Infrastructure is the lifeblood of every community. Whether it is a road improvement, new highway interchange, or water treatment plant, behind every infrastructure project is a complex journey of federal funding – a process blending planning, advocating, and approving the budget.

Securing federal funding for infrastructure projects is a competitive process that requires careful and detailed planning. Getting federal funding enables public agencies to address this complex and resource-intensive responsibility. This type of funding can be the key to fostering economic growth, improving quality of life, and ensuring a community's long-term well-being.

The Federal Funding Process

The federal budget fiscal year runs from Oct. 1 to Sept. 30. Depending on the agency, most organizations have a cutoff for obligating end-of-year funds by May 31, accounting for the procurement process. Outside of operations and maintenance funding, any funds for the subsequent year will often not be usable until January or February, even though the funds can be appropriated as early as October.

While some specifics vary by federal agency and funding type, the federal funding process is the same across the board, as illustrated in the following graphic. Each step in the process is essential, and some steps need special attention.

An infographic summarizing the seven-step process for agencies to obtain federal funding. — The federal funding process includes steps for both federal and public agencies.

Determining Infrastructure Needs

Determining infrastructure needs requires a holistic approach. Here are some questions to consider when exploring the bigger picture:

Evaluate current demands. What operations and maintenance activities do you currently require? What improvement projects are already in the design or construction process? For which new infrastructure projects has procurement already begun?
Forecast future growth. What is the current growth rate? What factors can cause this to continue, decelerate, or accelerate? How much additional development is expected?
Anticipate change. What is the average citizen's age, and how does that affect infrastructure needs? What resiliency plans are in place? How is safety being incorporated and addressed? How will technology impact infrastructure needs and compliance requirements?

Applying for Federal Funding

Depending on the agency and funding program, the application process can be cumbersome. Here are some tips for completing the federal funding application:

Be proactive with project prioritization. The government regularly announces new funding. Understanding which projects are pending and their respective priority can speed up the application process.
Understand the program's eligibility requirements. Invest the time and resources into submitting compliant and appropriate grant funds requests.
Clearly explain the need for the project and its benefits. It is important to include community development when submitting your budget requests.
Carefully review the application requirements, which vary depending on the funding program. Some budget proposal applications require additional financial information and other documentation.

Compliance Requirements

The process doesn't stop once funding is received. Federal funding compliance requirements serve as an insurance policy for fiscal responsibility. Once a public agency receives funding, it is responsible for compliance and regulatory reporting throughout the funding and project lifecycle.

Examples of compliance requirements include:

Environmental protection.
Contractual agreements, i.e., Buy America Act, Davis Bacon Wages, small and disadvantaged business inclusion.
Financial reporting.
Historic preservation.

Federal Funding Types

Not all federal funding is equal. When determining which type of funding is best for a public agency, it's important to understand the difference between the infrastructure-related funding levels and the available options. Some grants are considered formula grants, meaning there is a predetermined formula for awarding the monies.

The Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law, creates enormous funding opportunities, allowing the federal government to spend and prioritize funding infrastructure programs and projects. The law improves the country's infrastructure and creates millions of jobs and boosts the economy. For more information about how this affects a department of transportation, check out our four-part IIJA grant management blog series.

The Federal Highway Administration has multiple sources and reference documents pertaining to the Bipartisan Infrastructure Law, including information about competitive and formula grants.

In addition to IIJA funding, examples of infrastructure funding and discretionary grants include:

Build America Infrastructure Spending: This often refers to federal infrastructure project investments. It encompasses funding for various sectors, such as transportation, public buildings, and utility infrastructure. It also aims to improve overall infrastructure and promote economic growth.
Better Utilizing Investments to Leverage Development (BUILD) Grants: These competitive grant programs support transportation and infrastructure projects. They focus on enhancing transportation systems, safety, mobility, and connectivity.
Infrastructure for Rebuilding America (INFRA) Grants: These are federal grants for large-scale transportation infrastructure projects. They emphasize projects that address critical transportation challenges and promote innovation.

Infrastructure Funding Next Steps

Federal funding is critical for public agencies to meet increasing demand to maintain and improve infrastructure. The federal funding process can be complex and time-consuming, but ultimately pays dividends with safer, more secure, and more resilient infrastructure. By understanding the process and meeting the requirements, public agencies can increase their chances of successfully securing federal funding.

GeoDecisions – Your Trusted Advisor

Specific to funding management and process enhancements, GeoDecisions has proven experience with project prioritization, funding strategies, collaboration tools, and grant request process automation. We also provide the following services:

Geographic information systems (GIS): GIS tools visualize and analyze spatial data, helping identify patterns and trends.
Data analytics: Similar to GIS tools, data analytics also identify trends and patterns, helping to make more informed decisions.
3D modeling: Models are an additional visualization tool for realistic representation.
Simulations: Simulations bring a project to life by analyzing performance prior to construction. Identifying potential challenges improves both design and construction processes.

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Understanding the Federal Funding Process for Infrastructure Projects