New state transportation economic development grant targets villages and cities with populations less than 10,000

Contact: Michael Leon, TEDF Program Manager, Office of Economic Development 517-241-2568
Agency: Transportation

February 13, 2019 -- The Michigan Department of Transportation (MDOT) is announcing a new state Transportation Economic Development Fund (TEDF) category. TEDF Category B, or the Community Infrastructure Fund (CIF), was established by the Legislature and signed into law at the end of 2018. The CIF provides grants to selected cities and villages with populations less than 10,000 for road improvements. Eligible projects include reconstruction, replacement, rehabilitation and capital preventive maintenance of city or village streets. The maximum annual grant is $250,000. The requested grant amount must be matched at least equally by the requesting agency.

The following guidelines apply:  

  • Geographic distribution will be used as one of the criteria for grant selection. Eligible agencies may apply for a grant in consecutive fiscal years.
  • Grant applications for roadwork associated with other infrastructure projects, such as water and sewer projects, will be given additional consideration during review.  However, the costs associated with the other infrastructure work are not eligible for Category B funding. 
  • Applications for projects that are multi-jurisdictional in nature, even if the other jurisdiction is not using nor is eligible for Category B funding, will be given extra consideration during review.
  • Applications for projects on roadways that are not eligible for funding through the Federal Highway Administration or TEDF Category D will be given additional consideration. 
  • Finally, for this round, additional consideration will be given to applications for projects that can be completed by the end of the 2019 construction season.

In order to allow for grant recipients to better plan for projects associated with a grant, applications are now being accepted for Fiscal Year (FY) 2019 and FY 2020. Only one application will be accepted per agency; you may include up to five separate roadways on the application. The Category B application instructions and form are available at Applications must be received by Friday, April 5, to be considered for funding.

Enacted in 1987 and reauthorized in 1993, the TEDF helps finance highway, road and street projects that are critical to the movement of people and products, and for getting workers to their jobs, materials to growers and manufacturers, and finished goods to consumers. TEDF "Category B," or the "Community Infrastructure Fund," grants provide $3 million per year through FY 2023 to be allocated for road improvements in cities and villages with a population of 10,000 or fewer. More information about the program is available online at