U.S. DOT Announces $57 Million Available for Innovative Finance and Asset Concession Grants

The U.S. Department of Transportation (DOT’s) Build America Bureau (Bureau) released a Notice of Funding Opportunity NOFO) for a new program authorized by the Bipartisan Infrastructure Law. The Innovative Finance and Asset Concession Grant Program makes $100 million available over five years to assist public entities in facilitating and evaluating public-private partnerships and exploring innovative financing and delivery opportunities for Transportation Infrastructure Finance and Innovation Act (TIFIA) eligible (TIFIA) eligible projects. The NOFO allocates funds for fiscal years 2022, 2023, and 2024, totaling $57.72 million. Grants up to $2 million are available, with the first million requiring no local match. Applications are due May 9.e NOFO allocates funds for fiscal years 2022, 2023, and 2024, totaling $57.72 million. Grants up to $2 million are available, with the first million requiring no local match. Applications are due May 9.

“This program is a great example of how we are empowering state and local governments to deliver transformational transportation projects,” said Deputy Transportation Secretary Polly Trottenberg. “The grants will allow local and state leaders the opportunity to explore innovative financing solutions by accessing external expertise and building internal support.”

Two types of grants are available under the new program: Technical Assistance Grants and Expert Services Grants. Technical Assistance grants will build organizational capacity and advance a portfolio of assets by conducting pre-construction tasks, such as asset scans, value-for-money analyses, and other tasks that consider innovative finance and delivery, including asset concessions. Expert Services Grants enable recipients to hire expert professionals to develop and deliver public-private partnerships in connection with the development of a specific asset. Applicants must choose one of the grant types to apply for in this round of funding. 

Eligible applicants include states, tribal governments, local governments, special purpose public authorities, or agencies chartered by a state, tribal, or local government. 

“Providing 100 percent funding with no match for the first $1 million will enable lower-resourced agencies to apply for these funds without impacting their budget or daily services to the public,” said Bureau Executive Director Morteza Farajian. “This funding will enable communities to develop and evaluate innovative solutions and delivery models to more efficiently and cost-effectively construct complicated projects.”