Last week, the Department of Transportation (DOT) announced nearly $60 billion of funding available to states through DOT formula grant programs in fiscal year (FY) 2023. States may use these funds, authorized under the Bipartisan Infrastructure Law, to support critical infrastructure, including roads, bridges, and environmental and safety improvements. The FY2023 grant funds represent a substantial increase from FY2021. In particular, states will see an increase in grant funds for highway and bridge projects:

Significantly Increased Formula Program
with links to state apportionment

Percentage increase over FY21

Bridge Formula Program

391%

Appalachian Development Highway System

146%

National Electric Vehicle Infrastructure Formula Program

New

Federal-aid Highway Programs – Applicable to all States

Highway Safety Improvement Program

26%

Metropolitan Planning Program

25%

Carbon Reduction Program

New

Promoting Resilient Operations for Transformative, Efficient, and Cost-Saving Transportation Formula ("PROTECT") Program

New

Federal-aid Highway Programs – Applicable toSelected States

National Highway Performance Program

20%

Surface Transportation Block Grant Program

16%


The Bipartisan Infrastructure Law also created three new programs to support carbon reduction, make transportation infrastructure more resilient to future weather events and other natural disasters, and promote use of electronic vehicles.

Companies interested in working on contracts under these grants should monitor infrastructure funding at the federal and state level to determine where, and how, it creates business opportunities. We are continuing to closely tracking the implementation of the Bipartisan Infrastructure Law to help clients navigate the unprecedented levels of infrastructure funding taking place this year, and over the next four years.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.