Office of Operations
21st Century Operations Using 21st Century Technologies

Applying Transportation Systems Management and Operations to Rural Areas

Appendix A. USDOT Funding Opportunities

Implementation costs vary widely depending on the project, location, size, duration, and equipment required. This section provides an overview and resources for some funding opportunities for rural communities. In addition to FHWA grants, there are other grants available from the Bipartisan Infrastructure Law (BIL).36 This table is not intended to be comprehensive. There may be other funding opportunities on USDOT websites. For any additional questions on this, please contact the local FHWA Division Office.

Table 17. USDOT Funding Opportunities.
Funding opportunities Web links

Formula Grants for Rural Areas Program

BIL, continues this program, which provides capital, planning, and operating assistance to States and Federally recognized Indian tribes to support public transportation in rural areas with populations less than 50,000. 

Visit for more information: https://www.transit.dot.gov/funding/grants/fact-sheet-formula-grants-rural-areas 

Ferry Service for Rural Communities Program

IL provides $200 million in fiscal year (FY) 2022 and an additional $200 million per year from FY 2023 – FY 2026 (subject to annual appropriations) to make Federal resources available to States to ensure basic essential ferry service is provided to rural areas. 

Visit for more information: https://www.transit.dot.gov/funding/grants/fact-sheet-ferry-service-rural-communities

Rural Surface Transportation Grant Program (23 U.S.C. 173)

This program will provide $2 billion (total available FY 2022-FY 2026) to support projects to improve and expand the surface transportation infrastructure in rural areas to increase connectivity, improve the safety and reliability of the movement of people and freight, and generate regional economic growth and improve quality of life.

Visit for more information: https://www.transportation.gov/grants/rural-surface-transportation-grant

Notice of Funding Opportunity for the Department of Transportation’s Multimodal Project Discretionary Grant Opportunity, 87 FR 17108 (Mar. 25, 2022), https://www.govinfo.gov/content/pkg/FR-2022-03-25/pdf/2022-06350.pdf

Highway Safety Improvement Program (HSIP)

The BIL continues the HSIP objectives to reduce the number of traffic fatalities and serious injuries on all public roads. The HSIP requires a data-driven, strategic approach to improving highway safety on all public roads with a focus on performance.

Visit for more information: https://safety.fhwa.dot.gov/hsip/

https://www.fhwa.dot.gov/bipartisan-infrastructure-law/hsip.cfm

Accelerated Innovation Deployment Program

The AID Demonstration provides funding as an incentive to accelerate the deployment and adoption of innovate practices and technologies in highway transportation projects. Between 2014 and 2020, FHWA has awarded more than $86.9 million in 117 grants to Tribal governments, Federal Land Management Agencies, and State departments of transportation. AID Demonstration is authorized within the Technology and Innovation Deployment Program (TIDP) under the Infrastructure Investment and Jobs Act and the anticipates $10 million of TIDP funding to be made available for AID Demonstration in each FY 2022 through FY 2026. The grants are administered through the FHWA Office of Transportation Workforce Development and Technology Deployment.

Visit for more information: https://www.fhwa.dot.gov/innovation/grants/

Federal Highway Administration State Transportation Innovation Council Incentive Program

This program provides funding up to $100,000 per State per Federal fiscal year to support or offset the costs of standardizing innovative practices in the State transportation agency or other public sector State Transportation Innovation Council stakeholder. STIC Incentive funds may be used to develop guidance, standards, and specifications; implement process changes; organize peer exchanges; offset implementation costs; or other activities the STIC identifies that address Technology and Innovation Deployment Program (TIDP) goals.

Visit for more information: https://www.fhwa.dot.gov/innovation/stic/guidance.cfm

https://www.fhwa.dot.gov/innovation/stic/STIC-Factsheet_2021-508.pdf