MPDG 2025-2026 Notice of Funding Opportunity.pdf

4910-9X

DEPARTMENT OF TRANSPORTATION

Office of the Secretary of Transportation

Notice of Funding Opportunity for the Department of Transportation’s FY 2025-2026

Multimodal Project Discretionary Grant Opportunity

AGENCY: Office of the Secretary of Transportation, U.S. Department of Transportation

ACTION: Notice of Funding Opportunity (NOFO)

SUMMARY:

SUMMARY OVERVIEW OF KEY INFORMATION: Multimodal Project

Discretionary Grant Opportunity

Program

Overview

The MPDG opportunity contains three grant programs: the National

Infrastructure Project Assistance grants program (Mega), the Nationally

Significant Multimodal Freight and Highway Projects grants program

(INFRA), and the Rural Surface Transportation Grant program (Rural).

The funding opportunities are awarded on a competitive basis for surface transportation infrastructure projects – including highway and bridge, intercity passenger rail, railway-highway grade crossing or separation, wildlife crossing, public transportation, marine highway, and freight projects, or groups of such projects – with significant national or regional impact, or to improve and expand the surface transportation infrastructure in rural areas.

Objective 1) Invest in surface transportation infrastructure projects of national or regional significance, or improve/expand infrastructure in rural areas; and

2) Support projects that are consistent with the Department’s strategic goals: improve safety, economic strength and global competitiveness, equity, and climate and sustainability.

Eligible

Applicants

(Varies by program)

• a State or a group of States;

• a metropolitan planning organization or a regional transportation planning organization (depending on grant)

• a unit of local government;

• a political subdivision of a State;

• a special purpose district or public authority with a transportation function, including a port authority;

• a Tribal government or a consortium of Tribal governments;

• Federal land management agency that applies jointly with a State or group of States;

• a partnership between Amtrak and 1 or more entities described above;

• a group of entities described above

(NOTE: Eligibility varies by program. Section C.1 provides additional information)

Eligible Project

Types

(Varies by program)

• A highway or bridge project on the National Multimodal Freight

Network, National Highway Freight Network, or National

Highway System

• A freight intermodal (including public ports) or freight rail project that provides public benefit

• A highway freight project eligible under National Highway

Freight Program

• A railway highway grade separation or elimination project

• A highway safety improvement project, including a project to improve a high risk rural road as defined by the Highway Safety

Improvement Program

• An intercity passenger rail project

• A public transportation project that is eligible under assistance under Chapter 53 of title 49 and is a part of any of the project types described above

• A wildlife crossing project

• A surface transportation project within the boundaries or functionally connected to an international border crossing that improves a facility owned by Fed/State/local government and increases throughput efficiency

• A project for a marine highway corridor that is functionally connected to the NHFN and is likely to reduce road mobile source emissions

• A highway, bridge, or freight project on the National Multimodal

Freight Network

• A project on a publicly-owned highway or bridge that provides or increases access to an agricultural, commercial, energy, or intermodal facility that supports the economy of a rural area

• A project to develop, establish, or maintain an integrated mobility management system, a transportation demand management system, or on-demand mobility services

(NOTE: Not all project types are eligible under all three programs.

Section C.3 provides additional information.)

Funding It is anticipated that this opportunity will award approximately $5.1 billion for this round from FY 2025 and FY2026 funding.

• INFRA: $2.7 billion

• Mega: $1.7 billion

• Rural: $780 million

Deadline: May 6, 2024 at 11:59pm Eastern

DATES: Applications must be submitted by 11:59:59 p.m. Eastern on May 6, 2024 through

Grants.gov.

ADDRESSES: Applications must be submitted through www.Grants.gov.

FOR FURTHER INFORMATION CONTACT: For further information regarding this notice, please contact the Office of the Secretary via email at MPDGrants@dot.gov, or call

Aubrei Barton at (202) 841-7786. A TDD is available for individuals who are deaf or hard of hearing at 202-366-3993. In addition, up to the application deadline, the

U.S. Department of Transportation (Department or DOT) will post answers to common questions and requests for clarifications on the Department’s website at https://www.transportation.gov/grants/mpdg-frequently-asked-questions.

SUPPLEMENTARY INFORMATION:

Each section of this notice contains information and instructions relevant to the application process for the MPDG grant program, and all applicants should read this notice in its entirety so that they have the information they need to submit eligible and competitive applications.

