BUILD America 250 Act

124. Grants for rebuilding America’s vital engineering structures program

(a) State apportionment mechanism

(1) In general. The Secretary shall establish a program to provide grants to each State in accordance with the apportionment formula described in paragraph (3) for the construction of new bridges and to improve the safety, efficiency, reliability, capacity, and utility of bridges and other structures in the United States.

(2) Eligible projects

(A) In general. Funds apportioned to a State under this subsection may only be obligated for projects to construct, replace, rehabilitate, preserve, protect, expand, or improve—

(i) a bridge on a public road; or

(ii) a culvert.

(B) Costs. A grant provided for an eligible project described in subparagraph (A) may be used for—

(i) development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities;

(ii) 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 improvements directly related to improving system performance; and

(iii) expenses relating to the protection of a bridge (including as described in section 133(b)(10)).

(C) Bundling of bridge projects. Projects bundled pursuant to section 144(j) shall be considered eligible under subparagraph (A).

(3) Apportionment

(A) In general. Amounts made available to carry out this subsection for a fiscal year shall be apportioned among each State as follows:

(i) $75,000,000 shall be apportioned to each State.

(ii) The remainder of amounts not otherwise distributed under clause (i) shall be apportioned among each State as follows:

(I) 25 percent by the proportion of the total bridge deck area in such State that bears to the sum of total bridge deck area in all States.

(II) 25 percent by the proportion of the total bridge deck area classified as in poor condition in such State that bears to the sum of the total bridge deck area classified in poor condition in all States.

(III) 25 percent by the proportion of the total bridge deck area of bridges on the National Highway System in such State that bears to the sum of the total National Highway System bridge deck area in all States.

(IV) 25 percent by the proportion of the total bridge deck area of bridges on the National Highway System that is classified as in poor condition in such State that bears to the sum of the total bridge deck area of bridges on the National Highway System that is classified as in poor condition in all States.

(B) Minimum apportionment. Notwithstanding subparagraph (A), the Secretary shall adjust the amounts apportioned to each State to ensure that each State receives an amount equal to at least the amount such State received in fiscal year 2026 under paragraph (1) under the heading Highway Infrastructure Programs in title VIII of division J of the Infrastructure Investment and Jobs Act (135 Stat. 1420), commonly referred to as the Bridge Formula Program.

(C) Set aside for off-system bridges

(i) In general. Except as provided under clause (ii), of the amounts apportioned to a State under this paragraph for each fiscal year, the State shall ensure that not less than 20 percent of such amounts are used for purposes relating to off-system bridges (as defined in section 133(f)(1)).

(ii) Exception. The Secretary, in consultation with relevant State and local officials, may reduce the set aside requirement for a State under clause (i) if the Secretary determines that the State has an insufficient number of projects relating to off-system bridges.

(iii) Local consultation. In determining the off-system bridges for which amounts shall be set aside under this subparagraph shall be used, each State shall consult with, as applicable, relevant metropolitan planning organizations, regional transportation planning organizations, and other non-State owners of off-system bridges.

(iv) Inclusion of locally-owned bridges. Amounts set aside under subparagraph (D) that are used for purposes relating to locally-owned bridges that are off-system bridges shall count towards the amount required to be used for off-system bridges by a State under clause (i).

(D) Set aside for locally-owned bridges

(i) In general. Except as provided under clause (ii), of the amounts apportioned to a State under this paragraph for each fiscal year, the State shall set aside not less than 25 percent to fund a competitive process for locally-owned bridges as described in clause (iv) of this subparagraph.

(ii) Exception. The Secretary, in consultation with relevant State and local officials, may reduce the set aside requirement for a State under clause (i) only if the Secretary determines that the State has an insufficient number of projects relating to locally-owned bridges.

(iii) Competitive process. A State required to obligate funds in accordance with this subparagraph shall conduct a competitive process to select projects for funding.

(iv) Locally-owned bridge defined. In this subsection, the term locally-owned bridge means a bridge owned by a county, town, township, city, municipality, or other local entity.

(E) Limitation

(i) In general. Except as provided in clause (ii), of the amounts apportioned to a State under this paragraph for each fiscal year, the State may use not more than 5 percent of such amounts for projects that consist solely of culvert replacement or rehabilitation.

(ii) Exception. The limitation under clause (i) shall not apply if a State is required by an injunction issued by a Federal court to modify or replace culverts.

(F) National bridge inventory. For purposes of determining the amount apportioned to each State pursuant to subparagraph (A), the Secretary shall calculate such formula using the most recently available data from the national bridge inventory established under section 144(b).

(G) Non-applicability. Section 165(b)(3) shall not apply to amounts apportioned under this subsection.

