inject funds into projects that can both quickly create construction jobs and stimulate broader economic activity. DOT also said it will use the grants to improve existing transportation facilities and national competitiveness, boost energy efficiency and curb greenhouse emissions.

The grant pool includes $200 million that can be leveraged into much larger investments, as it could be used under a separate federal loan program to pay a borrower's subsidy costs. That would allow the money to support another $2 billion in credit assistance, DOT said.

To see the Federal Register notice, click here.

Contact John D. Boyd at jboyd@joc.com.