TABLE OF CONTENTS

A. Program Description

1. Overview

2. Changes from the FY 2023- FY 2024 INFRA NOFO

3. Additional Information

B. Federal Award Information

1. Amount Available

C. Eligibility Information

1. Eligible Applicants

2. Eligible Projects

3. Eligible Project Costs

4. Cost Sharing or Matching

5. Project Requirements for Each Funding Opportunity

6. Definition of Rural and Urban Areas

7. Areas of Persistent Poverty and Historically Disadvantaged Communities

8. Project Components

9. Network of Projects

10. Application Limit

D. Application and Submission Information

1. Address

2. Content and Form of Application

3. Unique Entity Identifier and System for Award Management (SAM)

4. Submission Dates and Times http://www.grants.gov/ mailto:INFRAgrants@dot.gov

5. Funding Restrictions

6. Other Submission Requirements

E. Application Review Information

1. Criteria

2. Review and Selection Process

3. Additional Information

F. Federal Award Administration Information

1. Federal Award Notices

2. Administrative and National Policy Requirements

3. Reporting

G. Federal Awarding Agency Contacts

H. Other Information

1. Protection of Confidential Business Information

2. Publication of Application Information

3. Department Feedback on Applications

A. Program Description

1. Overview

The Infrastructure Investment and Jobs Act (Pub. L. 117-58, November 15, 2021)

(Bipartisan Infrastructure Law, or BIL) provided funds to the Department across three programs to invest in projects of national or regional significance – the National Infrastructure

Project Assistance grants program, found under 49 U.S.C. § 6701 (Mega), the Nationally

Significant Multimodal Freight and Highways Projects grants program, found at 23 U.S.C.

§ 117 (Infrastructure for Rebuilding America or INFRA), and the Rural Surface Transportation

Grant program, found at 23 U.S.C. § 173 (Rural). The BIL makes available up to $5 billion for the Mega program for the period of FY 2022 through 2026; up to $8 billion to the INFRA program for the period of FY 2022 through 2026; and up to $2 billion for the Rural program for the period of FY 2022 through 2026, for a combined total of up to $15 billion for FY 2022 through 2026.

To help streamline the process for applicants, the Department has combined solicitations for the Mega, INFRA, and Rural programs into the MPDG opportunity.

Applications will be considered for all programs under which they are eligible, unless the applicant chooses to opt-out of consideration for any of the three programs. Applicants are encouraged to apply for multiple programs, to maximize their potential of receiving Federal support. The Fiscal Year (FY) 2025 and 2026 MPDG awards will be made for each of the three grant programs as appropriate and consistent with each grant program’s statutory language, and subject to availability of funds.

The Department seeks to fund projects that advance the Departmental priorities of safety, equity, climate and sustainability, and workforce development, job quality, and wealth creation as described in the USDOT Strategic Plan, Research, Development and Technology Strategic Plan, and in executive orders.1

In addition, consistent with the Department’s Rural Opportunities to Use Transportation for

Economic Success (ROUTES) initiative, the Department seeks to award funding to rural projects that address deteriorating conditions and disproportionately high fatality rates and transportation costs in rural communities.

Section E of this NOFO describes the process for selecting projects that further these goals under each of the three grant programs. Section F.3 describes progress and performance reporting requirements for selected projects, including the relationship between that reporting and the program’s selection criteria.

2. Changes from the FY 2023- FY 2024 INFRA NOFO

While the six named Outcome Area criteria remain the same, this NOFO has revised

1 Executive Order 14008, Tackling the Climate Crisis at Home and Abroad (86 FR 7619).

Executive Order 13985, Advancing Racial Equity and Support for Underserved Communities Through the Federal Government

(86 FR 7009). Executive Order 14025, Worker Organizing and Empowerment (86 FR 22829), and Executive Order 14052, Implementation of the Infrastructure Investment and Jobs Act (86 FR 64335).

https://www.transportation.gov/dot-strategic-plan the descriptions of the criteria and the specific rating formula, and has combined all Outcome

Area criteria into one rubric in Section E for ease of reference.

Recipients of FY 2025-2026 awards from any program will be required to submit performance reports described in Section F.3. Performance reporting was previously a requirement only for the Mega program, and voluntary for INFRA and Rural.

Based on applicant feedback, this NOFO also clarifies the applicable obligation and expenditure deadlines for each program and fiscal year, and provides further guidance to applicants related to developing their project schedules. Other applicant feedback related to organization of the NOFO has also been incorporated, to the extent possible under 2 CFR Part

200.

Applicants who are planning to reapply using materials prepared for prior competitions should ensure that their FY 2025- 2026 application fully addresses the criteria and considerations described in this notice and that all relevant information is updated.

3. Additional Information

The Mega program is authorized at 49 U.S.C. § 6701. The INFRA program is authorized at 23 U.S.C. § 117. The Rural program is authorized at 23 U.S.C. § 173. They are described respectively in the Federal Assistance Listings under the assistance listing program titles “National Infrastructure Project Assistance” (assistance listing number 20.937), “Nationally Significant Freight and Highway Projects” (assistance listing number 20.934), and

“Rural Surface Transportation Grant Program” (assistance listing number 20.938).

B. Federal Award Information

1. Amount Available

This notice solicits applications for approximately $5 billion in FY 2025- 2026 MPDG opportunity funds. Up to $1.7 billion will be made available for the Mega program, approximately $2.7 billion will be made available for the INFRA program, and approximately

$780 million will be made available for the Rural funding opportunities program. In addition to the FY 2025 funding, the Department intends to make award decisions from the FY 2026 funding, subject to availability of funding. In addition to the FY 2025- 2026 funds, amounts from prior year INFRA authorizations may be made available and awarded under this solicitation. Any award under this notice will be subject to the availability of funding. Mega, INFRA, and the Rural program each have their own specific funding restrictions, including award size and types of projects. FY 2025 funds cannot be obligated before October 1, 2024, and FY

2026 funds cannot be obligated before October 1, 2025. Refer to Sections C.3 and D.5 for greater detail on eligible project sizes, types, and funding restrictions for each program.

