Funding for states to develop highway and transit infrastructure, intelligent transportation systems, environmental and safety measures, recreational trails, and resilience enhancements.

Supports nature-based solutions

Encourages public-private partnerships

Application cycle: Varies by state, but generally state transportation agency NOFOs are released in January, with applications due in the first or second quarter of the fiscal year. Once the state agency reviews applications and determines recommendations, they draft and approve a final Transportation Improvement Program (TIP). Award letters would be sent to project sponsors shortly after, in late summer or early fall.

Summary: This program provides flexible funding through state transportation agencies to preserve and improve the conditions and performance on any federal-aid highway, bridge and tunnel projects on any public road, pedestrian and bicycle infrastructure, and transit capital projects, including intercity bus terminals. The program also includes a set-aside for eligible bridge projects not on federal-aid highways, and low water crossings on public roads other than federal-aid highways.

Eligible applicants: State and local Government agencies, tribal governments, and nonprofit entities.

Eligible activities: This program funds a variety of constructional activities, operational improvements, recreational improvements, and other activities related to eligible highways and facilities, including:

• Resilience and adaptation- related projects such as vulnerability assessments and evaluating climate change impacts as part of lifecycle cost assessments and asset management planning
• Replacing low water crossings with bridges 
• Inspection, evaluation and protection for bridges and low water crossings
• Natural infrastructure
• Environmental mitigation efforts (as under National Highway Performance Program).
• Filter — Public Private Partnerships: A State may use STBG funds to design, implement, and oversee public-private partnerships (P3) eligible to receive Federal highway or transit funding, and to pay a stipend to unsuccessful P3 bidders 

Funding: Total funding from FY2022–2026 is approximately $72 billion, averaging $14–15 billion annually. FY2024 state allocations can be found here.

Cost share: 80% federal / 20% nonfederal.

• Filter — Needs-Based Cost Sharing: The federal share for projects on the Interstate System is 90%, unless the project adds lanes that are not high-occupancy-vehicle or auxiliary lanes. An upward sliding scale adjustment is also available to States having public lands. Certain types of improvements, predominantly safety improvements, may have a federal share of 100%.

Application process: 

• If an eligible entity believes they have a project that may be eligible under the STBG program, they should contact their respective State Department of Transportation (DOT) or local Metropolitan Planning Organizations (MPO) for additional information on projects and project funding.
• Filter — Federal Fund Braiding: States may transfer 50% of their technical assistance funds from their STBG funds to provide technical assistance for PROTECT grants.