USDOT commits $3.2B to infrastructure

May 14, 2025

The federal government is taking a department-wide approach to funding infrastructure projects throughout the nation.

The U.S. Department of Transportation (USDOT) announced more than $3.2 billion in funding for 180 infrastructure projects, seeking to push out existing obligations and move projects forward. Including grants from eight internal offices and administrations, USDOT’s announcement will support a wide range of infrastructure, transportation, airport and bridge projects.

Many of USDOT’s grant obligations will be delivered to applicants of existing federal programs funded by the Inflation Reduction Act or the Infrastructure Investment and Jobs Act. The funding is designed to advance a backlog of more than 3,200 infrastructure projects around the country.

The largest grant in this round, $550 million, will support the I-10 Mobile River Bridge and Bayway Multimodal Project in Baldwin and Mobile counties, Alabama. Administered by the Federal Highway Administration (FHWA), the funding will break ground on the highly anticipated project, which seeks to upgrade existing infrastructure, bypass two tunnels and replace the bridge and bayway. The full development and reconstruction of this bridge and bayway is anticipated to cost more than $2.5 billion, according to 2022 project documents.

The remaining grants will be delivered through eight of USDOT’s operating offices and administrations, such as the FHWA.

Notably, USDOT will obligate over $1.4 billion to the FHWA for bridge and scenic byways projects, including the aforementioned I-10 bridge and byway initiative. The funding will primarily support the FHWA’s Bridge Investment Program, which advances local bridge upgrade, rehabilitation or replacement initiatives.

The Federal Aviation Administration will receive nearly $280 million to support Airport Improvement Program and Airport Terminal Program projects. The latter is slated for $277.1 million to enhance and upgrade the nation’s airport terminals and structures.

Railroads and rail infrastructure will also be a priority under this federal grant announcement. USDOT is announcing $284.2 million in grants for the Federal Railroad

Administration, including $221 million for six Consolidated Rail Infrastructure and Safety Improvements projects and $30 million for one Federal-State Partnership for Intercity Passenger Rail project.

USDOT will grant nearly $500 million to the Federal Transit Administration (FTA) for the purchase of low or no emissions buses and enhancement of tribal transit services. The largest FTA grant, $38.9 million, will support the Connecticut Department of Transportation’s CTfastrak Battery Electric Bus Deployment Project, which will convert the state’s CTfastrak bus fleet to automated battery electric alternatives.

The federal government will advance some port and port infrastructure projects in this latest round of transportation funding. Directing $108 million to the Maritime Administration, DOT will push out two existing grant obligations from the Port Infrastructure Development Program (PIDP) and one grant from the Transportation Demonstration Program (TDP).

Maritime’s PIDP initiative delivers grants and funding to municipalities and port authorities for a wide range of port improvements. This grant announcement includes $54.2 million for a terminal expansion at the Port of Tacoma in Washington and nearly $16 million to expand Velasco Terminal at Port Freeport in Texas. The one TDP grant, $38 million, will support Alabama State Port Authority’s Intermodal & Multimodal Freight Efficiency Project in Mobile.

The final funding obligations will be directed through USDOT’s Office of the Secretary for Transportation Policy (OST-P), Office of the Secretary for Research and Technology (OST-R) and the Office of the Secretary for Aviation and International Affairs (OST-X).

USDOT’s OST-P is responsible for several vital federal infrastructure funding programs, especially for large and otherwise complex projects, such as the Nationally Significant Multimodal Freight & Highway Projects (INFRA) program and the Rural Surface Transportation Grant Program (Rural). DOT is allocating $451 million to 11 combined INFRA and Rural projects.

Additionally, the grant announcement features $60 million for four Better Utilizing Investments to Leverage Development projects, $14.6 million for six Safe Streets and Roads for All projects and $9.9 million for a National Infrastructure Project Assistance program project.

DOT will earmark $90.6 million for 27 projects in the Strengthening Mobility and Revolutionizing Transportation (SMART) program, an OST-R-administered initiative that funds innovative community technologies and advanced integrated community systems.

OST-X will also receive $12 million to support the Small Community Air Service Development Program.

As the next fiscal year kicks off on July 1, USDOT will soon announce additional funding and grant opportunities.


Image by schliff from Pixabay

Brady Pieper

written for various daily and weekly publications in Texas and Colorado, specializing in the government market and in-depth bill coverage. Graduating from the University of Texas at Austin with a degree in Journalism, Pieper has been at the forefront of public and private sector communications and government initiatives. Pieper recently joined the Government Market News team as a content writer and anticipates continuing SPI’s long-standing tradition of delivering timely, accurate and significant government news to our readers and partners.

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