C. Eligibility Information

To be selected for a grant, an applicant must be an Eligible Applicant and the project must be an Eligible Project that meets the minimum project size requirement.

1. Eligible Applicants

Each of the three programs have slightly different statutory applicant eligibility, as shown below.

Eligible Applicants

Mega INFRA Rural

1. a State or a group of States;

2. a metropolitan planning organization;

3. a unit of local government;

4. a political subdivision of a

State;

5. a special purpose district or public authority with a transportation function, including a port authority;

6. a Tribal government or a consortium of Tribal governments;

7. a partnership between Amtrak and 1 or more entities described in (1) through (6);

and,

8. a group of entities described in any of (1) through (7).

1. a State or group of States;

2. a metropolitan planning organization that serves an Urbanized Area (as defined by the Bureau of the Census) with a population of more than 200,000 individuals;

3. a unit of local government or group of local governments;

4. a political subdivision of a State or local government;

5. a special purpose district or public authority with a transportation function, including a port authority;

6. a Federal land management agency that applies jointly with a State or group of

States;

7. a tribal government or a consortium of tribal governments;

8. a multistate corridor organization; or

9. a multistate or multijurisdictional group of entities described in this paragraph.

1. a State;

2. a regional transportation planning organization;

3. a unit of local government;

4. a tribal government or a consortium of tribal governments; or

5. a multijurisdictional group of entities above.

i. Definition of State

For the Mega program, “State” includes any of the 50 states, the District of Columbia, the

Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the United

States Virgin Islands, Guam, American Samoa, and any other territory or possession of the United

States.

For the INFRA and Rural programs, “State” includes any of the 50 states, the District of

Columbia, or Puerto Rico. Otherwise eligible non-State entities located in or serving U.S. Territories are eligible, but should carefully review project type eligibilities in Section C.2.

ii. Joint Applications for Any Program

Multiple States or entities that submit a joint application should identify a lead applicant as the primary point of contact. Joint applications should include a description of the roles and responsibilities of each applicant and should be signed by each applicant. The applicant that will be responsible for financial administration of the project must be an eligible applicant.

2. Eligible Projects Each of the three programs have different statutory project types, as shown below.

Eligible Project Types

Mega INFRA Rural

1. A highway or bridge project on the National

Multimodal Freight Network

2. A highway or bridge project on the National

Highway Freight Network

3. A highway or bridge project on the National

Highway System

4. A freight intermodal

(including public ports) or freight rail project that provides public benefit

5. A railway highway grade separation or elimination project

6. An intercity passenger rail project

7. A public transportation project that is eligible under assistance under Chapter 53 of title 49 and is a part of any of the project types described above

1. A highway freight project on the National Highway

Freight Network

2. A highway or bridge project on the National

Highway System

3. A freight intermodal, freight rail, or freight project within the boundaries of a public or private freight rail, water (including ports), or intermodal facility and that is a surface transportation infrastructure project necessary to facilitate direct intermodal interchange, transfer, or access into or out of the facility*

4. A highway-railway grade crossing or grade separation project

5. A wildlife crossing project

6. A surface transportation project within the boundaries or functionally connected to an international border crossing that improves a facility owned by

Fed/State/local government and increases throughput efficiency

7. A project for a marine highway corridor that is functionally connected to the

NHFN and is likely to reduce road mobile source emissions

8. A highway, bridge, or freight project on the National

Multimodal Freight Network

1. A highway, bridge, or tunnel project eligible under

National Highway

Performance Program

2. A highway, bridge, or tunnel project eligible under

Surface Transportation Block

Grant2

3. A highway, bridge, or tunnel project eligible under

Tribal Transportation Program

4. A highway freight project eligible under National

Highway Freight Program

5. A highway safety improvement project, including a project to improve a high-risk rural road as defined by the Highway Safety

Improvement Program

6. A project on a publicly-owned highway or bridge that provides or increases access to an agricultural, commercial, energy, or intermodal facility that supports the economy of a rural area

7. A project to develop, establish, or maintain an integrated mobility management system, a transportation demand management system, or on-demand mobility services

2 This statutory eligibility citation is 23 USC 133(b). In order for local roads and rural minor collectors to be eligible for the

Rural Surface Transportation program under 23 USC 133(c), they must also meet the eligibility condition that the project is on a publicly-owned highway or bridge that provides or increases access to an agricultural, commercial, energy, or intermodal facility that supports the economy of a rural area.

i. Mega Eligibility Notes

To be eligible as a public transportation project that is eligible under assistance under Chapter 53 of title 49 U.S.C. and is a part of any of the project types described above, a component must meet the following parameters:

• the public transportation project must be advanced as a component of a project eligible under 49 U.S.C. 6701(d)(1)(A)-(D); and

• the public transportation project component must be necessary to achieve the transportation goal of the project eligible under 49 U.S.C. 6701(d)(1)(A)-(D); and

• the Department must determine that a primary purpose of the entire project is to advance the project eligible under 49 U.S.C. 6701 (d)(1)(A)-(D). To determine the primary purpose of the entire project, the Department will review the grant application and proposed project components and consider the relationship between the public transportation project and the other components of the entire project, based on information in the application, public outreach materials, environmental documentation, and planning documents. The project may serve multiple primary purposes.

