Federal grant program changes affect infrastructure projects

The U.S. Department of Transportation is renaming “FASTLANE” grants “INFRA” grants, and the changes don’t end there.

Late last month the DOT announced major alterations to the FASTLANE infrastructure grant program.

It was established by the Fixing America’s Surface Transportation Act, which raises $305 billion over five years primarily through a gas tax rate increase. Under the new INFRA (Infrastructure for Rebuilding America) program, priority will go to projects employing “innovative” approaches to stretching federal dollars. The president is looking to encourage more parties to put “skin in the game,” according to a DOT fact sheet.

The changes are intended to support alternative funding methods, innovation in contract delivery and easing of regulations and permitting red-tape. Additionally, rural and “less-wealthy” areas will be given priority over urban ones. Ninety percent of available INFRA grants will be reserved for projects of $25 million or more, with the remainder going toward smaller projects.

But Democrats who spent years passing a federal gas tax rate increase in 2015 are not happy with the changes.

Rep. Peter DeFazio, D-Oregon, ranking member of the House Transportation and Infrastructure Committee, said the president’s vision of devolving federal responsibility for transportation infrastructure could mean a transfer of U.S. assets to Wall Street and foreign investors.

“These changes distort the intent of Congress, which enacted these grants to fund major, nationally significant infrastructure projects,” DeFazio wrote to the DJC. “Instead, the new INFRA grants will prioritize projects that are able to rely on private financing and will force states to do more with less money. The American people will be the ones left holding the bag – and paying the toll – once these projects are funded.”

The changes were announced late last month, and published in the National Register on July 5.

“It doesn’t change anything for us,” said Vince Trimboli, communication manager for the Idaho Department of Transportation. “We’ll look at the new grant program and decide if there are any opportunities for ITD to apply for project funding.”

ITD received $5.1 million in FASTLANE Grant funds toward an $8.5 million project to improve US 95 from I-90 to SH-53, Trimboli said. Project construction is due to start in 2019.

Applicants may resubmit previous FASTLANE applications, but should explain how projects address the new INFRA criteria, according to DOT spokesman Doug Hecox.