Natural Gas Distribution Infrastructure Safety and Modernization Grant Program

CFDA 20.708 Active Grant
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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$196M FY2026
$195.6M
FY24
$587.2M
FY25
$196M
FY26*
* estimated

Who has received this funding

Organizations awarded under CFDA 20.708 (USAspending.gov).

Funded Projects

Examples of what this program has supported.

FY2025 On October 22, 2024, PHMSA announced 56 provisional grantees would receive a total of $196 million in FY 2024 awards. The next step for the 56 FY 2024 provisional grantees is the completion of NEPA requirements. To that end, the program office successfully hosted a NEPA webinar on May 27 and June 5, 2025; there were 81 total attendees. PHMSA completed 52 NEPA documents in FY 2025: 43 categorical exclusions and 9 environmental assessments. In addition, PHMSA initiated the obligation and execution of 105 grant agreements from the FY 2023 and FY 2024 projects selected for award on April 3, 2025. The total amount of funding obligated and executed in FY 2025 was $587,246,959.

Program Objective

Grant funds will be made available to municipality or community owned utilities (not including for-profit entities) seeking assistance in repairing, rehabilitating, or replacing high-risk, actively leaking, or leak-prone natural gas distribution infrastructure or portions thereof or acquiring equipment to reduce incidents and fatalities and to avoid economic loss. This grant program also strives to create jobs; benefit both rural and urban communities with safe provision of natural gas; and remediate aged and failing natural gas distribution pipelines and distribution pipe prone to leakage.

Eligibility

Eligible Applicants

  • Municipality/Township Government
  • Federally Recognized Tribal Government
  • County Government

Municipality-owned utilities, community-owned utilities, or Federally recognized Native American tribal governments owning and operating a natural gas distribution system.

Not Eligible: For-profit entities or any pipeline asset(s) owned by a for-profit entity.

How to Apply

Award Procedure

PHMSA will review applications based on merit, including the clarity of project narrative and reasonableness of costs as described in the budget narrative. The program applications must be completed in their entirety and all required information must be provided in detail. Each grant application will be evaluated in accordance with the criteria listed in the NOFO. A technical review panel of subject matter experts will evaluate the grant applications. NEPA information is not required for this program until after an entity has been selected for an award. This program is excluded from coverage under E.O. 12372.

60-180 days.

Program details & compliance

Description

Grant funds will be made available to eligible entities seeking assistance in repairing, rehabilitating, or replacing high-risk, actively leaking, or leak-prone natural gas distribution infrastructure. Funds may also be used to acquire equipment that will assist in reducing natural gas distribution pipeline incidents and fatalities, as well as to avoid economic loss from leaks. This grant funding will help communities of all sizes make their natural gas pipeline infrastructure safer, create good jobs, and reduce the risks to residents and businesses.

Mission Categories

Primary: Construction, Renewal and Operations

Other categories:
Rural Community DevelopmentEconomic Development

Use of Funds

Allowed Uses

Grant funds will be made available to municipalities or community owned utilities (not including for-profit entities) to repair, rehabilitate, or replace natural gas distribution pipeline systems or portions thereof or to acquire equipment to reduce incidents and fatalities, and to avoid economic loss. $196,000,000 - annually as appropriated.

Restrictions

Not open to for-profit organizations. The following costs are not eligible for reimbursement under the NGDISM Grant Program:
1. Pre-construction costs incurred prior to the effective date of the award for which PHMSA has not extended pre-construction authority in writing.
2. Entertainment, alcohol, or morale costs.
3. Expenses claimed or reimbursed by another program.
4. Excessive costs for general office supplies, equipment, computer software, printing, and copying.
5. Expenses that supplant existing operational funds.
6. Any costs disallowed or stated as ineligible in 2 CFR Part 200.
7. Restrictions on Use of Funds for Lobbying, Support of Litigation, or Direct Advocacy. The recipient and its contractors may not conduct political lobbying, as defined in the statutes, regulations, and 2 CFR § 200.450 “Lobbying,” within the federally supported project. The recipient and its contractors may not use Federal funds for lobbying specifically to obtain grants and cooperative agreements. The recipient and its contractors must comply with 49 CFR Part 20, U.S. DOT “New Restrictions on Lobbying.”

Required Documentation

PHMSA NGDISM Grant Team will conduct grant reviews, grant awards, and grant administration. PHMSA Office of Chief Counsel will conduct required legal reviews. Costs will be determined in accordance with 2 CFR 200, Subpart E. 2 CFR 200, Subpart E - Cost Principles applies to this program. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Reporting & Compliance

Records Retention
3 years

Applicable 2 CFR 200 Subparts

  • Subpart B — General Provisions
  • Subpart C — Pre-Federal Award Requirements
  • Subpart D — Post-Federal Award Requirements
  • Subpart E — Cost Principles
  • Subpart F — Audit Requirements

Formula

Statutory formula is not acceptable to this assistance listing.

Contacts

PHMSA NGDISM Grant Team
202-366-7652
1200 New Jersey Avenue SE, Washington, DC 20590
Data from SAM.gov Federal Assistance Listings. Source published: 2026-02-03. Spec v2.0. Last synced: 2026-05-29 05:36:41.