Eligibility includes new multi-modal projects where the addition of the public transportation component to an eligible project under 49 U.S.C. 6701 (d)(1)(A)-(D) provides a significant improvement to the mobility benefits for users of highways or intercity passenger rail. The burden is on the applicant to provide sufficient documentation to allow the Department to evaluate the project’s eligibility as described above.

ii. INFRA Eligibility Notes

To be eligible under INFRA, a project within the boundaries of a freight rail, water

(including ports), or intermodal facility must be a surface transportation infrastructure project necessary to facilitate direct intermodal interchange, transfer, or access into or out of the facility and must significantly improve freight movement on the NHFN. In this context, improving freight movement on the NHFN may include shifting freight transportation to other modes, thereby reducing congestion and bottlenecks on the NHFN. For a freight project within the boundaries of a freight rail, water (including ports), or intermodal facility, Federal funds can only support project elements that provide public benefits.

iii. Rural Eligibility Notes

To be eligible under Rural as a project on a publicly-owned highway or bridge that provides or increases access to an agricultural, commercial, energy, or intermodal facility that supports the economy of a rural area, a project should meet all of the following parameters:

• The project is located on a publicly owned highway or publicly owned bridge.

• The application expressly identifies the agricultural, commercial, energy, or intermodal facility that supports the economy of a rural area.

• The application describes how the project provides or increases access to the identified facility.

• The project location should be within a reasonable distance to the identified facility, typically no farther than 10 miles away. If the distance is greater than 10 miles away, the applicant should provide additional justification support how the project provides or increases access to the identified facility.

All projects on local roads or rural minor collectors must qualify under these criteria as providing or increasing access to an agricultural, commercial, energy, or intermodal facility that supports the economy of a rural area. The burden is on the applicant to provide sufficient documentation and narrative justification to allow the Department to evaluate the project’s eligibility as described above.

If the application lacks the above information, the Department is unlikely to determine the project is eligible under 23 U.S.C. 173(e)(1)(F).

An eligible entity may bundle two or more similar eligible projects under the Rural program if projects are included as a bundled project in a statewide transportation improvement program under

23 U.S.C. § 135 and will be awarded to a single contractor or consultant pursuant to a contract for engineering and design or construction between the contractor and the eligible entity.

3. Eligible Project Costs

The table below defines eligible project costs for each program per the relevant program statute:

Eligible Project Costs

Mega INFRA Rural

Development-phase activities and costs, including planning, feasibility analysis, revenue forecasting, alternatives analysis, data collection and analysis, environmental review and activities to support environmental review, preliminary engineering and design work, and other preconstruction activities, including the preparation of a data collection and post-construction analysis plan; and, Construction, reconstruction, rehabilitation, acquisition of real property (including land relating to the project and improvements to that land), environmental mitigation

(including projects to replace or rehabilitate culverts or reduce stormwater runoff for the purpose of improving habitat for aquatic species), construction contingencies, acquisition of equipment, protection, and

Development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering, design, and other preconstruction activities, provided the project meets statutory requirements.

Construction, reconstruction, rehabilitation, or acquisition of property (including land related to the project and improvements to the land), environmental mitigation (including a project to replace or rehabilitate a culvert, or to reduce stormwater runoff for the purpose of improving habitat for aquatic species), construction contingencies, equipment acquisition, and operational improvements directly related to system performance.

Development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities;

and, Construction, reconstruction, rehabilitation, acquisition of real property (including land related to the project and improvements to the land), environmental mitigation, construction contingencies, acquisition of equipment, and operational operational improvements directly relating to the project.

INFRA grant recipients may use INFRA funds to pay for the subsidy and administrative costs necessary to receive TIFIA credit assistance.

improvements.

i. Calculation of Project Costs

For the purposes of determining whether a project meets the minimum project size requirement or the total project size for set-asides, the Department will count all future eligible project costs and related previously incurred costs (before application and selection for a grant). Previously incurred costs will be counted toward the minimum project size requirement only if they were eligible project costs under this Section and were expended as part of the project for which the applicant seeks funds.

Although those previously incurred costs may be used for meeting the minimum project size thresholds described in this Section, they cannot be reimbursed with grant funds, nor will they count toward the project’s required non-Federal share (see Section C.4).

