The Department of Transportation is rolling out billions of dollars in federal grants as the agency heads into an uncharted future and a change in leadership.
"Though the Biden-Harris administration is drawing to a close, today we're proud to announce one more major round of grants to keep that work going and further modernize our roads and rails, build out a national EV charger network, and ensure that transportation in the 21st century lives up to its basic promise and connects more communities across our nation," said U.S. Transportation Secretary Pete Buttigieg.
Federal infrastructure grants are typically paid as reimbursements or as matching funds for projects often financed through bond issuance.
According to the DOT, as of last Friday, the agency has granted nearly $5 billion in grants for more than 560 projects in all 50 states, Washington D.C., and the U.S. territories through the Bipartisan Infrastructure Law.
Several priority programs were stood up to guide the funding to modernizing railroad crossings, airports, rural surface transportation, intercity passenger rail and building out a network of charging stations for electric vehicles.
The latest round of announcements rolls in $1.1 billion dedicated to rail grants designed to reduce train vehicle collisions and blocked railroad crossings.
The Rebuilding American Infrastructure with Sustainability and Equity program is awarding $1.32 billion for 109 programs across the country to build and improve roads, bike lanes, and sidewalks.
The $1.2 trillion BIL was signed into law in 202 1, with the DOT
According to the agency, as of Dec. 15, 2024, the Federal Highway Association accounts for the largest percentage of BIL funding with 48.3%.
The Federal Aviation Administration currently has the lowest at 17.3%.
The law is set to sunset in September 2026 with the Trump administration overseeing the program for its final two years.
According to a
President-elect Trump has selected Sean Duffy to take over for Buttigieg pending the outcome of his confirmation hearing scheduled for this week.
Duffy's resume includes a stint as reality TV-star followed by serving as district attorney for Ashland County, Wisconsin, and eight years in the U.S. House of Representatives.
Most recently, he worked as a host on Fox Business before resigning in November 2024 following his nomination.
So far, the Duffy nomination has received positive feedback from the transportation industry and Rep. Rick Larsen, the ranking member of the House Transportation and Infrastructure Committee.
Larsen has been calling for an BIL reauthorization since
Last week, S&P Global Ratings issued two reports on the transportation sector. S&P is overall bullish saying, "Activity in the U.S. transportation sector will continue to normalize in 2025, with growth rates for most modes of transportation slowing to levels comparable with pre-pandemic averages, following more rapid growth in 2024."
The second report focuses on not-for-profit transportation which includes toll roads, airports, ports, mass transit systems, and parking operations. The outlook is stable with a possibility of headwinds.
"The IIJA/BIL created and reauthorized some programs without the accompanying appropriations funding. Zero funding, reduced funding, or rescission of funding for these programs could occur during the executive budgeting or congressional appropriations process," S&P wrote. "This could result in outcomes that more closely align with policy objectives of the new administration and Congress, including cutting spending or shifting the focus away from the current emphasis on climate and carbon emission-reduction goals as well as rail projects."
