BUILD America 250 Act

173 Surface transportation accelerator grant program

(a) In general. There is established a rural, urban, local, and regional surface transportation grant program, which shall consist of the programs established under subsections (c), (d), and (e) to provide financial assistance for projects eligible under such subsections.

(b) Administrative provisions

(1) Grant administration. The Secretary may—

(A) retain not more than a total of 2 percent of the funds made available to carry out this section and to review applications for grants under this section; and

(B) transfer portions of the funds retained under subparagraph (A) to the relevant Administrators to fund the award and oversight of grants provided under this section.

(2) Application. To be eligible to receive a grant under this section, an eligible entity under subsections (c), (d), or (e) shall submit to the Secretary an application in such form, at such time, and containing such information as the Secretary may require.

(3) Eligible project costs. An eligible entity may use funds from a grant under this section for—

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

(B) 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.

(4) Grants

(A) In general. In carrying out this section, the Secretary may make grants to eligible entities, on a competitive basis, in accordance with this section.

(B) Set-asides. Of amounts made available to carry out this section for each fiscal year—

(i) 25 percent shall be for grants under the rural surface transportation grant program under subsection (c);

(ii) 25 percent shall be for grants under the urban surface transportation grant program under subsection (d); and

(iii) 50 percent shall be for grants under the local and regional surface transportation grant program under subsection (e).

(5) Federal share

(A) In general. Except as provided in subparagraph (B), the Federal share of the cost of a project carried out with a grant administered under this section may not exceed 80 percent.

(B) Exceptions

(i) The Federal share of the cost of an eligible project that furthers the completion of a designated segment of the Appalachian Development Highway System under section 14501 of title 40, or addresses a surface transportation infrastructure need identified for the Denali access system program under section 309 of the Denali Commission Act of 1998 (42 U.S.C. 3121 note; Public Law 105–277) shall be up to 100 percent, as determined by the State.

(ii) The Federal share of the cost of an eligible project for a grant carried out in an area of persistent poverty (as defined in section 6702(a) of title 49) may exceed 80 percent, at the discretion of the Secretary.

(C) Use of other Federal assistance. Federal assistance other than a grant under the program may be used to satisfy the non-Federal share of the cost of a project carried out with a grant under the program.

(D) Additional requirements

(i) Modal requirements

(I) In general. Except as otherwise provided in subclause (II), projects funded under this section shall be treated as projects on a Federal-aid highway under this chapter.

(II) Exceptions. The Secretary shall—

(aa) for a transit project, apply the requirements of chapter 53 of title 49;

(bb) for a rail project, apply the requirements of section 22905 of title 49.

(ii) Multimodal projects

(I) In general. Except as otherwise provided in this clause, if an eligible project is a multimodal project, the Secretary shall—

(aa) determine the predominant modal component of the project; and

(bb) apply the applicable requirements described in item (aa) of the predominant modal component to the project.

(II) Exceptions

(aa) Passenger or freight rail component. The requirements of section 22905 of title 49 shall apply to any passenger or freight rail component of a project.

(bb) Public transportation component. The requirements of section 5333 of title 49 shall apply to any public transportation component of a project.

(6) Congressional review. Not later than 3 days before providing a grant under this section, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and Committee on Environment and Public Works of the Senate—

(A) a list of all applications determined to be eligible for a grant by the Secretary;

(B) each application proposed to be selected for a grant, including a justification for the selection; and

(C) proposed grant amounts.

(7) Transparency

(A) In general. Not later than 30 days after providing a grant for a project under this section, the Secretary shall provide to all applicants, and publish on the website of the Department of Transportation, the information described in paragraph (6).

(B) Briefing. The Secretary shall provide, on the request of an eligible entity, the opportunity to receive a briefing to explain any reasons the eligible entity was not selected to receive a grant under this section.

(C) Treatment. Assistance provided under subparagraph (B) shall not be considered a guarantee of future selection of an applicable project under the program.

(8) Annual report. The Secretary shall make available on the website of the Department of Transportation at the end of each fiscal year an annual report that lists each project for which a grant has been provided under this section during that fiscal year.

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

(10) Pre-award authority

(A) In general. The Secretary shall provide pre-award authority for eligible pre-award activities to permit expenses to be incurred by a recipient during the period beginning on the date on which the recipient is selected and ending on the date on which the grant agreement is signed.