Table 1 Summary of Project Size Designations

Program MEGA INFRA Rural

Project Size

Designation

>$500M in Costs

$100M-

$500M in costs

Large

>$100M* in

Small

<$100M* in costs

None None

*7 states have a different, lower threshold for large vs. small between $66 million and $91 million

(INFRA); consult Section C.3.iv for exceptions

ii. Eligibility of Development Phase Activities

Development phase activities and other planning or pre-construction activities are eligible costs.

These may be eligible costs as part of capital construction projects, or as a standalone activity.

However, applicants should carefully review the selection criteria and evaluation of statutory requirements described in Section E; development phase activities as a standalone project may be less competitive by nature of the evaluation structure described in Section E.

iii. Mega

The Department will designate Mega applications as projects greater than $500 million in total project cost, and as projects greater than $100 million but less than $500 million in total project cost.

Per statute, for each fiscal year of Mega funds, 50 percent of available funds are reserved for projects greater than $500 million in cost, and 50 percent are reserved for projects between $100 million and

$500 million in cost.

iv. INFRA

The Department will designate INFRA applications as “large” or “small” based on the definition in

23 U.S.C. § 117 as described in the following sections. Per statute, a minimum of 15 percent of available funds are reserved for small projects, and a maximum of 85 percent of funds are reserved for large projects.

a. Large Projects

The minimum project size for large projects is the lesser of (1) $100 million; (2) 30 percent of a State’s most recent Federal-aid apportionment if the project is located in one State.

The only States that have a large project threshold lower than $100 million are listed below with their thresholds, which are based on the FY 2024 Federal-aid apportionment:

• Delaware: $70 million

• District of Columbia: $66 million

• Hawaii: $70 million

• Maine: $76 million

• New Hampshire: $68 million

• Rhode Island: $91 million

• Vermont: $84 million

All multi-State projects meet the $100 million threshold. Per statute, an INFRA Large grant must be at least $25 million.

b. Small Projects

A small project is an eligible project that does not meet the minimum project size described in the previous Section. Per statute, an INFRA Small grant must be at least $5 million.

v. Rural

The Department will designate Rural applications as seeking at least $25 million or as seeking less than $25 million. Per statute, at least 90 percent of Rural grant amounts must be at least $25 million, and up to 10 percent of Rural grants may be for grant amounts of less than $25 million.

4. Cost Sharing or Matching

The table below presents a summary of cost share requirements, but applicants should read this section in full.

Table 2 Summary of Cost Share Requirements by Program

Program MEGA INFRA Rural

Project

Size

>$500M in

Costs

$100M-

$500M in

>$100M* in costs

<$100M* in costs None None

Award

Size

No Award minimum

No Award minimum

$25 million award minimum

$5 million award minimum

$25 million award minimum

No Award minimum

Cost Share

Max 60% Grant Cost

Share, Max 80% Federal

Max 60% Grant Cost

Share, Max 80% Federal**

Max 80% Grant Cost

Share***, Max 100%

Federal

*7 states have a different, lower threshold for large vs. small between $66 million and $91 million (INFRA)

**11 States have a higher, sliding scale max federal share between 80% and 95% (INFRA)

***Appalachian Development Highway System Projects and Denali Access Projects may have 100% Grant share (Rural)

i. Mega

Mega grants may be used for up to 60 percent of future total eligible project costs. Other

Federal assistance may satisfy the non-Mega share requirement for a Mega grant, but total Federal assistance for a project receiving a Mega grant may not exceed 80 percent of future total eligible project costs.

ii. INFRA

INFRA grants may be used for up to 60 percent of future eligible project costs. Other

Federal assistance may satisfy the non-INFRA share requirement for an INFRA grant, but total

Federal assistance for a project receiving an INFRA grant may not exceed 80 percent of future total eligible project costs, except that, for States with a population density of not more than 80 persons per square mile of land area, based on the 2010 census, the maximum share of the total

Federal assistance provided for a project receiving a grant under this section shall be the applicable share under 23 U.S.C. § 120(b). The following chart identifies the maximum total

Federal cost share for INFRA projects, under such section 120(b):

Table 3 States with Exceptions to Maximum Federal Share for the INFRA Program

Maximum Federal Share for INFRA Projects in States with Exceptions under 23 U.S.C. § 120(b)

Alaska 90.97% Montana 82.75%

Arizona 90.94% Nevada 94.89%

Colorado 82.79% New Mexico 85.44%

Idaho 84.97% Oregon 84.63%

Montana 82.75% South Dakota 81.95%

Nevada 94.89% Utah 89.52%

New Mexico 85.44% Wyoming 86.77%

For the INFRA program, if a Federal land management agency applies jointly with a State or group of States, and that agency carries out the project, then Federal funds that were not made available under titles 23 or 49 of the U.S.C. may be used for the non-Federal share.

