CSAC Bulletin Article

US DOT Announces BUILD Grants

May 3, 2018

The U.S. Department of Transportation opened the application period for a new infrastructure grant program known as the Better Utilizing Investments to Leverage Development (BUILD) initiative.  According to DOT, BUILD grants will replace the current Transportation Investment Generating Economic Recovery (TIGER) grant program.

Pursuant to DOT’s announcement, $1.5 billion in BUILD grants will be awarded on a competitive basis for infrastructure projects that are designed to have a significant local or regional impact.  Program funds will be available to support roads, bridges, transit, rail, ports or intermodal transportation.  Eligible applicants for BUILD grants include State, local, and tribal governments, as well as transit agencies, port authorities, metropolitan planning organizations, and other political subdivisions.

With regard to cost sharing, BUILD grants will cover up to 80 percent of an eligible project in urban areas and up to 100 percent for projects in rural communities.  Furthermore, by law, no less than 30 percent of program funds, or $450 million, must be used for projects located in rural areas.

It should be noted that the fiscal year 2018 Omnibus Appropriations Act also allows up to 20 percent of available BUILD funds to be used by DOT to pay the subsidy and administrative costs for a project receiving credit assistance under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program.

The deadline for BUILD program applications is July 19.

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