Surface Transportation Block Grant (STBG) Program

The Federal-aid Surface Transportation Block Grant (STBG) Program, administered by the Iowa Department of Transportation (Iowa DOT), supports a broad range of transportation-related projects that improve the infrastructure and planning of public roads, bridges, and transit systems across the state of Iowa. This program operates under the authority of 23 United States Code 133 and receives its funding through the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL). It is designed to assist local jurisdictions and planning agencies, including Metropolitan Planning Organizations (MPOs) and Regional Planning Affiliations (RPAs), by offering financial assistance for eligible infrastructure and capital improvement projects. STBG funding may be used for a variety of eligible projects, including improvements to any Federal-aid highway, bridge, or tunnel project on public roads, and transit capital projects such as intercity bus terminals. It also supports pedestrian and bicycle infrastructure and planning activities. However, routine maintenance and utility costs unrelated to the project are not eligible. Each MPO or RPA may define a more specific scope of eligible projects, meaning applicants must consult their local agency to determine if their project qualifies. Additionally, the Iowa Transportation Commission has implemented a Federal-aid Swap Policy that allows certain funds to be distributed as state funds, particularly for projects managed by RPAs. Application processes for the STBG program vary by jurisdiction. Interested applicants must contact their designated MPO or RPA to obtain application forms and review region-specific deadlines, funding targets, and project criteria. In most cases, project proposals must be included in a Transportation Improvement Program (TIP), which is submitted to the Iowa DOT and then integrated into the Statewide Transportation Improvement Program (STIP). Federal and state oversight from the Federal Highway Administration (FHWA) and Federal Transit Administration (FTA) is required before project work can commence. Projects under the STBG program are subject to several administrative and regulatory requirements. For highway projects, design documents must be prepared by an Iowa-licensed professional engineer and approved by the DOT. Compliance with environmental, equal employment opportunity, disadvantaged business enterprise participation, and federal wage requirements is mandatory. Additionally, specific procurement, safety, and testing standards must be met for transit projects. Depending on the project type, consultant and right-of-way costs may or may not be eligible for reimbursement. Annual funding for this program is approximately $97 million, which is distributed among Iowa’s MPOs and RPAs based on predetermined targets. While individual award amounts and application deadlines vary across jurisdictions, all projects must align with the overarching program objectives and follow applicable state and federal laws. Interested entities should engage early with their planning organizations to navigate eligibility, project requirements, and the submission process effectively. Further information and application forms are accessible through local MPOs and RPAs. For a comprehensive understanding of applicable procedures and required documentation, applicants should refer to the Iowa DOT’s Local Systems Instructional Memorandums (I.M.s), including I.M. 1.000 and related administrative guidelines. All projects selected must follow Iowa DOT procedures for testing, inspection, and final acceptance.