Statute specifies that $150 million in available INFRA funding for each of the fiscal years

2022 to 2026 be set aside for an INFRA Leverage Pilot program. The INFRA Leverage Pilot program will fund projects with a Federal share of less than 50 percent. Not less than 10 percent of the INFRA Leverage Pilot funds will be awarded to small INFRA projects, as defined in

Section C, and not less than 25 percent of the INFRA Leverage Pilot funds will be awarded to rural projects, as defined in Section C. For the INFRA Leverage Pilot, at least 50 percent of the project’s future eligible project costs must be funded by non-Federal contributions for the life of the project.

iii. Rural

Rural grants may be used for up to 80 percent of future eligible project costs, except eligible projects that further the completion of a designated segment of the Appalachian Development

Highway System under 40 U.S.C. § 14501, or address a surface transportation infrastructure need identified for the Denali access system program under section 309 of the Denali

Commission Act of 1998 may apply for up to 100 percent of the project costs. Other Federal assistance may satisfy the non-Rural share requirement for a Rural grant up to 100 percent of project costs.

Please note that the Rural Program has a higher statutory maximum Federal share than Mega and INFRA. Applications which seek funding above the statutory maximum grant or Federal share for MEGA and INFRA will only be eligible for an award in that amount from the Rural program.

iv. Universal Cost Sharing or Matching Guidance

Unless otherwise authorized by statute, non-Federal cost-share may not be counted as non-

Federal share for both the programs under MPDG and another Federal program. For any project under MPDG, the Department cannot consider previously incurred costs or previously expended or encumbered funds towards the matching requirement. Matching funds are subject to the same

Federal requirements described in Section F.2.iii as awarded funds. See Section D.2 for information about documenting cost sharing in the application.

Non-Federal sources include State funds originating from programs funded by State revenue, local funds originating from State or local revenue-funded programs, private funds, or other funding sources of non-Federal origin.

For the purpose of evaluating eligibility under the statutory limit on total Federal assistance in the Mega and INFRA programs, funds from Transportation Infrastructure

Finance and Innovation Act (TIFIA) and Railroad Rehabilitation & Improvement Financing

(RRIF) credit assistance programs are considered Federal assistance and, combined with other

Federal assistance, may not exceed 80 percent of the future eligible project costs, except as indicated for the INFRA program (see Section C.4.ii).

5. Project Requirements for Each Funding Opportunity

Applicants only need to address the requirements for the program or programs from which they are requesting funding in in their application.

i. Mega

For a Mega project to be selected, the Department must determine that the project meets all six requirements described in 49 U.S.C. § 6701(f)(1) and 49 U.S.C. § 6701(g) which are listed below and further described in Sections D.2.vii and E.1.v.b. If an application consists of multiple components with independent utility, the Department must determine that each component meets each requirement to select it for an award.

1. The project is likely to generate national or regional economic, mobility, or safety benefits.

2. The project is in significant need of Federal funding.

3. The project will be cost-effective.

4. With respect to related non-Federal financial commitments, one or more stable and dependable funding or financing sources are available to construct, maintain, and operate the project, and to cover cost increases.

5. The applicant has, or will have, sufficient legal, financial, and technical capacity to carry out the project.

6. The application includes a plan for the collection and analysis of data to identify the impacts of the project and accuracy of forecasts included in the application.

ii. INFRA

a. Large Project Requirements

For a large project to be selected, the Department must determine that the project meets seven requirements described in 23 U.S.C. § 117(g) listed below and further described in Sections D.2.vii and E.1.v.b. If an application consists of multiple components with independent utility, the

Department must determine that each component meets each requirement to select it for an award.

1. The project will generate national or regional economic, mobility, or safety benefits.

2. The project will be cost-effective.

3. The project will contribute to the accomplishment of one or more of the goals described in 23

U.S.C. § 150.

4. The project is based on the results of preliminary engineering.

5. With respect to related non-Federal financial commitments, one or more stable and dependable funding or financing sources are available to construct, maintain, and operate the project, and contingency amounts are available to cover unanticipated cost increases.

6. The project cannot be easily and efficiently completed without other Federal funding or financial assistance available to the project sponsor.

7. The project is reasonably expected to begin construction no later than 18 months after the date of obligation of funds for the project.

b. Small Project Requirements

For a small project to be selected, the Department must consider the cost-effectiveness of the proposed project, the effect of the proposed project on mobility in the State and region in which the project is carried out, and the effect of the proposed project on safety on freight corridors with significant hazards, such as high winds, heavy snowfall, flooding, rockslides, mudslides, wildfire, wildlife crossing onto the roadway, or steep grades.

iii. Rural

For a Rural project to be selected, the Department must determine that the project meets five requirements described in 23 U.S.C. § 173(g) and below and further described in Sections D.2.vii and E.1.v.b. If an application consists of multiple components with independent utility, the

Department must determine that each component meets each requirement, to select it for an award.

1. The project will generate regional economic, mobility, or safety benefits.

2. The project will be cost-effective.

3. The project will contribute to the accomplishment of 1 or more of the national goals under 23

U.S.C. § 150.

4. The project is based on the results of preliminary engineering.

5. The project is reasonably expected to begin construction not later than 18 months after the date of obligation of funds for the project.

