Local Freight Impact Fund

The Local Freight Impact Fund is a state funded grant program administered by the New Jersey Department of Transportation to support counties and municipalities in addressing the impacts of freight movement on local transportation systems. Established through state legislation in 2016, the program reflects New Jersey’s strategic priority to maintain and enhance infrastructure that supports commercial trucking, economic development, and safe goods movement. The program is designed to elevate freight transportation needs to the same level of importance as passenger mobility by funding improvements to roads, bridges, and related infrastructure that carry heavy truck traffic. The primary purpose of the program is to provide financial assistance for projects that mitigate the effects of freight activity while improving safety, accessibility, and system efficiency. Eligible projects must directly support freight movement and may include bridge preservation, pavement preservation, roadway preservation, new construction, truck safety and mobility improvements, and pedestrian safety enhancements. These project types are intended to extend the life of existing infrastructure, improve access to freight nodes such as ports and distribution centers, and promote economic growth through better transportation connectivity. Funding is restricted to projects under the jurisdiction of New Jersey counties or municipalities, and applicants must demonstrate that their proposed project provides meaningful access to a freight node such as a port, warehouse, or distribution center. Additionally, projects must meet a minimum threshold of 10 percent large truck traffic within the project area, supported by a formal traffic study. Allowable costs generally include construction-related expenses, with limited provisions for design costs and, in certain cases, engineering and right of way acquisition if justified by need and approved by the Commissioner. Certain expenses, such as utility relocation or internal labor costs for construction, are explicitly ineligible. The application process requires submission through the SAGE online grant management system. Applicants must complete a detailed scope of work explaining how the project meets program criteria and provide supporting documentation including maps and traffic data. A resolution agreement must also be submitted through the Project Management Reporting System. Applications are evaluated based on criteria such as connectivity to freight nodes, truck volume, safety considerations, and overall project readiness. Additional consideration may be given to projects that incorporate proven safety countermeasures or address equity concerns in underserved communities. The program operates on an annual cycle, with applications typically accepted between October and December, followed by grant announcements between March and May. Awarded projects must be advanced to construction within 36 months of grant notification, emphasizing the importance of project readiness at the time of application. Applicants are encouraged to demonstrate their ability to meet this timeline, including securing necessary permits and right of way approvals for new construction projects. Award decisions are made following a competitive review process in which projects are scored and ranked based on both application materials and field evaluations. Final approvals are issued by the Commissioner of Transportation, and applicants are notified through the state’s project management systems. The program is competitive, with limited funding distributed among selected projects each cycle. For example, in one recent funding round, 23 projects across multiple counties and municipalities were awarded funding from a total pool of 28 million dollars, reflecting strong demand and selective awarding. The Local Freight Impact Fund provides a critical funding mechanism for local governments to address the challenges associated with freight transportation infrastructure. By focusing on safety, mobility, and economic development, the program supports long term improvements to New Jersey’s transportation network while ensuring that local communities can effectively manage the impacts of increasing truck traffic. Applicants are encouraged to engage with NJDOT district offices for guidance throughout the application and implementation process.

Clearly demonstrate connection to freight nodes and provide strong traffic data showing truck volume above threshold; include detailed maps and supporting documentation to improve scoring; ensure project readiness within 36 months