(4) Cost share. The Federal share of the cost of a project carried out under this subsection shall be determined in accordance with section 120, except that, in the case of such a project for an off-system bridge that is a locally-owned bridge or is owned by a federally-recognized Tribe, the Federal share shall be 95 percent.

(5) Transfers. A State may only transfer amounts apportioned under this subsection if the Secretary determines that the State has an insufficient number of eligible projects for which such amounts may be used.

(6) Treatment of projects. Notwithstanding any other provision of law, a project carried out with amounts apportioned under this subsection shall be treated as a project on a Federal-aid highway under this chapter.

(7) Set aside for Tribal transportation facility bridges. Of the amounts made available to carry out this subsection, the Secretary shall set aside 3 percent to carry out section 202(d).

(8) Set-aside for culverts. Of amounts made available to carry out this subsection, $200,000,000 for each fiscal year through fiscal year 2031 shall be available to the Secretary, through the Administrator of the Federal Highway Administration, to make competitive grants under section 6703 of title 49.

(9) Reports

(A) Reports to Secretary

(i) In general. Each State that receives a grant under this section shall submit to the Secretary, on an annual basis, a report describing—

(I) progress made in completing projects with funds apportioned under this subsection; and

(II) the effectiveness of such projects in reducing the number of bridges in poor condition and that require posted weight restrictions.

(ii) Publication. The Secretary shall publish each report submitted under clause (i) on a publicly available website of the Secretary.

(B) Report to Congress. The Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate, and make publicly available, an annual report describing—

(i) projects carried out under this subsection;

(ii) national trends regarding the condition of bridges, including the effectiveness of such projects in reducing the number of bridges in poor condition and that require posted weight restrictions; and

(iii) policy recommendations to improve the effectiveness of the State apportionment mechanism established under this subsection.

(b) Bridge completion program

(1) In general. The Secretary shall establish a program for the purpose of awarding grants, on a competitive basis, to eligible entities to improve the safety, efficiency, reliability, capacity, and utility of bridges in the United States.

(2) Eligible projects

(A) In general. A grant provided under this subsection may only be used for projects to construct, replace, rehabilitate, preserve, protect, expand, or improve a bridge on the National Highway System.

(B) Inclusion. In this subsection, the term eligible project includes—

(i) a bundle of projects described in subparagraph (A), regardless of whether the bundle of projects meets the requirements of section 144(j)(5); and

(ii) a project to replace or rehabilitate culverts that is eligible under section 176(d).

(C) Costs. A grant provided for a project described in subparagraph (A) may be used for—

(i) development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities;

(ii) 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 improvements directly related to improving system performance; and

(iii) expenses related to the protection of a bridge as described in section 133(b)(10).

(3) Grant amounts. A grant provided under this subsection shall be—

(A) in an amount that is sufficient (in combination with other financial resources identified in the application for such grant) to fully fund the project for which the grant is awarded; and

(B) not less than $50,000,000.

(4) Cost share

(A) Federal share. The amount of assistance provided by the Secretary under this subsection for a project shall not exceed 50 percent of the total cost of the project.

(B) Other funds. Federal assistance other than a grant provided under this subsection may be used to satisfy the non-Federal share of the cost of a project for which a grant is provided under this subsection, except that the total Federal assistance provided for such a project may not exceed the applicable Federal share for the project under section 120.

(C) Federal land management agencies and Tribal governments. Notwithstanding any other provision of law, Federal assistance other than a grant provided under this subsection may be used to pay the remaining share of the cost of a project carried out with a grant provided under this subsection by a Federal land management agency or a Tribal government or consortium of Tribal governments.

(5) Competitive process and evaluation

(A) Applications. To be eligible for a grant under this subsection, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including all necessary information required for the Secretary to—

(i) determine that the project meets and will continue to meet the applicable requirements under this subsection; and

(ii) otherwise evaluate the project, including using the criteria described in subparagraph (B).

(B) Considerations. In selecting projects for which to provide a grant under this subsection, the Secretary shall consider the following:

(i) The average daily person and freight throughput expected to be supported by the project.

(ii) The expected safety benefits of the project.

(iii) The expected national or regional economic benefits of the project.

(iv) In the case of a project that is bundled with related projects, the extent to which the project will demonstrate cost savings.

(v) In the case of a project proposed to be carried out by a Federal land management agency, the extent to which the grant would reduce a Federal liability or Federal infrastructure maintenance backlog.

(vi) Geographic diversity among grant recipients, including the need to balance between the needs of rural and urban communities.

(vii) The extent to which the project is for a bridge in poor condition or at risk of falling into poor condition.

(viii) The extent to which the project is for a bridge that does not meet the most up-to-date geometric design standards based on the type and use of the bridge.

(ix) The extent to which the project is for a bridge that does not meet the most up-to-date seismic design standards or incorporate adequate impact protection measures.