6. Definition of Rural and Urban Areas

The INFRA and Rural program statutes define a rural area as an area outside an Urbanized

Area3 with a population of over 200,000, as designated by the U.S. Census Bureau.4 Please note that rural and urban definitions differ in some other Department programs. Cost share requirements and minimum grant awards are the same for projects located in rural and urban areas for MPDG programs. A project located partly in an area designated as “urban” and partly in an area designated as “rural” by this definition will be designated as “urban” if the majority of the project’s costs will be spent in the area designated as “urban.” Conversely, a project located partly in an area designated as “urban” and partly in an area designated as “rural” by this definition will be designated as “rural” if the majority of the project’s costs will be spent in the area designated as

“rural.” However, if a project consists of multiple components, as described under section C.8 or

C.9, then for each separate component the Department may determine whether that component is rural or urban. In some circumstances, including networks of projects under section C.9 that cover wide geographic regions, this component-by-component determination may result in awards that include urban and rural funds.

7. Areas of Persistent Poverty and Historically Disadvantaged Communities

BIL specifies that the Secretary consider, as an additional consideration for the Mega program, whether a project may benefit an Area of Persistent Poverty or a Historically

Disadvantaged Community. The Department provides a map of these areas for ease of reference:

https://maps.dot.gov/BTS/GrantProjectLocationVerification/.

Area of Persistent Poverty (APP) – Defined by BIL as: (1) any county that has consistently had greater than or equal to 20 percent of the population living in poverty during the 30-year period preceding November 15, 2021, as measured by the 1990 and 2000 decennial census and the most recent annual Small Area Income Poverty Estimates as estimated by the Bureau of the

Census; (2) any census tract with a poverty rate of at least 20 percent as measured by the 2014-

2018 5-year data series available from the American Community Survey of the Bureau of the

Census; or (3) any territory or possession of the United States. A county satisfies this definition only if 20 percent of its population was living in poverty in all three of the listed datasets: (1) the

1990 decennial census; (2) the 2000 decennial census; and (3) the 2022 Small Area Income

Poverty Estimates.

Historically Disadvantaged Communities (HDC) – The definition of historically disadvantaged communities follows the Justice40 Interim Guidance Addendum, issued by the

White House Office of Management and Budget (OMB), White House Council on

Environmental Quality (CEQ), and Climate Policy Office (CPO):5 (1) any census tract or tracts identified as disadvantaged in the Climate and Economic Justice Screening Tool

3 The 2020 Census no longer utilizes the term “urbanized area” but provides designations of “urban areas” and their populations.

For the purpose of this NOFO, Census-designated “urbanized area” means Census-designated “urban area.”

4 See www.transportation.gov/grants/infra-urban-and-rural-areas for the list of urban areas with a population of 200,000 or more.

5 M-23-09 (Jan. 2023), https://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf.

https://maps.dot.gov/BTS/GrantProjectLocationVerification/ http://www.transportation.gov/grants/infra-urban-and-rural-areas https://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf

(https://screeningtool.geoplatform.gov) (CEJST), created by CEQ, which identifies such communities that have been marginalized by underinvestment and overburdened by pollution;

(2) any Federally Recognized Tribe or Tribal entity, whether or not it has land. HDC or

“disadvantaged communities” are used interchangeably throughout this document.

Section E describes how outcome criteria may consider a project’s benefits to an APP or

HDC, regardless of whether the project is located in those areas. To make a designation for project location, a project located in both (1) APP or HDC areas and (2) areas that are neither

APP nor HDC areas will be designated as APP or HDC if the majority of the project’s costs will be spent in the area that qualifies as APP or HDC.

8. Project Components

An application may describe a project that contains more than one component. The

Department may award funds for a component, instead of the larger project, if that component

(1) independently meets minimum award amounts described in Section B and all eligibility requirements described in Section C, including the project requirements of the program(s) being applied for described in Sections C and D.2; (2) independently aligns well with the selection criteria specified in Section E; and (3) meets National Environmental Policy Act (NEPA) requirements with respect to independent utility. In this context, independent utility means that the component will represent a transportation improvement that is usable and represents a reasonable expenditure of the Department funds even if no other improvements are made in the area, and will be ready for intended use upon completion of that component’s construction. If an application describes multiple components, the application should demonstrate how the components collectively advance the purposes of the funding program or programs for which the applicant is applying. An applicant should not add multiple components to a single application merely to aggregate costs or to avoid submitting multiple applications.

Applicants should be aware that, depending upon applicable Federal law and the relationship among project components, an award funding only some project components may make other project components subject to Federal requirements as described in Section F.2.ii.

For example, under 40 CFR § 1509(e), the NEPA review for the funded project component may need to include evaluation of all project components as connected, similar, or cumulative actions.

The Department strongly encourages applicants to identify in their applications the project components that meet the independent utility definition above and separately detail the costs and program funding (Mega, INFRA, and/or Rural) requested for each component. If the application identifies one or more independent project components, the application should clearly identify how each independent component addresses selection criteria and produces benefits on its own, in addition to describing how the full proposal of which the independent component is a part addresses the selection criteria.

