IRA Section 60501 – Neighborhood Access and Equity Grant Program

Section 60501 of the IRA adds a new section 177 to title 23 of the United States Code titled “Neighborhood access and equity grant program,” 23 U.S.C. § 177. The new section 177 appropriates $1.893 billion to the Administrator of the Federal Highway Administration (“FHA”) to award three categories of grants to state, local, and territorial governments and their subdivisions. The first category of grants is available to improve walkability, safety, and affordable transportation access, including through the removal, replacement, or reuse of certain surface transportation facilities that impede connectivity. The second category of grants is available for specific activities aimed at mitigating or remediating environmental impacts from surface transportation facilities that burden disadvantaged communities. The final category of grants is available for planning and capacity building activities related to pollution assessment and transportation equity in disadvantaged communities. Grants in this final category are available to nonprofit organizations and institutions of higher education that have partnered with any of the governmental entities listed above.

Section 177 appropriates an additional $1.262 billion to the FHA Administrator to provide grants for the same purposes described above, but requires that these funds be awarded only to specific communities. These communities include disadvantaged communities; those with community benefits agreements, anti-displacement policies, community land trusts, or community advisory boards; and those with a demonstrated plan to employ residents of the area impacted by the grant funding.

Section 177 also appropriates $50 million to the FHA Administrator to cover administrative costs as well as training, assistance, and capacity-building for local governments to deliver projects under Section 177.

All funds appropriated by section 177 will available until September 30, 2026. None of the funds may be used to create additional through travel lanes for single-occupant passenger vehicles.