FHWA Opens Applications for $800 Million in Funding to Reduce Climate Pollution from Transportation, Encourage Cleaner Construction Materials

WASHINGTON, DC… The U.S. Department of Transportation is making available $800 million in funding under the Low Carbon Transportation Materials (LCTM) Program as part of the Biden-Harris Administration’s Investing in America agenda and ongoing work to tackle the climate crisis. Administered by the Federal Highway Administration (FHWA), LCTM will support the use of low-carbon materials and products used in transportation that reduce air pollution, specifically greenhouse gas emissions (GHG). 

 FHWA made $1.2 billion available under this program to state departments of transportation in March 2024 and is now opening funding up to other potential applicants such as cities, metropolitan planning organizations, tribal governments and other federal, state and local agencies that also carry out transportation activities.  

 “As the Biden-Harris Administration works to modernize our nation’s transportation systems, we’re also making sure to use cleaner construction materials that reduce carbon pollution,” said U.S. Transportation Secretary Pete Buttigieg. “With today’s announcement, we’re broadening these efforts so more key stakeholders in the transportation sector have the funding they need to build a cleaner future.”

 “We’re aiming to provide Americans with the best transportation at less cost to the environment,” said Federal Highway Administrator Shailen Bhatt. “FHWA is making the program available to cities, tribes, and other local agencies to help ensure the entire transportation sector invests in sustainable transportation and takes part in addressing climate change.” 

 The Low Carbon Transportation Materials Grants program is one of three new programs at FHWA created by President Biden’s Inflation Reduction Act—the largest investment in climate action and clean energy in history. As part of the Biden-Harris Administration’s whole-of-governmentFederal Buy Clean Initiative, and consistent with Executive Order 14057, Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability, FHWA continues to closely collaborate with the Environmental Protection Agency and General Services Administration to implement related low carbon programs that were authorized in the Inflation Reduction Act. 

 The LCTM program makes $2 billion available under the Inflation Reduction Act for State Departments of Transportation, cities, Tribes, Metropolitan Planning Organizations, and other agencies to incorporate more materials that create less pollution, including steel, concrete (and cement), glass, and asphalt.

 In addition to funding the use of cleaner construction materials that reduce pollution and carbon emissions for transportation projects, the program will provide resources for agencies to implement processes and coordinate with industry to quantify the emissions of construction materials. That information will allow substantially lower carbon materials to be identified by comparing emissions to established thresholds. Funding can also be used to develop specifications for low-embodied carbon materials that ensure adequate engineering performance for appropriate use on Federal-aid projects. Applicants are encouraged to update procurement processes to allow for or encourage the use of these materials. 

 The Notice of Funding Opportunity (NOFO) is available from the program website: Low Carbon Transportation Materials Grants Program.