Transportation Demonstration Program

The Consolidated Appropriations Act, 2021 (Pub. L. 116-260, December 27, 2020) ( FY 2021 Appropriations Act ) appropriated $100 million to expand intermodal and multimodal freight and cargo transportation infrastructure, including airport development under chapter 471 of title 49, United States Code. The Transportation Demonstration Program is listed under Assistance Listing 20.936. See Section C of the program NOFO for a description of the limited eligibility under this program.

The safe and efficient movement of freight is vital to the Nation's economic growth and to the creation of well-paying jobs for millions of Americans. The national freight system comprises physical infrastructure or facilities, such as ports, waterways, airports, railroads, pipelines, roadways, and warehouses, as well as diverse carriers, shippers, and suppliers that use this infrastructure to transport goods. Intermodal or multimodal freight, which refer to a cargo that transfers from one transportation mode to at least one other transportation mode as the shipment moves from origin to destination, are an integral component of the freight system. The goal of the Transportation Demonstration Program is to fund projects that expand intermodal and multimodal freight and cargo transportation infrastructure. Projects funded under this program may augment existing intermodal and multimodal assets in close proximity with capital investments that strengthen the infrastructure connections. Funding may be used to eliminate artificial barriers and fill gaps that exist within current grant programs or to streamline connections between aviation, maritime, rail, and highway infrastructure and generate efficiencies in inventory and supply chain management.

Due to the prescriptive project eligibility criteria in the FY 2021 Appropriations Act, the Department expects that eligibility under the program will be limited to very few applicants. Potential applicants should carefully review the eligibility criteria in Section C of the NOFO to assess whether the applicant is an eligible applicant and the project meets the statutory requirements.