The U.S. Department of Transportation (DOT) released a $1.5 billion Notice of Funding Opportunity (NOFO) earlier this week providing support for transportation projects with significant local or regional impact.
The Better Utilizing Investments to Leverage Development (BUILD) grant program is funded through the Infrastructure Investment and Jobs Act and supports improvements that strengthen mobility, modernize aging infrastructure and enhance multimodal connections. Applications are due Feb. 24 by 5 p.m. ET.
The FY 2026 BUILD grant includes clear award limits and distribution requirements. DOT will provide up to $25 million for individual awards and requires a minimum request of $5 million for urban applicants and $1 million for rural applicants. Planning grants have no minimum. Congress has directed DOT to reserve at least 5 percent of total funding for planning and at least 1 percent for Areas of Persistent Poverty or Historically Disadvantaged Communities. No state may receive more than 15 percent of available funds, and DOT anticipates a roughly equal split between rural and urban projects. DOT will fund up to 80 percent of urban projects, while rural projects and those in designated equity areas may receive up to 100 percent of federal funding.
DOT will evaluate applications based on defined criteria that emphasize safety, state of good repair, economic competitiveness and improved mobility. The agency also reviews environmental benefits and the extent to which a project improves community connectivity or resilience. Projects that demonstrate readiness, including progress on permitting, a realistic schedule and a feasible financial plan, score more competitively. Strong coordination among partners and clear roles for regional or private-sector collaborators can further strengthen an application.
The program is open to a broad set of public entities, including states, territories, local governments, Tribal governments, transit agencies, port authorities and metropolitan planning organizations. Multijurisdictional applicants must name a lead sponsor with fiscal responsibility. Private firms, nonprofits, and individuals cannot apply directly but may participate through partnerships or contracts with eligible sponsors.
BUILD will support a wide range of capital projects, including highway and bridge upgrades, transit expansions, port modernization, freight and passenger rail improvements and intermodal facility development. Eligible activities for funding also include stormwater and culvert upgrades that improve resilience and aquatic habitat. Planning grants may support feasibility studies, corridor plans and environmental documentation.
Applications for the BUILD grant must be submitted online by Feb 24. Each applicant must also be registered on SAM.gov before applying.
Photo by Aleksejs Bergmanis from Pexels
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