(B) Eligible pre-award activities. The Secretary shall make publicly available in the notice of funding opportunity the eligible pre-award activities for an award under this section which shall be similar in nature to eligible pre-award activities granted to applicants under section 5309 of title 49.

(c) Rural surface transportation grants

(1) Definitions. In this subsection:

(A) Program. The term program means the program established under paragraph (2)(A).

(B) Covered rural area. The term covered rural area means an area that is outside an urban area with a population of over 50,000.

(2) Establishment

(A) In general. The Secretary shall establish a rural surface transportation grant program to provide grants, on a competitive basis, to eligible entities to improve and expand the surface transportation infrastructure in covered rural areas.

(B) Goals. The goals of the program shall be—

(i) to increase connectivity;

(ii) to improve the safety and reliability of the movement of people and freight; and

(iii) to generate regional economic growth and improve quality of life in covered rural areas.

(3) Eligible entities. The Secretary may make a grant under the program to—

(A) a State;

(B) a regional transportation planning organization;

(C) a unit of local government;

(D) a Tribal government or a consortium of Tribal governments; and

(E) a multijurisdictional group of entities described in subparagraphs (A) through (D).

(4) Eligible projects

(A) In general. Except as provided in subparagraph (B), the Secretary may make a grant under the program only for a project that is—

(i) a highway, bridge, or tunnel project eligible under section 119(d);

(ii) a highway, bridge, or tunnel project eligible under section 133(b);

(iii) a project eligible under section 202(a);

(iv) a highway freight project eligible under section 167(h)(5);

(v) a highway safety improvement project, including a project to improve a high risk rural road (as those terms are defined in section 148(a));

(vi) a project on a publicly-owned highway, road, or bridge that provides or increases access to an agricultural, commercial, energy, water storage or intermodal facility that supports the economy of a covered rural area; or

(vii) a project to develop, establish, or maintain an integrated mobility management system, a transportation demand management system, or on-demand mobility services.

(B) Bundling of eligible projects

(i) In general. An eligible entity may bundle 2 or more similar eligible projects under the program that are—

(I) included as a bundled project in a statewide transportation improvement program under section 135; and

(II) awarded to a single contractor or consultant pursuant to a contract for engineering and design or construction between the contractor and the eligible entity.

(ii) Itemization. Notwithstanding any other provision of law (including regulations), a bundling of eligible projects under this paragraph may be considered to be a single project, including for purposes of section 135.

(5) Project requirements. The Secretary may provide a grant under the program to an eligible project only if the Secretary determines that the project—

(A) will generate regional economic, mobility, or safety benefits;

(B) will be cost effective;

(C) will contribute to the accomplishment of 1 or more of the national goals under section 150;

(D) is based on the results of preliminary engineering; and

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

(6) Additional considerations. In providing grants under the program, the Secretary shall consider the extent to which an eligible project will—

(A) improve the state of good repair of existing transportation facilities;

(B) increase the capacity or connectivity of the surface transportation system and improve mobility for residents of covered rural areas;

(C) address economic development and job creation challenges;

(D) enhance recreational and tourism opportunities by providing access to Federal land, national parks, national forests, national recreation areas, national wildlife refuges, wilderness areas, or State parks;

(E) contribute to geographic diversity among grant recipients;

(F) utilize innovative project delivery approaches or incorporate transportation technologies;

(G) coordinate with projects to address broadband infrastructure needs; or

(H) improve access to emergency care, essential services, healthcare providers, or drug and alcohol treatment and rehabilitation resources.

(I) address disaster preparedness, resilience, or support an evacuation route (as such term is defined in section 176(a));

(J) support the movement of agricultural products through and from covered rural areas, including by improving or rebuilding bridges (including improvements that allow for the removal or increase of a posted weight restriction);

(K) support access to Federal or Tribal lands;

(L) support access to utility infrastructure, including energy infrastructure or water storage facilities; and

(M) improve the seismic safety or structural resilience of transportation infrastructure located in areas of high seismic risk.

(7) Grant amount. Except as provided in paragraph (8)(A), a grant under the program shall be in an amount that is not less than $5,000,000.