9. Network of Projects

An application may describe and request funding for a network of projects. A network of projects is a single grant award that funds multiple projects addressing the same transportation challenge. For example, if an applicant seeks to improve efficiency along a rail corridor, then their application might propose one award for four grade separation projects at four different railway-highway crossings. Each of the four projects would independently increase rail safety and reduce roadway congestion but the overall benefits would be greater if the projects were completed together under a single award. Please review Section C.2.iii to understand how Rural program projects could be bundled.

The Department will evaluate applications that describe networks of projects similar to how it evaluates projects with multiple components. Because of their similarities, the guidance in

Section C.8. is applicable to networks of projects, and applicants should follow that guidance on how to present information in their application. As with project components, depending upon applicable Federal law and the relationship among projects within a network of projects, an award that funds only some projects in a network may make other projects subject to Federal requirements as described in Section F.2.

10. Application Limit

To encourage applicants to prioritize their MPDG opportunity submissions, each eligible applicant may submit three unique applications per grant program (Mega, INFRA, and Rural), for a total application limit of nine. The three-unique-applications-per-grant program applies only to applications where the applicant is the lead applicant. There is no limit on applications for which an applicant can be listed as a partnering agency. If a lead applicant submits more than three unique applications to a particular grant program as the lead applicant, only the first three received will be considered.

D. Application and Submission Information

1. Address

Applications must be submitted through www.Grants.gov. Instructions for submitting applications can be found at https://www.transportation.gov/grants/mpdg-how-apply. Applicants submitting applications to be considered under multiple MPDG programs only need to submit one package under one assistance listing in Grants.gov; there is no need to submit the same application under multiple assistance listings.

2. Content and Form of Application

The application must include the Standard Form 424 (Application for Federal

Assistance), Standard Form 424C (Budget Information for Construction Programs), the

“MPDG Project Information Form” available at www.transportation.gov/grants/mpdg-project-information-form, and individual application attachments as outlined in the table below. DOT expects the application will be submitted in the following order, using the following file names:

Information File Name NOFO Section for Guidance

Page

Limit

SF-424 (filled in grants.gov, not attachment)

SF-424 N/A N/A

SF-424C (filled in grants.gov, not attachment)

SF-424C N/A N/A

Project Information Form (in Excel) MPDG Project N/A N/A http://www.grants.gov/ https://www.transportation.gov/grants/mpdg-how-apply http://www.transportation.gov/grants/mpdg-project-information-form

Information Form

Project Description

Project Description D.2.i 5 pages

Project Location File (zipped Shapefile, KML/KMZ)

Location File-State-

Project Name (ex:

Location File-AK-

Highway Project)

D.2.ii N/A

Project Budget Project Budget D.2.iii 5 pages

Funding Commitment Documentation

Funding Commitments D.2.iii.e N/A

Outcome Criteria

Outcome Criteria

Narrative D.2.iv and E.1.ii 15 pages

Benefit- Cost Analysis Narrative

BCA Narrative D.2.v and E.1.iii N/A

Benefit- Cost Analysis Calculations

(Excel recommended) BCA Calculations D.2.v and E.1.iii N/A

Project Readiness Project Readiness D.2.vi and E.1. iv. 5 Pages

Project Requirements

Project Requirements D.2.vii. and

E.1.v.b.

5 Pages

Mega Data Plan (if applicable)

Mega Data Plan-State-

Project Name (ex: Mega

Data Plan-AK-Highway

Project)

D.2.viii N/A

Letters of Support (Optional) Letters Of Support E.1.iv.a N/A

DOT expects the application attachments/files be prepared with standard formatting preferences (a single-spaced document, using a standard 12-point font such as Times New

Roman, with 1-inch margins), and documents should be submitted in PDF, unless otherwise specified (i.e., project information form should be in Excel, and the BCA calculations could be submitted in Excel).

The application files should collectively include all information necessary for DOT to determine that the project satisfies requirements and to assess the selection criteria specified in

Section E.1. DOT expects applications to be complete upon submission. DOT may ask any applicant to supplement data in its application but is not required to do so. Unsupported claims related to the selection criteria will negatively affect competitiveness of the application, as described throughout Section E.2.

Supporting documents may be attached in addition to the listed files, but evaluators are not required to review supporting documents as part of the review described in Section E. Web links to supporting documentation may be provided rather than copies of these supporting materials, but applicants are advised to ensure the link is accessible for the duration of the evaluation period. DOT expects application files to include the following detailed information:

i. Project Description

This file must provide a description and statement of work for the project that focuses on the technical and engineering aspects of the project, the current design status of the project, the transportation challenges that the project is intended to address, and how the project is expected address those challenges. This file may also discuss the project’s history, including a description of any previously completed components. This file should also describe the project location in a narrative fashion, including a detailed geographical description and map(s), to supplement the project location file.

ii. Location

Applicants should submit one of the following file types with project location identification, which will be used to verify the urban/rural designation, the Area of Persistent

Poverty designation, and the Historically Disadvantaged Community designation. Acceptable file types are zipped Shapefile or KML/KMZ.