Capital Investment Grants Program
New Starts, Small Starts and Core Capacity Improvements
On May 28, 2021, U.S. Transportation Secretary Pete Buttigieg announced $2.5 billion as recommended in President Biden’s Fiscal Year 2022 budget to advance the construction or completion of 25 rail, bus rapid transit and streetcar projects in 12 states, as well as other projects that may become ready for funding in FY 2022.
FTA’s FY2022 Annual Report on Funding Recommendations includes $1.56 billion for 17 CIG projects with existing grant agreements and $461.1 million for 8 new CIG projects estimated to be ready for grants in FY 2022. An additional $427.2 million is included for other CIG and Expedited Project Delivery (EPD) Pilot Program projects that may become ready for funding during FY 2022.
On February 16, 2021, FTA rescinded the “Dear Colleague” letter on the Capital Investment Grants (CIG) program issued by FTA on June 29, 2018. The Biden Administration will rely on the CIG statutory framework to ensure projects awarded funding have met the requirements of federal public transportation law, the Major Capital Investment Projects Final Rule, and the CIG Final Interim Policy Guidance.
In September 2020, FTA announced a final rule amending FTA’s Project Management Oversight of transit capital investments, which redefines a “major capital project” as one with a budget of $300 million or more and with a federal investment of at least $100 million, allowing FTA oversight to be tailored to modern costs and risks for projects.
This FTA discretionary grant program funds transit capital investments, including heavy rail, commuter rail, light rail, streetcars, and bus rapid transit. Federal transit law requires transit agencies seeking CIG funding to complete a series of steps over several years. For New Starts and Core Capacity projects, the law requires completion of two phases in advance of receipt of a construction grant agreement – Project Development and Engineering. For Small Starts projects, the law requires completion of one phase in advance of receipt of a construction grant agreement – Project Development. The law also requires projects to be rated by FTA at various points in the process according to statutory criteria evaluating project justification and local financial commitment. For a complete discussion of the CIG process and the evaluation criteria, please see FTA’s Policy Guidance.
Sponsors of capital investment grant projects should also become familiar with the transportation planning and environmental review process requirements that apply to projects funded by FTA. Find information on the transportation planning process and the environmental review process