Transportation Economic Development Fund - Category A

The Transportation Economic Development Fund (TEDF) Category A program, administered by the Michigan Department of Transportation (MDOT) through its Office of Economic Development, is designed to stimulate economic growth across the state of Michigan by supporting strategic transportation infrastructure improvements. MDOT manages approximately 10,000 miles of the state's highway system, serving as the central backbone for Michigan's 120,000-mile roadway network. Through TEDF Category A grants, MDOT aims to enhance economic potential and improve residents' quality of life by encouraging job creation and retention in targeted sectors. The core purpose of the Category A grant program is to fund transportation-related projects that address critical needs in road condition, safety, capacity, or accessibility. These projects must be directly tied to immediate and non-speculative economic development initiatives that are poised to create or retain permanent jobs in Michigan. The initiative supports projects serving key target industries such as manufacturing, tourism, agriculture and food processing, high-tech research, forestry, mining, and large-scale office or medical research facilities. Eligible projects must also demonstrate a positive and immediate impact on local employment and economic growth, including an increase in the local tax base if the applicant is a local unit of government. Eligible recipients include the Michigan Department of Transportation itself, county road commissions, and city or village street agencies. Projects must demonstrate a defined transportation need linked to economic development and must already have complementary infrastructure or services either available or committed (e.g., fire protection, water, sewer, electricity). A minimum of 20% matching funds is required for participation. Eligible matching contributions may include project planning, engineering, or right-of-way acquisition costs. The application process begins with a Letter of Interest (LOI) submitted to the MDOT Office of Economic Development. If a proposed project meets the basic eligibility requirements, the applicant is encouraged to submit a full application. Applications are accepted and processed on a year-round basis, with evaluations and recommendations occurring up to five times per year. The review and investment strategy is determined by MDOT’s Office of Economic Development in coordination with the Michigan Economic Development Corporation. Applications must align with one of several scheduled Relative Transportation Need (RTN) Committee meetings, which occur periodically throughout the year. For fiscal year 2026, key submission milestones include multiple LOI and application deadlines spread across ten scheduled cycles from January 2025 to November 2026. Applicants must ensure all required documentation is submitted accurately and on time, as incomplete applications may be delayed to the next review cycle. Successful applications can receive funding in the current or a future state fiscal year depending on availability and project readiness. For further guidance, applicants can contact the MDOT Office of Economic Development at 517-335-1069 or visit the program page at www.michigan.gov/tedf. This grant opportunity recurs regularly, making it a consistent avenue for local agencies to align transportation infrastructure with economic priorities.

Projects that exceed the 20% match requirement receive evaluation credit; planning/design/right-of-way expenses can count toward the match.