Industry groups laud funding for the Infrastructure for Rebuilding America grant program

Earlier this month, more than $4.9 billion in funding for from the White House’s “Investing in America” initiative was announced by President Biden and Transportation Secretary Buttigieg for 37 projects through two discretionary grant programs, the National Infrastructure Project Assistance (Mega) grant program, which awarded $2.0 billion in grants, and the Infrastructure for Rebuilding America (INFRA) grant program, which awarded $2.9 billion in grants. 

As defined by USDOT, the National Infrastructure Project Assistance (Mega) funds major projects that are too large or complex for traditional funding programs and provide grants on a competitive basis to support multijurisdictional or regional projects of significance that may also cut across multiple modes of transportation. Eligible projects could include highway, bridge, freight, port, passenger rail, and public transportation projects of national and regional significance. DOT will award 50% of funding to projects greater than $500 million in cost, and 50% to projects greater than $100 million but less than $500 million in cost. The Mega grant program was established in 2021through the Bipartisan Infrastructure Law, with $5 billion in grants over a subsequent five-year period, with this round of grants accounting for around $2 billion.

And the INFRA grant program projects are focused on improving safety, generating economic benefits, reducing congestion, enhancing resiliency, and holding the greatest promise to eliminate supply chain bottlenecks and improve critical freight movements. The Bipartisan Infrastructure Law provides approximately $8 billion for INFRA over five years.

The White House and DOT said that this round of funding is being allocated for 11 Mega projects, focused on generating national and regional economic mobility and safety benefits, and the INFRA grants will be allocated for 28 projects, focused on improving the safety, efficiency, and reliability of the movement of freight and people in and across rural and urban areas, with more than half of the awarded INFRA grants going towards rural communities.

The White House and DOT added that Two projects received awards from both programs, following through on the Department’s commitment to invest in non-traditional, multimodal projects that have been neglected because of complications around how to fund them.  

“With this announcement, we are advancing projects so large, complex, and ambitious that they could not get funded under the infrastructure programs that existed prior to the Biden administration,” said U.S. Transportation Secretary Pete Buttigieg in a statement. “Our INFRA and Mega programs are helping build the cathedrals of American infrastructure: truly transformative projects that will change entire regions and our entire country for the better.”

These grants were warmly received by various industry organizations.

The Intermodal Association of North America (IANA) said that four of its members’ projects were the recipients of more than $728 million in this round of funding, including: America’s Green Gateway: Pier B Rail Program Buildout, Long Beach, California; St. Lucie Railroad Bridge Replacement Program, City of Stuart Florida; East River Berth Replacement Program Project, Garden City, Georgia; and Louisiana International Terminal Project, St. Bernard Parish, Louisiana; and Louisiana International Terminal Project, St. Bernard Parish, Louisiana.

“Every American relies upon and benefits from a safe and effective intermodal freight network,” said IANA President and CEO Joni Casey. “We applaud Congress for allocating these funds through the BIL and the Administration for awarding projects that will support and spur economic growth.”

The Coalition for America’s Gateways and Trade Corridors (CAGTC) heralded the grants, stating that its members received more than 53% of the awarded funding in the Mega program, for a collective $101.9 billion in grant funding, coupled with another $513.5 million in INFRA program grants.

CAGTC said that establishing a competitive funding program for largescale freight projects has been a long-time priority, adding that it worked with lawmakers to develop and support both the INFRA and Mega programs.

Among the award recipients are several projects sponsored by or supported by members of CAGTC, including:

• $283.37 million for the Port of Long Beach’s Pier B On-Dock Rail Support Facility (Mega)
• $73.77 million for the Port of New Orleans’ Louisiana International Terminal Project (Mega)
• $226.22 million for the Port of New Orleans’ Louisiana International Terminal Project (INFRA)
• $130.5 million for the City of Stuart, Florida’s St. Lucie River Railroad Bridge Replacement Project (Mega)
• $600 million for the Interstate Bridge Replacement (IBR) Program’s I-5 Bridge Replacement Project – the largest individual grant awarded among this year’s Mega recipients (Mega)
• $180 million for the Florida Department of Transportation’s I-4 Truck Parking Facilities Project (INFRA)
• $95 million for the Arizona Department of Transportation's Gila River Indian Community I-10 Project (INFRA)
• $12.28 million for the Washington State Department of Transportation and California Department of Transportation’s I-5 Truck Parking Information Management System Project (INFRA)

“According to USDOT, U.S. freight activity will grow by 50 percent in tonnage between 2020 and 2050. Investments made through the Mega and INFRA programs will be critical for preparing the supply chain to meet these growing demands and securing the country’s global competitiveness moving into the future,” said CAGTC Executive Director Elaine Nessle. “We congratulate our members who received awards and commend USDOT for recognizing the importance of freight projects through its award decisions.”

The American Association of Port Authorities (AAPA) said its members accounted for more than $681 million, of 23%, of INFRA funding, well above the typical 10% in INFRA funding it has received in past rounds. AAPA added its members took in more than $357 million in Mega grant funding, bringing the cumulative total to more than $1 billion in port infrastructure grants and another $1.6 billion towards bridge projects directly benefitting ports.

“This represents a historic investment from programs that ports have not typically been so competitive in,” said AAPA. “This announcement reflects that hard work and relentless advocacy of the entire industry.

The following INFRA awards will go directly to port projects:

• $427 million to the Port of Humboldt Bay, CA for an offshore wind heavy lift marine terminal;
• $15 million to Georgia Ports Authority to replace two berths;
• $226 million to the Port of New Orleans to construct the new Louisiana International Container Terminal;
• $13 million to PhilaPort to build a new bridge connector at the Packer Avenue Marine Terminal; and for Mega projects; 
• $283 million to the Ports of Long Beach and Los Angeles to build out on-dock rail support yards; and
• a supplemental $74 million for the Louisiana International Terminal