Infrastructure Investment and Jobs Act Guidance; Key Takeaways for Transportation
While some are apprehensive about how this $1.2 trillion bill will unfold, PEC offers guidance on the IIJA funding structure for cities and municipalities. In addition, we will cover many aspects of infrastructure bill from transportation to water to broadband to electricity. With over $567 billion going to discretionary and formula programs under USDOT’s jurisdiction between FY 2022 and FY 2026, the majority of funding in the bill will flow directly to state transportation departments with a significant portion reserved for new, USDOT-administered discretionary grant programs.
The IIJA creates over $150 billion worth of discretionary grant programs, giving USDOT an extraordinary opportunity to direct these new funds to projects that will advance safety, equity, and climate goals. The chart below outlines the grant programs open to cities.
Overall funding levels for core highway formula programs are:
- $52,238,065,375 for fiscal year 2022
- $53,237,826,683 for fiscal year 2023
- $54,308,583,217 for fiscal year 2024
- $55,400,754,881 for fiscal year 2025
- $56,514,769,844 for fiscal year 2026
FTA FORMULA PROGRAMS
The infrastructure package contains $39 billion in new funding for transit.
This is a $10 billion decrease from the amount in the original bipartisan framework but ultimately increases funding by $19 billion (43 percent) from levels authorized under the FAST Act.
The IIJA largely continues policies enacted by the FAST Act, as the Senate Banking Committee did not put forward a new transit title this year.
Overall funding levels for core transit formula programs are as follows:
We recognize that the IIJA Funding Structure may be intimidating to many cities and municipalities, that is why we want to help guide you through this process. There are things you can do now to get prepared and position your community to benefit from this bill. Leverage PECs expertise, connections, and passion to energize communities to your advantage.