Rural Surface Transportation Grant Program

CFDA 20.938 Active Grant
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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$409.1M FY2026
$346.8M
FY24
$367.3M
FY25
$409.1M
FY26*
* estimated

Program Objective

The Rural Surface Transportation Grant Program will provide Federal financial assistance to highway, bridge, and tunnel projects, highway safety projects, highway freight projects, and integrated mobility management projects, located in rural areas.

Eligibility

Eligible Applicants

  • Municipality/Township Government
  • U.S. State Government
  • Local Government Consortium
  • Federally Recognized Tribal Government

Eligible Applicants include: States, regional transportation planning organizations, units of local government, Tribal governments or consortia of Tribal governments, or a multi-jurisdictional group of entities described above.

How to Apply

Award Procedure

Rural program funding will be awarded to projects selected by the United States Department of Transportation through a competitive selection process. After an application is selected, the Department will work with the project sponsor to complete the necessary work prior to formally obligating the funding through an obligating agreement. The obligating agreement will establish the terms and conditions of the Rural program award.

The evaluation, selection and notification timeline varies from 4-9 months.

Program details & compliance

Description

The Rural Surface Transportation Grant program provides dedicated funding for projects in rural areas aimed at improving connectivity, safety, and reliability, generating economic growth, and improving quality of life.

Mission Categories

Primary: Highways, Public Roads, and Bridges

Use of Funds

Allowed Uses

Eligible projects for Rural grants are: a highway, bridge, or tunnel project eligible under National Highway Performance Program(23 USC 119); a highway, bridge, or tunnel project eligible under Surface Transportation Block Grant (23 USC 133); a highway, bridge, or tunnel project eligible under Tribal Transportation Program (23 USC 202); a highway freight project eligible under National Highway Freight Program(23 USC 167); a highway safety improvement project, including a project to improve a high risk rural road as defined by the Highway Safety Improvement Program(23 USC 148); a project on a publicly-owned highway or bridge that provides or increases access to an agricultural, commercial, energy, or intermodal facility that supports the economy of a rural area; a project to develop, establish, or maintain an integrated mobility management system, a transportation demand management system, or on-demand mobility services.

An eligible entity may bundle 2 or more similar eligible projects under the Rural program that are: included as a bundled project in a statewide transportation improvement program under 23 USC section 135; and are will be awarded to a single contractor or consultant pursuant to a contract for engineering and design or construction between the contractor and the eligible entity.

Rural grants may be used for development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities, and construction, reconstruction, rehabilitation, acquisition of real property (including land related to the project and improvements to the land), environmental mitigation, construction contingencies, acquisition of equipment, and operational improvements.

Restrictions

Eligible projects for Rural grants are: a highway, bridge, or tunnel project eligible under National Highway Performance Program(23 USC 119); a highway, bridge, or tunnel project eligible under Surface Transportation Block Grant (23 USC 133); a highway, bridge, or tunnel project eligible under Tribal Transportation Program (23 USC 202); a highway freight project eligible under National Highway Freight Program(23 USC 167); a highway safety improvement project, including a project to improve a high risk rural road as defined by the Highway Safety Improvement Program(23 USC 148); a project on a publicly-owned highway or bridge that provides or increases access to an agricultural, commercial, energy, or intermodal facility that supports the economy of a rural area; a project to develop, establish, or maintain an integrated mobility management system, a transportation demand management system, or on-demand mobility services.

Required Documentation

To submit an application through Grants.gov, applicants must: Obtain a Unique Entity Identifier (UEI) number; Register with the System Award for Management (SAM) at www.sam.gov; Create a Grants.gov username and password; and The E-business Point of Contact (POC) at the applicant’s organization must respond to the registration email from Grants.gov and login at Grants.gov to authorize the POC as an Authorized Organization Representative (AOR). Please note that there can only be one AOR per organization. 2 CFR 200, Subpart E - Cost Principles applies to this program.
2 CFR 200, Subpart E - Cost Principles applies to this program.

Matching Requirements

Rural grants may be used for up to 80 percent of future eligible project costs, except eligible projects that furthers the completion of a designated segment of the Appalachian Development Highway System under section 14501 of title 40 of the United States Code, or addresses a surface transportation infrastructure need identified for the Denali access system program under section 309 of the Denali Commission Act of 1998 may apply for up to 100 percent of the project costs. Other Federal assistance may satisfy the non-Federal share requirement for a Rural grant up to 100 percent of project costs.

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

Contacts

Gustavo Serratos
734-437-4744
1200 New Jersey Ave SE, Washington, DC 20590
Robert Hyman
2023664544
1200 New Jersey Ave SE, Washington, DC 20590
Data from SAM.gov Federal Assistance Listings. Source published: 2025-12-08. Spec v2.0. Last synced: 2026-05-30 02:33:54.