(8) Set asides

(A) Small projects. The Secretary shall use not more than 10 percent of the amounts made available for the program for each fiscal year to provide grants for eligible projects in an amount that is less than $5,000,000.

(B) Appalachian Development Highway System. The Secretary shall reserve no more than 15 percent of the amounts made available for the program for each fiscal year for eligible projects that further the completion of designated routes of the Appalachian Development Highway System under section 14501 of title 40.

(C) Rural roadway lane departures. The Secretary shall reserve 15 percent of the amounts made available for the program for each fiscal year to provide grants for eligible projects located in States that have rural roadway fatalities as a result of lane departures that are greater than the average of rural roadway fatalities as a result of lane departures in the United States, based on the latest available data from the Secretary.

(D) Movement of agricultural products from rural areas. The Secretary shall reserve 10 percent of the amounts made available for the program for each fiscal year to provide grants for eligible projects that support the movement of agricultural products from covered rural areas.

(E) Projects in small communities. The Secretary shall reserve 5 percent of the amounts made available for the program for each fiscal year to provide grants for eligible projects in areas with a population of not more than 5,000.

(F) Excess funding. In any fiscal year in which qualified applications for grants under this subsection do not allow for the amounts reserved under subparagraphs (A) through (E) to be fully utilized, the Secretary shall use the unutilized amounts to make other grants under the program.

(d) Urban surface transportation grants

(1) Definitions. In this subsection:

(A) Program. The term program means the program established under paragraph (2)(A).

(B) Covered urban area. The term covered urban area means an area with a population of not less than 50,000.

(2) Establishment

(A) In general. The Secretary shall establish an urban surface transportation grant program to provide grants, on a competitive basis, to eligible entities to improve and expand the surface transportation infrastructure in urban areas.

(B) Goals. The goals of the program shall be—

(i) to increase connectivity;

(ii) to improve the safety and reliability of the movement of people and freight; and

(iii) to generate regional economic growth and improve quality of life in urban areas.

(3) Eligible entities. The Secretary may make a grant under the program to—

(A) a State;

(B) the District of Columbia;

(C) any territory or possession of the United States;

(D) a unit of local government;

(E) a public agency or publicly chartered authority established by 1 or more States;

(F) a special purpose district or public authority with a transportation function or a lessee of a Federal surface transportation hub, including a port authority;

(G) a transit agency;

(H) a Tribal government or a consortium of Tribal governments; and

(I) a multi-State or multijurisdictional group of entities described in any of subparagraphs (A) through (H).

(4) Eligible projects

(A) In general. Except as provided in subparagraph (B), the Secretary may make a grant under the program only for a project that is—

(i) a surface transportation project eligible under this title;

(ii) a public transportation project eligible for assistance under chapter 53 of title 49;

(iii) a passenger rail or freight rail transportation project eligible for assistance under title 49;

(iv) a project eligible under section 6702 and 6703 of title 49;

(v) a project eligible for a grant program established under subtitle E of title I of the Surface Transportation Reauthorization Act of 2021 (135 Stat. 578 et. seq.); or

(vi) a project to develop, establish, or maintain an integrated mobility management system, a transportation demand management system, or on-demand mobility services.

(B) Bundling of eligible projects

(i) In general. An eligible entity may bundle 2 or more similar eligible projects under the program that are—

(I) included as a bundled project in a statewide transportation improvement program under section 135; and

(II) awarded to a single contractor or consultant pursuant to a contract for engineering and design or construction between the contractor and the eligible entity.

(ii) Itemization. Notwithstanding any other provision of law (including regulations), a bundling of eligible projects under this paragraph may be considered to be a single project, including for purposes of section 135.

(5) Project requirements. The Secretary may provide a grant under the program to an eligible project only if the Secretary determines that the project—

(A) will generate regional economic, mobility, or safety benefits;

(B) will be cost effective;

(C) will contribute to the accomplishment of 1 or more of the national goals under section 150;

(D) is based on the results of preliminary engineering; and

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

(6) Additional considerations. In providing grants under the program, the Secretary shall consider the extent to which an eligible project will—

(A) improve the state of good repair of existing transportation facilities;

(B) increase surface transportation system or local connectivity and improve mobility for residents of urban areas;

(C) address economic development and job creation challenges;

(D) contribute to geographic diversity among grant recipients;

(E) improve safety, including the anticipated reduction of accidents and related costs;

(F) include resilience benefits against natural disasters, including the ability to withstand disruptions from a seismic event;

(G) incorporate environmental benefits;

(H) provide safety and mobility benefits to multiple users of the project;

(I) utilize innovative project delivery approaches or incorporate transportation technologies; or

(J) improve access to emergency care, essential services, healthcare providers, or drug and alcohol treatment and rehabilitation resources, or a facility or organization that provides community support services.

