New US Infrastructure Bill May Provide More Funding for Local Transit Projects

MIAMI, Florida - The $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) of 2021, which recently passed both chambers of Congress and was signed into law by President Joe Biden today, will greatly benefit transportation projects across the United States, including those in South Florida.

President Joe Biden signs the bipartisan Infrastructure Investment and Jobs Act on Monday during a ceremony on the South Lawn at the White House. (Kenny Holston/Getty Images)In an effort to maximize funding opportunities to implement local transit projects, the Citizens’ Independent Transportation Trust (CITT) recently commissioned its strategic consultant, IMG Rebel Advisory, Inc., to conduct a deep-dive analysis of the IIJA bill.

“We wanted to identify funding opportunities that could help us leverage federal dollars to supplement our local and state dollars; thus, increasing our funding for the development and construction of rapid-transit projects, the purchase of additional zero or low-emission transit vehicles, and the enhancement of pedestrian and bicycle infrastructure in our communities,” said CITT Chair Oscar J. Braynon. “We are very grateful to all of our community’s transportation advocates who helped get this much-needed infrastructure bill passed.”

Miami-Dade County Mayor Daniella Levine Cava joined leaders from across the country in Washington, D.C. today for the infrastructure bill signing.

“I'm thrilled to join President Biden and leaders from across the nation for the signing of this historic legislation,” said Miami-Dade Mayor Daniella Levine Cava. “Miami-Dade County has been working hard to make sure we’re ready to partner with the federal government to invest these funds into hundreds of local projects, including transit infrastructure – building a better-connected Miami-Dade while also creating thousands of good-paying local jobs. We’re ready to put these funds to work to create new opportunities for Miami-Dade residents and businesses as we build back our economy stronger than ever.”

The bill places a heightened emphasis on climate change mitigation, resilience, equity, and safety for all users, including cyclists and pedestrians, among other things. Braynon added that funds generated by the half-cent sales Surtax – a dedicated local-funding source for transit and transportation projects – gives Miami-Dade County an advantage over other regions when it comes to competing for the various federal grant programs.

The County’s sales Surtax generates approximately $300 million annually, and it has generated nearly $4 billion since its inception 19 years ago.

In its analysis of the bill, the CITT and IMG Rebel found that the bill significantly expands federal funding for transit, through such things as the Capital Investment Grants (CIG) Small Starts program. This could potentially provide millions of additional dollars for transit projects, such as the ones outlined in the Strategic Miami Area Rapid Transit (SMART) plan.

In addition, the bill also increases the federal share provided through the Small Starts program from $100 million to $150 million, and it increases the threshold for projects to be eligible for this expedited program from $300 million to $400 million.

Earlier this year in June, the Miami-Dade County Department of Transportation and Public Works (DTPW) secured $99.9 million in federal dollars through the CIG Small Starts program for the South Dade TransitWay Corridor (South Corridor) – one of the six rapid-transit corridors of the SMART Plan. The $99.9-million grant represents 33 percent of the total project cost of $299.9 million. The other two thirds are equally being funded by local Surtax dollars and state dollars. The bill’s enhancements to the Small Starts program should allow for other SMART Plan Corridors and critical transit projects to be funded through this expedited process.

Miami-Dade County receives a large share of transit funding from Federal Transit Administration (FTA) formula grant programs. The IIJA bill increases the proposed funding authorization to the formula grant programs, such as the Urbanized Area Formula Grants, Bus and Bus Facilities Formula Grants, and State of Good Repair Grant, by over 40% compared to the previous Fixing America’s Surface Transportation (FAST) Act bill. This will result in funding share increases for Miami-Dade County.

The County has taken advantage of leveraging FTA formula programs, as well as $142 million in competitive grant programs for the SMART Plan.

For example, aside from the nearly $100 million the South Corridor received from the CIG Small Grants program, in 2018, this corridor also benefited from receiving $9.5 million in Park & Ride improvements through the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Transportation Discretionary Grant program, and in receiving $1.04 million in 2019 through the Transit Oriented Development (TOD) Planning-Pilot program. The over $1 million TOD grant money is proposed to be used to plan for TOD at 16 stations along the 20-mile South Corridor, which is currently being built to offer Gold Standard Bus Rapid Transit (BRT) service that is anticipated to begin in early 2023.

Other SMART Plan corridors also have benefited from receiving TOD Planning-Pilot grant funding.

In 2016, the County received $960,000 to help fund the Master TOD Plan for the East-West Corridor. And in 2020, the County received $900,000 in federal funding for TOD planning along the Beach Corridor for four stations along the bay-crossing trunkline, from the existing Metromover system to Miami Beach, and six stations from the Metromover system to NW 41 Street.

Further, the bill makes “transit-oriented development projects” a permanent eligibility for projects that seek federal loans and loan guarantees for railroad capital improvements under the Railroad Rehabilitation and Improvement (RRIF) program. In the new bill, the pro-gram now has $250 million in credit assistance for railroad capital projects.

Aside from federal funds that are helping to move forward SMART Plan corridor projects, the County also has greatly benefited from federal tax dollars that are helping to add more reliable and eco-friendly hybrid and battery-electric buses.

Between 2016 and 2021 alone, the County received nearly $29 million dollars through the Bus and Bus Facilities Formula Grants program. This year, the County received approximately $125 million in federal-formula funding, with $56 million from Urbanized Area Formula grants, $32 million from State of Good Repair grants, and $7 million from Bus and Bus Facilities Formula grants.

The County could also see the creation of more local jobs thanks to new highway, bridge, transit, and climate-infrastructure construction projects. The IIJA bill also calls for 10 percent of small business participation in funded construction projects, and it includes outreach and training funds for small businesses and disadvantaged businesses, which is generally comprised of minority and women-owned contractors.