September 26, 2022

Bipartisan Infrastructure Law: Looking Ahead at Fiscal Year 2023 and Beyond

Loan Programs Summary

When President Biden signed the Infrastructure Investment and Jobs Act, also referred to as the Bipartisan Infrastructure Law (BIL), into law in November of 2021, the law could not be fully implemented due to government spending being constrained at fiscal year 2021 levels. The following March, President Biden signed into law a $1.5 trillion omnibus package passed by Congress which fully funded the federal government through fiscal year 2022. The passage of the omnibus package also fully funded BIL through the next five fiscal years for which the law authorizes funding. This includes the law’s increased funding for legacy programs as well as its new ones. The United States Department of Transportation (DOT) received $102.9 billion in funds under the package. This amounts to a $16.2 billion increase from fiscal year 2021. The package also provided $57.5 billion for the Federal Highway Administration’s (FHWA) formula programs, which were reauthorized in the infrastructure law, as well as $16.3 billion for the Federal Transit Administration (FTA), a $3.3 billion increase. Amtrak received $2.3 billion. 

BIL Grant Programs Funded by the Omnibus Package

Below are some examples of new programs created by BIL that are now fully funded by the omnibus package. All funding amounts listed below are for the next five years.

  • $12.5 billion Bridge Investment Program, a competitive discretionary grant program that focuses on repairing existing bridges to reduce the overall number of bridges throughout the country that are in poor condition or which are at risk of falling into poor condition.
  • $8.7 billion PROTECT Act Grant Program, a formular and grant program to bolster surface transportation resiliency against natural hazards such as climate change, rising sea levels, flooding, extreme weather events and other natural disasters.
  • $6.4 billion Carbon Reduction Program, which funds a wide range of projects designed to reduce carbon dioxide emissions from on-road highway sources. These include installing infrastructure to support the electrification of freight or personal vehicles, constructing Bus Rapid Transit corridors, and facilitating micro-mobility and biking. States are required to work with Metropolitan Planning Organizations to identify projects and strategies to reduce carbon emissions in their states.
  • $5 billion MEGA Grant Program, known statutorily as the National Infrastructure Project Assistance Program. This program will support large, complex infrastructure projects that are too difficult to fund through other means. These include intermodal freight projects, rail-highway grade separation or elimination projects and intercity passenger rail projects.
  • $5 billion Safe Streets and Roads for All Grant Program, a discretionary program that funds regional, local and tribal initiatives to prevent serious injuries and deaths on America’s roadways.
  • $2.5 billion EV Charging and Fueling Competitive Grant Program, a competitive grant program to deploy electric vehicle charging infrastructure along designated alternative fuel corridors. At least 50%of this funding must be used for a community grant program where priority is given to projects that expand access to EV charging and alternative fueling infrastructure within rural areas, low- and moderate-income neighborhoods and communities with a low ratio of private parking spaces.
  • $2 billion Rural Surface Transportation Grant Program, a competitive discretionary grant program to improve and expand surface transportation infrastructure in rural areas.

Legacy Programs Funded by the Omnibus Package

Below are some of the legacy programs that have received their full additional funding amounts authorized by BIL from the omnibus package. All funding amounts listed below are for the next five years.

*Faegre Drinker Policy Assistant Andrew Bryant contributed to this article.

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