(7) Grant amount. Except as provided in paragraph (8)(A), a grant under the program shall be in an amount that is not less than $5,000,000.

(8) Set asides

(A) Small projects. The Secretary shall use not more than 10 percent of the amounts made available for the program for each fiscal year to provide grants for eligible projects in an amount that is less than $5,000,000.

(B) Areas of persistent poverty. Of the total amount made available to carry out the program for each fiscal year, not less than 1 percent shall be awarded for projects in areas of persistent poverty (as defined in section 6702(a) of title 49).

(e) Local and regional surface transportation grants

(1) Definitions. In this subsection:

(A) Eligible entity. The term eligible entity means—

(i) a State;

(ii) the District of Columbia;

(iii) any territory or possession of the United States;

(iv) a unit of local government;

(v) a public agency or publicly chartered authority established by 1 or more States;

(vi) a special purpose district or public authority with a transportation function or a lessee of a Federal surface transportation hub, including a port authority;

(vii) a federally recognized Indian Tribe or a consortium of such Indian Tribes;

(viii) a transit agency; and

(ix) a multi-State or multijurisdictional group of entities described in any of clauses (i) through (viii).

(B) Eligible project. The term eligible project means—

(i) a highway or bridge project eligible for assistance under this title, including—

(I) improvement of a high priority corridor to meet the design standards and specifications of the Interstate System and connect to the existing Interstate System; and

(II) infrastructure improvements to address freight bottlenecks;

(ii) a public transportation project eligible for assistance under chapter 53 of title 49;

(iii) a passenger rail or freight rail transportation project eligible for assistance under title 49;

(iv) a port infrastructure investment, including—

(I) inland port infrastructure; and

(II) a land port-of-entry;

(v) the surface transportation components of an airport project eligible for assistance under part B of subtitle VII of title 49;

(vi) a project for investment in a surface transportation facility located on Tribal land, the title or maintenance responsibility of which is vested in the Federal Government;

(vii) a project to replace or rehabilitate a culvert or prevent stormwater runoff that is eligible under section 176(d) and will advance the goal of the program established under this subsection; and

(viii) any other surface transportation infrastructure project that the Secretary considers to be necessary to advance the goal of the program.

(C) Program. The term program means the program established under paragraph (2)(A).

(D) Specified rural area. The term specified rural area means an area that is located outside of a specified urban area.

(E) Specified urban area. The term specified urban area means an area with a population of more than 200,000 residents, based on the most recent decennial census.

(2) Establishment

(A) In general. The Secretary shall establish and carry out a local and regional surface transportation grant program to provide for capital investments in surface transportation infrastructure on a competitive basis.

(B) Goal. The goal of the program shall be to fund eligible projects that will have a significant local or regional impact and improve surface transportation infrastructure.

(3) Grants

(A) Amount. Except as otherwise provided in this subsection, each grant made under this subsection shall be in an amount equal to—

(i) not less than $5,000,000 for a specified urban area;

(ii) not less than $1,000,000 for a specified rural area; and

(iii) not more than $25,000,000.

(B) Limitation. Not more than 15 percent of the funds made available to carry out this subsection for a fiscal year may be awarded to eligible projects in a single State during such fiscal year.

(4) Selection of eligible projects

(A) Notice of funding opportunity. Not later than 60 days after the date on which funds are made available to carry out this subsection, the Secretary shall publish a notice of funding opportunity for the funds.

(B) Primary selection criteria. In awarding grants under this subsection, the Secretary shall evaluate the extent to which a project—

(i) improves safety;

(ii) improves environmental sustainability;

(iii) improves quality of life;

(iv) increases economic competitiveness and opportunity, including tourism opportunities;

(v) contributes to a state of good repair; and

(vi) improves mobility and community connectivity.

