Nationally Significant Multimodal Freight and Highway Projects (INFRA)

Note: Except as indicated, all references in this document are to the Bipartisan Infrastructure Law (BIL), enacted as the Infrastructure Investment and Jobs Act (IIJA), Pub. L. 117-58 (Nov. 15, 2021).

Program Purpose

The BIL continues the INFRA Program, now formally retitled the Nationally Significant Multimodal Freight and Highway Projects Program (the Program). The Program continues to provide financial assistance through competitive grants, known as INFRA grants or credit assistance, to nationally and regionally significant freight and highway projects that align with the program goals to (BIL’s revisions to the program goals are emphasized in bold)—

• improve the safety, efficiency, and reliability of the movement of freight and people [NEW] in and across rural and urban areas;
• generate national or regional economic benefits and an increase in the global economic competitiveness of the U.S.;
• reduce highway [NEW] or freight congestion and bottlenecks;
• improve connectivity between modes of freight transportation;
• enhance the resiliency of critical highway [NEW] or freight infrastructure and help protect the environment;
• improve roadways vital to national energy security, [NEW] including highways that support movement of energy equipment; and
• address the impact of population growth on the movement of people and freight.

Statutory Citation

• § 11110; 23 U.S.C. 117

Funding Features

Except as specified above and below, BIL continues all funding features that applied to INFRA under the FAST Act.

Types of Budget Authority or Authorization of Appropriations

• Contract authority from the Highway Account of the Highway Trust Fund, subject to the overall Federal-aid obligation limitation. [§ 11101(a)(5)]
• Advance appropriations from the General Fund. [Division J, title VIII, Highway Infrastructure Program heading, paragraph (3)]
• Authorization, subject to appropriation, from the General Fund. [23 U.S.C. 117(s)]

Set-aside for Administrative Expenses

• For each fiscal year during FY22-26, DOT may retain—
  • up to 2.0 percent of INFRA contract authority for review of grant applications, administration, and oversight [23 U.S.C. 117(b)(3)]; and
  • up to 1.5 percent of INFRA advance appropriations for FHWA operations and administration. [Division J, title VIII, Highway Infrastructure Program heading, third proviso]

Set-aside for Small Projects

• For each fiscal year during FY22-26, DOT must reserve—
  • 15 percent of INFRA funding (vs. 10 percent under the FAST Act) for projects (identified as “Small Projects”) that do not satisfy the typical INFRA’s typical minimum project cost threshold ($100M or a specified percentage of a State’s Federal-aid highway apportionment); [23 U.S.C. 117(e)(1)] and
  • At least 30 percent of the set-aside for Small Projects (4.5 percent of INFRA funding) for projects in rural areas (“Rural Areas”, defined as projects located in areas outside urbanized areas with populations of fewer than 200,000). [23 U.S.C. 117(e)(4)]

Set-aside for State Incentives Pilot Program

• Of INFRA funding for each fiscal year during FY22-26, DOT must reserve $150M for the State Incentives Pilot Program (SIPP), under which DOT will prioritize applications that offer a greater non-Federal share of project costs relative to other applications under the pilot program. [23 U.S.C. 117(q)]
• Of each fiscal year’s SIPP funding, DOT must reserve—
  • at least 10 percent of the funds ($15M) for Small Projects; and
  • at least 25 percent of the funds ($37.5M) for Projects in Rural Areas. [23 U.S.C. 117(q)(5)]

Allowable Amount for Non-highway Freight Projects

• Up to 30 percent (versus, under the FAST Act, $700M over the period of FY16-21) of each fiscal year’s INFRA funding may be used for freight projects that are—
  • a freight intermodal or freight rail project; or
  • within the boundaries of a public or private freight rail, water (including ports), or intermodal facility and that are surface transportation infrastructure projects necessary to facilitate direct intermodal interchange, transfer, or access into or out of the facility.
    [23 U.S.C. 117(d)(2)(A)]

Eligible Activities

• The BIL continues all prior INFRA eligibilities and adds the following new eligibilities:
  • Wildlife crossing projects.
  • Surface transportation projects within or functionally connected to an international border crossing (and that meet certain conditions).
  • Marine highway corridor projects functionally connected to the National Highway Freight Network and likely to reduce on-road emissions.
  • Highway, bridge, or freight projects carried out on the National Multimodal Freight Network.
    [23 U.S.C. 117(d)(1)(A)(v)-(viii)]
• The BIL also clarifies that INFRA funding may be used on a project to replace or rehabilitate a culvert, or to reduce stormwater runoff for the purpose of improving habitat for aquatic species.
  [23 U.S.C. 117(f)(2)]

Federal Share

• The Federal share for a SIPP project may not exceed 50 percent [23 U.S.C. 117(q)(3)(A)].
• For non-SIPP projects, in general, the Federal share of an INFRA grant for—
  • a Small Project is 80 percent of total eligible project cost; and
  • other projects may not exceed 60 percent of total eligible project cost. [23 U.S.C. 117(j)(1)]
• As under the FAST Act, a Federal land management agency may use Federal funds (other than funds made available under 23 U.S.C. or 49 U.S.C.) to pay the non-Federal share of an INFRA project (other than a SIPP project). [23 U.S.C. 117(j)(3)]
• Otherwise, Federal assistance other than INFRA funding may be applied toward the non-Federal share of an INFRA project (other than a SIPP project [23 U.S.C. 117(q)(3)(B)]), but the maximum Federal assistance (INFRA or otherwise) for the project may not exceed—
  • for a State with a population density of up to 80 persons per square mile [based on the 2010 census,] the applicable share under 23 U.S.C. 120(b); and
  • for other States, 80 percent of total eligible project costs. [23 U.S.C. 117(j)(2)]

Program Features

Except as specified above and below, BIL continues all requirements that applied to INFRA under the FAST Act.

Eligible Applicants

• The BIL adds multi-state corridor organizations to the list of entities eligible to apply for INFRA grants. [23 U.S.C. 117(c)(1)(H)]

Selection Considerations

• When selecting projects for INFRA grants, DOT now must consider (in addition to the items specified in the FAST Act)—
  • enhancement of freight resilience to natural hazards or disasters;
  • whether the project will improve the shared transportation corridor of a multistate corridor organization, if applicable;
  • whether to prioritize projects in States in which neither the State nor an eligible entity in the State has received an INFRA grant; and [23 U.S.C. 117(h)(4)-(6)]
  • [for Small Projects,] the proposed project’s effect on safety on freight corridors with significant hazards. [23 U.S.C. 117(e)(3)(C)]

Efficient Use of Federal Funds

• Once selected for an INFRA grant, a grant recipient may, prior to signature of the fund-obligating agreement, expend non-Federal funds on the project. DOT then must credit those non-Federal funds toward the project’s non-Federal cost share, if specified conditions are met, including the recipient—
  • submitting (and DOT approving) a justification for the activities to be advanced with non-Federal funds; and
  • When carrying out the non-Federally-funded aspects of the project, complying with all Federal requirements that would apply if Federal funds were involved. [23 U.S.C. 117(k)]

Applicant Notification

• Within 60 days of selecting INFRA grants, DOT must notify, in writing, each applicant that was not selected for the grant, and must offer the applicant a debrief on DOT’s evaluation of the application and why DOT did not select the application for award. [23 U.S.C. 117(o)]

Additional Information and Assistance

• FHWA can connect you with your local FHWA office and support you with technical assistance for planning, design, construction, preserving, and improving public roads and in the stewardship of Federal funds. For assistance, visit: https://www.fhwa.dot.gov/bipartisan-infrastructure-law/technical_support.cfm