Department of Transportation’s Mega Grants: Streamlining Funding for Major Infrastructure Projects

The Department is combining three major discretionary grant programs into one Multimodal Projects Discretionary Grant (MPDG) opportunity to reduce the burden for state and local applicants and increase the pipeline of “shovel-worthy” projects that are now possible because of the Bipartisan Infrastructure Law. These investments will create good-paying jobs, grow the economy, reduce emissions, improve safety, make our transportation more sustainable and resilient, and expand transportation options in rural America and other underserved communities. Thanks to the Bipartisan Infrastructure Law, this funding will help enable more communities to build vital infrastructure projects that also strengthen supply chains and reduce costs for American families.

The National Infrastructure Project Assistance (MEGA) program was created in the Bipartisan Infrastructure Law to fund major projects that are too large or complex for traditional funding programs. The program will provide grants on a competitive basis to support multijurisdictional or regional projects of significance that may also cut across multiple modes of transportation. Eligible projects could include highway, bridge, freight, port, passenger rail, and public transportation projects of national and regional significance. These could be bridges or tunnels connecting two states; new rail and transit lines that improve equity and reduce emissions; and freight hubs integrating ship, train and truck traffic while improving environmental justice. DOT will award 50 percent of funding to projects greater than $500 million in cost, and 50 percent to projects greater than $100 million but less than $500 million in cost. The program will receive up to $1 billion this year alone and be able to provide multi-year funding to projects.