(C) Additional selection considerations. In selecting projects to receive grants under the program, the Secretary shall take into consideration the extent to which—

(i) the eligible entity collaborated with other public and private entities;

(ii) the project adopts innovative technologies or techniques, including—

(I) innovative technology;

(II) innovative project delivery techniques; and

(III) innovative project financing;

(iii) construction of the project is reasonably expected to begin not later than 18 months after the date on which the project is selected;

(iv) the eligible entity includes documentation certifying such entity has notified a State transportation department if the project is located on a State-owned or State-managed facility; and

(v) the project is cost effective.

(D) Limitation. In awarding grants under the program, the Secretary shall select grant recipients based only on the selection criteria described in subparagraphs (C) and (D).

(E) Transparency

(i) In general. The Secretary, shall evaluate, through a methodology that is discernible and transparent to the public, the means by which each application submitted under paragraph (4) addresses the criteria under subparagraphs (C) or (D) of such paragraph or otherwise established by the Secretary.

(ii) Publication. The methodology under clause (i) shall be published by the Secretary as part of the notice of funding opportunity under the program.

(F) Awards. Not later than 270 days after the date on which amounts are made available to provide grants under the program for a fiscal year, the Secretary shall announce the selection by the Secretary of eligible projects to receive the grants in accordance with this section.

(5) Treatment of other Federal funds. Amounts provided under any of the following programs shall be considered to be a part of the non-Federal share for a project under this subsection:

(A) The tribal transportation program under section 202.

(B) The Federal lands transportation program under section 203.

(C) The TIFIA program (as defined in section 601(a)).

(D) The Railroad Rehabilitation and Improvement Financing Program under chapter 224 of title 49.

(6) Other considerations

(A) In general. Of the total amount made available to carry out the program under this subsection for each fiscal year—

(i) not more than 50 percent shall be allocated for eligible projects located in specified rural areas; and

(ii) not more than 50 percent shall be allocated for eligible projects located in specified urban areas.

(B) Projects for regional hubs. Of the total amount made available for eligible projects under subparagraph (A)(i) for each fiscal year, the Secretary shall reserve 10 percent for eligible projects located in communities with a population between 50,000 and 100,000.

(C) Areas of persistent poverty. Of the total amount made available to carry out the program for each fiscal year, not less than 1 percent shall be awarded for projects in areas of persistent poverty (as defined in section 6702(a) of title 49).

(D) Multimodal and geographical considerations. In selecting projects to receive grants under the program, the Secretary shall take into consideration geographical and modal diversity.

(7) Project planning

(A) In general. Of the amounts made available to carry out the program for each fiscal year, not less than 5 percent shall be made available for the planning, preparation, or design of eligible projects.

(B) Nonapplicability of certain limitations. Clauses (i) and (ii) of paragraph (3)(A) shall not apply with respect to amounts made available for planning, preparation, or design under subparagraph (A).

(8) Transfer of authority. Of the amounts made available to carry out the program for each fiscal year, the Administrator may transfer not more than 2 percent for a fiscal year to the Administrator of any of the Federal Transit Administration, the Federal Railroad Administration, or the Maritime Administration to award and oversee grants and credit assistance in accordance with this subsection.

(9) Credit program costs

(A) In general. Subject to subparagraph (B), at the request of an eligible entity, the Secretary may use a grant provided to the eligible entity under the program to pay the subsidy or credit risk premium, and the administrative costs, of an eligible project that is eligible for Federal credit assistance under—

(i) chapter 6; or

(ii) chapter 224 of title 49.

(B) Limitation. Not more than 20 percent of the funds made available to carry out the program for a fiscal year may be used to carry out subparagraph (A).

(10) Reports. Not later than 1 year after the date on which the initial grants are awarded for eligible projects under the program, the Comptroller General of the United States shall—

(A) review the administration of the program, including—

(i) the solicitation process; and

(ii) the selection process, including—

(I) the adequacy and fairness of the process; and

(II) the selection criteria; and

(B) submit to the Committee on Transportation and Infrastructure of the House of Representatives and Committee on Environment and Public Works of the Senate a report describing the findings of the review under subparagraph (A), including recommendations for improving the administration of the program, if any.