CIG is largest federal discretionary grant program for transit capital investments, including heavy rail, commuter rail, light rail, streetcars, and bus rapid transit

WASHINGTON, D.C. – Federal Transit Administration (FTA) Administrator Marc Molinaro today announced the agency finalized guidance for its Capital Investment Grants (CIG) program, which included eliminating complex calculations for a ‘social cost of carbon’ criteria forced on project sponsors by the last administration. Under Transportation Secretary Sean P. Duffy, this administration is restoring criteria that provides clarity, speed, and predictability to the CIG pipeline.

“This is another example of how FTA is slashing red tape  and getting back to basics under the leadership of President Trump and Secretary Duffy so we can deliver projects for the American people,” said Federal Transit Administrator Marc Molinaro. “More than half of transit agencies who responded to our change agreed with dumping this Green New Scam calculations. When common sense wins, America can build again.”

FTA will revert to a previously used methodology that relies on the Environmental Protection Agency’s (EPA) National Ambient Air Quality Standards (NAAQS) designation, based on the city in which a transit project is located.

Additional Information:

The update amends FTA’s CIG Policy Guidance published in December 2024 and includes the feedback FTA received when it published its Proposed CIG Policy Guidance for public comment last August. Among the 16 respondents providing comments were transit agencies, interest groups, policy organizations, and individuals.

FTA will use this guidance for the CIG program’s FY2026 Annual Report ratings, available on FTA’s web site.

The updates support Executive Orders 14148, Initial Recissions of Harmful Executive Orders and Actions; 14154, Unleashing American Energy; and 14151, Ending Radical and Wasteful Government DEI Programs and Preferencing, signed by President Trump earlier this year.

FTA announced the comment period for the proposed update to the Policy Guidance in August.

For more information, visit the CIG Regulations and Guidance webpage.

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