(6) TIFIA program. On the request of an eligible entity carrying out a project with a grant provided under this subsection, the Secretary may use amounts awarded to the entity to pay subsidy and administrative costs necessary to provide to the entity Federal credit assistance under chapter 6 with respect to the project for which the grant was awarded.

(7) Multiyear agreements

(A) In general. A project carried out with a grant provided under this subsection may be carried out through a multiyear grant agreement in accordance with this paragraph.

(B) Requirements. A multiyear grant agreement for a project described in subparagraph (A) shall—

(i) establish the terms of participation by the Federal Government in the project;

(ii) establish the maximum amount of Federal financial assistance for the project in accordance with paragraph (4);

(iii) establish a payout schedule for the project that provides for disbursement of the full grant amount by not later than 4 fiscal years after the fiscal year in which the initial amount is provided;

(iv) determine the period of time for completing the project, even if the period extends beyond the period of an authorization; and

(v) attempt to improve timely and efficient management of the project, consistent with all applicable Federal laws (including regulations).

(C) Special financial rules

(i) In general. A multiyear grant agreement under this paragraph—

(I) shall obligate an amount of available budget authority specified in law; and

(II) may include a commitment, contingent on an amount to be specified in law in advance for commitments under this paragraph, to obligate an additional amount from future available budget authority specified in law.

(ii) Statement of contingent commitment. The agreement shall state that the contingent commitment is not an obligation of the Federal Government.

(iii) Interests and other financing costs

(I) In general. Interest and other financing costs of carrying out a part of the project within a reasonable time shall be considered a cost of carrying out the project under a multiyear grant agreement, except that the eligible costs may not be more than the cost of the most favorable financing terms reasonably available for the project at the time of borrowing.

(II) Certification. The applicant shall certify to the Secretary that the applicant has shown reasonable diligence in seeking the most favorable financing terms.

(iv) Advance payment. Notwithstanding any other provision of law, an eligible entity carrying out a project under a multiyear grant agreement—

(I) may use funds made available to the entity under this title for eligible project costs of the project until the amount specified in the multiyear grant agreement for the project for that fiscal year becomes available for obligation; and

(II) if the eligible entity uses funds described in subclause (I), the funds used shall be reimbursed from the amount made available under the multiyear grant agreement for the project.

(8) Undertaking parts of projects in advance under letters of no prejudice

(A) In general. The Secretary may pay to an eligible entity all eligible project costs described in paragraph (2)(B), including costs for an activity for a project incurred prior to the date on which the project receives funding under this subsection if—

(i) before the eligible entity carries out the activity, the Secretary approves through a letter to the applicant the activity in the same manner as the Secretary approves other activities as eligible under this subsection;

(ii) a record of decision, a finding of no significant impact, or a categorical exclusion under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) has been issued for the project; and

(iii) the activity is initially carried out without Federal assistance and in accordance with all applicable procedures and requirements.

(B) Interests and other financing costs

(i) In general. For the purposes of subparagraph (A), the cost of carrying out an activity for a project under this subsection includes the amount of interest and other financing costs, including any interest earned and payable on bonds, to the extent the interest and other financing costs are expended in carrying out the activity for the project, except that interest and other financing costs may not be more than the cost of the most favorable financing terms reasonably available for the project at the time of borrowing.

(ii) Certification. The applicant shall certify to the Secretary that the applicant has shown reasonable diligence in seeking the most favorable financing terms under clause (i).

(C) No obligation. An approval by the Secretary under subparagraph (A)(i) shall not constitute an obligation of the Federal Government.

(9) Divestiture consideration for federally-owned bridges. In the case of a bridge owned by a Federal land management agency for which the agency applies for a grant under this subsection, the agency—

(A) shall consider options to divest the bridge to a State or local entity after completion of the project; and

(B) may apply jointly with the State or local entity to which the bridge may be divested.

(10) Treatment of projects. Notwithstanding any other provision of law, a project assisted under this subsection shall be treated as a project on a Federal-aid highway under this chapter.

(11) Congressional notification. Not later than 3 days before providing a grant for a project under this subsection, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a written notification of such grant.

(12) Eligible entity defined. In this subsection, the term eligible entity means any of the following:

(A) A State or a group of States.

(B) A metropolitan planning organization that serves an urbanized area (as designated by the Bureau of Census) with a population over 200,000.

(C) A unit of local government or group of local governments.

(D) A political subdivision of a State or local government.

(E) A special purpose district or public authority with a transportation function.

(F) A Federal land management agency.

(G) A Tribal government or a consortium of Tribal governments.

(H) A multistate or multijurisdictional group of entities described in subparagraphs (A) through (G).

124. Grants for rebuilding America’s vital engineering structures program.