Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) Grant Program

The Natural Gas Distribution Infrastructure Safety and Modernization Grant Program is administered by the U.S. Department of Transportation through the Pipeline and Hazardous Materials Safety Administration. The program is authorized under the Infrastructure Investment and Jobs Act, which provides long-term federal funding to improve the safety and reliability of natural gas distribution systems across the United States. The initiative is designed to support public-sector and community-owned utilities in addressing aging infrastructure that poses risks to public safety, economic stability, and environmental conditions. The primary purpose of the program is to reduce incidents, fatalities, and economic losses associated with leak-prone natural gas distribution systems. Funding is directed toward projects that repair, rehabilitate, or replace high-risk pipeline infrastructure, as well as projects that acquire equipment to enhance safety and operational efficiency. The program emphasizes prioritizing communities most vulnerable to pipeline hazards and encourages projects that demonstrate clear safety benefits and measurable outcomes. For fiscal year 2026, approximately $98 million is available for award. Funding is provided through discretionary grant agreements and reimbursed based on eligible incurred costs. There is no minimum award amount, and applicants may submit proposals for multiple projects within a single application. However, a single entity may not receive more than 12.5 percent of the total program funding over the five-year authorization period. The program does not require cost sharing or matching funds, making it more accessible to eligible public entities. Allowable uses include infrastructure replacement, rehabilitation, and safety-related equipment purchases, while ineligible uses include system expansion, new service installation, and certain equipment-only construction purchases. Eligible applicants include city, township, and county governments; municipal utilities; community-owned utilities; and federally recognized Tribal governments that operate natural gas distribution systems. For-profit entities and projects involving privately owned infrastructure are not eligible. Applicants must demonstrate legal authority and operational capacity to carry out pipeline infrastructure improvements and must comply with federal pipeline safety regulations. Projects must focus on existing systems and cannot include expansion to new service areas or unrelated infrastructure activities. Applications must be submitted electronically through Grants.gov, and applicants are required to maintain active registration in the System for Award Management. Required application components include standard federal forms, a detailed project narrative, a budget narrative, and supporting documentation such as integrity management plans and annual system reports. The project narrative must address project scope, safety risk profiles, implementation strategies, and measurable outputs. The application process also requires certification of compliance with federal regulations, including nondiscrimination and Buy America provisions. Applications are evaluated based on technical and programmatic criteria, including alignment with safety objectives, risk mitigation effectiveness, project readiness, and economic impact. Projects are assessed on their ability to reduce incidents, address high-risk infrastructure, and provide measurable community benefits. Additional considerations include geographic diversity, workforce development, and benefits to disadvantaged communities. Awards are competitive, and not all eligible applications will receive funding. The application deadline for the fiscal year 2026 cycle is May 22, 2026, with questions due by May 15, 2026. The period of performance for awarded projects is up to 60 months, with possible extensions. Selected applicants will be notified electronically and must execute grant agreements before receiving reimbursement. Recipients are required to submit quarterly and final reports detailing financial expenditures and project progress. Program contacts are available through the PHMSA grant team via email and phone for technical assistance throughout the application and award process.

Prioritize projects addressing high-risk leak-prone infrastructure; clearly align with DIMP risk data; provide strong cost justification and measurable safety outcomes; ensure project readiness and detailed timelines