This new program, established by the Inflation Reduction Act, provides grants to help reconnect neighborhoods divided by infrastructure through locally tailored projects and additionally aims to mitigate or remediate negative impacts on the human and natural environment.

Eligible Uses

Competitive grants for removing, replacing, or retrofitting highways and freeways to improve connectivity in communities and for planning and capacity building to increase community involvement in transportation planning and related activities to:

  • Improve walkability, safety, and affordable transportation access through projects that are context-sensitive.
  • To mitigate or remediate negative impacts on the human or natural environment resulting from a facility in a disadvantaged or underserved community, including through natural infrastructure to reduce surface transportation-related greenhouse gas emissions and other air pollution; or manage stormwater run-off using natural infrastructure.
  • Planning and capacity building activities in disadvantaged or underserved communities

Eligible Recipients

  1. A state or territory of the United States; 
  2. A unit of local government; 
  3. A political subdivision of a State;
  4. A Tribal government; 
  5. A special purpose district or public authority with a transportation function; 
  6. A Metropolitan Planning Organization; or
  7. A nonprofit organization or institution of higher education that has entered into a partnership with an eligible entity (#1-6) and is applying for a grant for planning and capacity building activities in disadvantaged or underserved communities. 

Approx Annual Funding Amount

Roughly $3 billion over 5 years, including $135 million for Community Planning Grants, up to $2.57 billion for Capital Construction Funds, and up to $450 million for Regional Partnership Challenge Grants.

Cost Share Requirements

An 80% federal share is provided. 100% federal share is provided for disadvantaged or underserved communities.

Application Cycle

The first NOFO for this program was released in July with applications due by the end of September.


Other Info

Up to $1.262 billion in funding is set aside for projects in economically disadvantaged communities. Under this program, an economically disadvantaged community is one that:

  • is economically disadvantaged, underserved, or located in an area of persistent poverty;
  • has entered or will enter into a community benefits agreement with representatives of the community;
  • has an anti-displacement policy, a community land trust, or a community advisory board in effect; 
  • or has demonstrated a plan for employing local residents in the area impacted by the activity or project proposed under the program.