The Bipartisan Infrastructure Law (BIL) appropriated $20.4 billion to the Federal Transit Administration (FTA) in 2022 – slightly less than what was originally authorized, but about $7 billion more than previous funding levels, representing new opportunities to improve U.S. transit.

This amount is likely to serve as the baseline for transit funding between now and 2026, according to Ken Feldman, FTA grant practice leader for Advisory at WSP USA. The budget proposal for 2023 is $21.1 billion, a three percent increase over 2022, including $4.45 billion for FTA’s Capital Investment Grant (CIG) program, a significant increase of $650 million from the 2022 budget.

“The CIG program has more funding available than projects that are currently ready,” Feldman said. “So now is a good time to see if you can advance your project and get it into the pipeline.”

FTA has also suggested that it may award CIG grants to projects currently in the Project Development or Engineering phases. This is unusual for FTA, as they normally don't award grants before projects are ready for the CIG award, after the Project Development and Engineering phases are completed.

The U.S. Department of Transportation (USDOT) also updated its guidance for benefit-cost analysis requirements in its competitive grant programs, including Rebuilding American Infrastructure with Sustainability and Equity (RAISE), National Infrastructure Project Assistance Program (Mega Grants), Infrastructure for Rebuilding America (INFRA), Consolidated Rail Infrastructure and Safety Improvements (CRISI) and the Federal-State Partnership for Intercity Rail.

“The updated guidance provides new methods for capturing the health benefits of active transportation modes like pedestrian and cycling; the benefits of improving transit facilities; and a new category of environmental benefits, including stormwater runoff and wildlife impacts,” said Feldman, who primarily works with WSP clients on transportation projects, including major transit projects seeking CIG funding.

In addition to funding new grant programs, Feldman said transit agencies need to be aware of changes that the BIL is making to ongoing transit programs, including an update on eligibility for Core Capacity projects.

FTA issued initial guidance addressing the BIL changes in March. “This guidance addresses how FTA will determine if an agency is demonstrating progress toward meeting its transit asset management performance targets,” he said. “The initial guidance also provides information on how to apply for entry into project development for bundles of projects.”

FTA has also published updated guidance about agency safety plans, transit asset disposition, local hiring processes and contracts.

The Federal Highway Administration (FHWA) updated its guidance on the Carbon Reduction Formula Program and the Safe Streets.

“These programs should help fund transit projects that would lower greenhouse gas emissions or provide safe access to transit stops and stations,” Feldman said.

To be eligible for the Carbon Reduction Program, a project must support implementation of the state's carbon reduction strategy, and Safe Streets eligibility requires a project to be included in a comprehensive safety action plan.

Historic funding levels have also been authorized for rail programs through the Federal Railroad Administration (FRA).

“For the entire authorization period, $102 billion in total funding has been authorized, with more than half that amount, about $66 billion, in advanced or guaranteed funding,” said Scott Trommer, senior director and manager of major projects funding and strategy at WSP.

Between 2022-2026, $22 billion will be appropriated for Amtrak, including its ambitious Northeast Corridor and National Network improvement and expansion programs. The remainder of FRA rail funding will be provided on a competitive basis through several programs including Consolidated Rail Infrastructure and Safety Improvement (CRISI), Railroad Crossing Elimination, Federal-State Partnership for Intercity Passenger Rail and Restoration and Enhancement.

Specifically, the includes $5 billion for CRISI and $3 billion for the Railroad Crossing Elimination program. The newly formed Federal-State Partnership for Intercity Passenger Rail is set at $36 billion, and an additional $250 million will be used for Restoration and Enhancement.

For the 2022 budget, $16.1 billion was appropriated. While this is less than the $20.1 billion originally sought by President Biden, it still represents a significant funding increase for critical rail projects. And it’s expected to grow to $17.9 billion in the proposed 2023 budget.

FRA has already published several of its Notices of Funding Opportunities (NOFOs), while some are forthcoming. The agency is soon expected to publish its requests for projects in the Northeast Corridor (NEC) and will publish the NEC project inventory in November. The Railroad Crossing Elimination Program NOFO was released in late June, While the CRISI NOFO will be coming in August. The Federal-State Partnership NOFO is expected in October.

“The Bipartisan Infrastructure Law includes funds to develop plans, and then requires projects applying for competitive grants to be included in those plans,” Feldman said. “WSP experts are helping clients determine their funding requirements and develop plans for these programs.”

(Note: These program details are updated through mid-July 2022.)

This is the third article in a six-part series offering a sector-by-sector review of what's been happening with BIL funding, and how to make the most of these opportunities. This series covers the BIL’s impact on:

• Part 1: Climate, Resilience & Sustainability (CRS) and Equity
• Part 2: Transit and Rail
• Part 3: Highways, Bridges and Electric Vehicles
• Part 4: Water
• Part 5: Energy
• Part 6: Aviation and Maritime Infrastructure

[To subscribe to Insights, contact the editorial staff at [email protected].]