Transportation Alternatives Grant Program

Transportation Alternatives is a federally funded transportation grant program administered in South Dakota by the South Dakota Department of Transportation (SDDOT) Office of Project Development. The program uses federal transportation funds designated by Congress to support activities that enhance the intermodal transportation system and provide safe alternative transportation options for communities. The program focuses heavily on smaller-scale, non-motorized transportation projects that improve safety, connectivity, accessibility, and environmental outcomes. According to the Transportation Alternatives Summary and Application Guide updated in April 2026, approximately $9 million is available annually for the Transportation Alternatives program in South Dakota, with roughly $8 million distributed through a competitive project selection process managed by SDDOT. Projects may be limited to $600,000 depending on annual funding allocations. Infrastructure projects must request at least $50,000, while non-infrastructure projects have no minimum funding threshold. The Transportation Alternatives program supports a broad range of eligible transportation-related activities. Eligible projects include the construction, planning, and design of on-road and off-road pedestrian and bicycle facilities, safe routes for non-drivers, abandoned railroad corridor conversions for trails, scenic turnouts and overlooks, community improvement projects, environmental mitigation activities, and Safe Routes to School projects. Additional eligible activities include historic preservation of transportation facilities, vegetation management for roadway safety, stormwater mitigation, wildlife habitat connectivity improvements, and transportation-related environmental restoration. Safe Routes to School projects may include both infrastructure activities, such as sidewalks and bicycle lanes near schools, and non-infrastructure activities, such as public awareness campaigns, pedestrian safety education, and community outreach. Projects funded under the program are not required to be located on Federal-aid highways, but they must relate to surface transportation and satisfy one or more eligible activity categories defined by federal transportation law. Eligible applicants include a wide variety of governmental and nonprofit entities. Local governments, county governments, transit agencies, tribal governments, school districts, local education agencies, Metropolitan Planning Organizations with populations of 200,000 or fewer, public lands agencies, and nonprofit organizations are all eligible to apply. The program also allows states to apply on behalf of another eligible entity. All applicants must comply with federal and state transportation design standards, including Federal Highway Administration requirements, AASHTO standards, and current Americans with Disabilities Act accessibility requirements. SDDOT will oversee project design work orders, project lettings, and construction oversight. The local governmental agency sponsoring the project remains responsible for long-term maintenance of completed projects, even when the project is located within SDDOT right-of-way. Transportation Alternatives requires a minimum local cost share of 18.05 percent. SDDOT will reimburse eligible project expenses at 81.95 percent of approved costs, with the remaining share paid by the applicant. Applicants may voluntarily provide a higher local match during the application process to improve competitiveness. Certain donated services, labor, materials, and property may qualify as soft match contributions with prior SDDOT approval if properly documented. Costs associated with preparing the Letter of Intent and application materials are not reimbursable. In addition, non-infrastructure project expenses incurred before issuance of an SDDOT notice to proceed are considered non-reimbursable. The program also permits force account construction methods under limited circumstances if sponsors can demonstrate technical capability, cost effectiveness, compliance with construction standards, and approval through the Federal Highway Administration. The 2027 Transportation Alternatives funding cycle requires several mandatory submission steps. Applicants must first submit a mandatory Letter of Intent no later than July 15, 2026, by 5 p.m. Following submission of the Letter of Intent, applicants are required to participate in a mandatory development meeting and site visit with SDDOT staff before they may submit a formal application. Site visits and meetings will occur between July 16 and August 16, 2026. Full grant applications are due electronically to SDDOT no later than October 1, 2026, at 5 p.m. Central Time. The complete application package consists of three required components: the SDDOT Transportation Alternatives Application document, the Scope of Services document, and the Scope of Work document. Additional required attachments include detailed project budgets, project maps, meeting minutes, letters of support, sponsor resolutions, and project photographs. Applications are reviewed and scored by the Transportation Alternatives Recommendation Committee, which evaluates projects according to transportation relevance, planning compatibility, feasibility, community support, public benefit, economic impact, safety improvements, and maintenance commitments. The Transportation Alternatives Recommendation Committee scores applications using a detailed point-based system. Project types such as bike facilities, pedestrian facilities, non-motorized transportation improvements, and Safe Routes to School infrastructure projects receive the highest potential point values. Additional scoring categories evaluate transportation connectivity, public safety improvements, consistency with local and regional planning documents, project readiness, environmental considerations, and evidence of strong community engagement. Applicants are encouraged to provide personalized community support letters and demonstrate secured local matching funds. Selected projects must ultimately receive approval from the South Dakota Transportation Commission and be incorporated into the Statewide Transportation Improvement Plan before agreements are finalized. Funded projects are expected to be constructed within five years of award approval. Applicants seeking assistance or clarification during the application process may contact Logan Gran, Active Transportation Engineer for the South Dakota Department of Transportation. Questions may be directed by phone at 605-773-4912 or by email at Logan.Gran@state.sd.us. The Transportation Alternatives Summary and Application Guide provides extensive guidance regarding eligible activities, scoring criteria, project phasing strategies, force account construction methods, attachment requirements, and submission procedures. The program operates as an annual recurring funding opportunity, with one call for Letters of Intent issued for each fiscal year funding cycle.

Projects score higher when they demonstrate strong transportation connectivity, logical destination links, compatibility with local transportation plans, strong community involvement, and secured local matching funds above the required minimum. Applicants are encouraged to phase larger projects into standalone segments with logical stopping points and provide personalized community support letters rather than generic endorsements.