Transportation Funding: Types of Grant Programs and How to Apply!
Note from the Editor
We've updated this blog to reflect the latest data from 2025, ensuring you have the most accurate and relevant insights. In addition, we've refreshed our quick guides to Funding Opportunities and How to Write a Proposal to provide even more support for winning funding for your projects. Be sure to check them out for the latest tips and best practices!
You may have heard about the financial assistance available in the intelligent transportation solutions (ITS) industry, but do you know how to access it?
When it comes to ITS projects in your community, the first question is, what is the nature of the project? This includes the technical design and the clear definition of the outcomes. Additional questions include: where will I get the funds, and what is the availability of annual funding?
Locating and accessing innovative financing opportunities has become increasingly crucial in addressing the growing demand for transportation infrastructure.
What Can I Use the Funding For?
Both large and small cities are eligible for grant funding. These grant funds can be used for traffic system upgrades and expansion. The key to securing funding typically involves strategies that align with safety initiatives, such as Vision Zero. Focusing on safety initiatives and upgrades that benefit the safety of drivers and pedestrians is key. Demonstrating that drive times and congestion reduction are also a winning strategy that saves the environment and reduces power consumption.
Types of Grants Include:
Public-Private Partnership
Public-Private Partnerships (PPPs) are cooperative arrangements between government entities and private sector organizations for the provision of public infrastructure, services, or projects.
The key to a successful PPP is aligning public sector objectives with private sector know-how, momentum, and funding. If a business opportunity can be defined and a market created, then it might be possible to have the private sector pay to achieve your public sector objectives. There are several variations on public-private partnership, including availability payments and concession models.
Federal Grant Programs
The Infrastructure Investment and Jobs Act (IIJA) is the $1.2 trillion investment signed into law by President Biden in November 2021, and it’s having a positive impact on companies that support State and local transportation agencies across the country. The IIJA is a major piece of legislation with the $1.2 trillion allocated over 8 years, including over half a trillion in new infrastructure investments, representing a very large spending package.
One prominent consulting firm has reported that it expanded its workforce with federal grants by more than 20% in 2023 and plans to add another 1,000 transportation planners, engineers, construction managers, and technical experts in 2024, due to the continued programming of infrastructure funds.
State and Local Grant Programs
State or local funding sources can also be explored, particularly for projects identified in the statewide Transportation Improvement Program (TIP). It’s important that organizations stay informed about federal, state, and local programs, build strong partnerships, explore innovative financing mechanisms and align projects with regional priorities.
The Grant Application Process
From the IIJA down to regional, state, and local funding sources, there is an encouraging array of potential funding options available for transportation.
How to Apply: Applicant Resources
Unsure where to start? We have the tools. During the application process, prospective applicants should remember the following:
- Thoroughly research available grants to find one that aligns with your project's objectives.
- Understand the grant's specific program information, eligibility criteria, and objectives.
- Pay close attention to the requirements for eligible applicants, submission deadlines, and required documents, and ensure your proposal meets all the necessary criteria.
Planning is important. We recommend these early steps for this competitive process:
- Establish early collaboration.
- Prepare your application before the opening period.
- Check the Notice of Funding Opportunities (NOFO).
- Understand timelines of the grant lifecycle.
- Stay informed with news and updates.
- Ensure adequate resource allocation.
Additional Resources
Remember to explore funding options that align with your priorities and goals. With our expertise in the ITS industry, SWARCO McCain is here to help you stay informed about the wide range of funding opportunities available and how to access them.
Here are some helpful resources we have created on grant funding:
