Federal Transit Capital Investment Grants

The Capital Investment Grant Program is the Federal Government's primary financial resource for supporting transit capital projects that are locally planned, implemented, and operated. It provides funding for fixed guideway investments such as new an

The Capital Investment Grant program has helped to build dozens of new or extended transit fixed guideway systems across the country. These public transportation investments have improved the mobility of millions of Americans, provided alternatives to congested roadways, and fostered the development of more viable, safe, and livable communities.

Public agencies, including States; municipalities and other subdivisions of States; public agencies and instrumentalities of one or more States; and public corporations, boards, and commissions established under State law. Applicant must have legal, financial, and technical capacity to carry out proposed project, including safety and security aspects, and maintain facilities and equipment purchased with Federal assistance. Private non-profit organizations are not eligible direct recipients.

Public agencies, including States; municipalities and other subdivisions of States; public agencies and instrumentalities of one or more States; and public corporations, boards, and commissions established under State law. Applicant must have legal, financial, and technical capacity to carry out proposed project, including safety and security aspects, and maintain facilities and equipment purchased with Federal assistance. Private non-profit organizations are not eligible direct recipients.

IIJA includes three categories of eligible projects under the Capital Investment Grant Program, referred to as New Starts, Core Capacity, and Small Starts projects. New Starts projects are those whose sponsors request $150 million or more in Capital Investment Grant Program funds or have an anticipated total capital cost of $400 million or more. Core Capacity projects are substantial investments in an existing fixed-guideway corridor that is at capacity today or will be in ten years, where the proposed project will increase capacity by not less than 10 percent. Small Starts projects are defined as those whose sponsors request less than $150 million in Capital Investment Grant Program funds and have an anticipated total capital cost of less than $400 million. The Pilot Program for Transit-Oriented Development (TOD) Planning, authorized under Section 20005(b) of the Moving Ahead for Progress in the 21st Century Act (MAP-21), Public Law 112-141, July 6, 2012, with funding provided under 49 U.S.C. 5338(a)(2)(B), as amended by the Section 30009 of the Bipartisan Infrastructure Law, enacted as the IIJA (Pub. L. 117-58), provides grants for comprehensive or site-specific planning activities conducted in conjunction with the development of new fixed-guideway or core capacity improvement projects. The comprehensive or site-specific planning work must help to enhance economic development, ridership, and other goals established during the project development and engineering processes; facilitate multimodal connectivity and accessibility; increase access to transit hubs for pedestrian and bicycle traffic; enable mixed-use development; identify infrastructure needs associated with the eligible project; and include private sector participation. The Expedited Project Delivery (EPD) Pilot Program, authorized by Section 3005(b) of the FAST Act, as amended by the IIJA, is aimed at expediting delivery of new fixed guideway capital projects, small starts projects, or core capacity improvement projects. These projects must utilize public-private partnerships, be operated and maintained by employees of an existing public transportation provider, and have a federal share not exceeding 25 percent of the project cost. In FY 2023, a total of $3.8 billion was appropriated for the Capital Investment Grants Program, that included a total of $483.4 million for the EPD Pilot Program, and a total of $13 million was appropriated for the Pilot Program for TOD Planning. In addition, a total of $425 million was appropriated as additional funding for CIG projects that had already received Full Funding Grant Agreements.

CIG funding may be used only for transit capital projects, specifically: 1. Project Development and Engineering Planning, environmental review (NEPA), project management, preliminary engineering, design work, cost estimation, and development of financial plans 2. Capital Construction - Guideway construction or expansion (rail, BRT, streetcar, ferry terminals), stations, platforms, and associated structures, track, power systems, signaling, and control systems and 3. Vehicles and Equipment, Railcars, buses (BRT-quality), streetcars, or ferry vessels and maintenance equipment and system-wide technology needed for the project; 4. Real Estate Acquisition, right-of-way acquisition and related relocation costs (Uniform Relocation Act) and 5. Project-Related Infrastructure - maintenance facilities, utilities relocation and pedestrian or bicycle improvements only if directly necessary for the CIG project.

Terms and conditions are contractually agreed on between FTA and the applicant.

Preapplication coordination is required. An environmental review is required for this listing. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. An environmental review is required for this program. The review will determine whether an environmental impact statement, environmental assessment, or categorical exclusion will satisfy environmental requirements.

Projects must meet the project justification, local financial commitment, and process criteria established in Section 5309, and should be consistent with Executive Order 12893, Principles for Federal Infrastructure Investments, issued January 26, 1994. Firm funding commitments, embodied in FFGAs or SSGAs, will not be made until the project sponsor has demonstrated that its project is ready for such an agreement, i.e., the project's development and design have progressed to the point where its scope, costs, benefits, and impacts are considered firm and final. FTA encourages project sponsors to provide an overmatch as a means of funding more projects and leveraging State and local financial resources as well as other Federal financial resources.

An FTA grant award obligating Federal funds is reflected in a construction grant agreement. Grants are awarded electronically using FTA's electronic grant award system,. In order to access this system, a user name and password are needed and can be obtained by contacting the regional offices. Once the funds are reserved in FTA's electronic grant award system and the project information has been reviewed and approved by Headquarters, the recipient must execute the grant agreement to access the funds.