Learn more about Infrastructure Projects Authority Fund (IPAF) - Transformational Transit.
Yes
Yes. The Infrastructure Projects Authority Fund (IPAF) awards include the full multi‑year funding obligation at the time of authorization. The award specifies annual funding levels and associated milestones. While the entire award is obligated up front, MDOT reserves the authority to reduce or adjust the out‑year funding amounts if project milestones or performance conditions are not met.
Yes. However, if submitting more than one application, please indicate your priority order for each application. Stand-alone projects should each be a separate application but you can combine related projects (e.g., a series of bus shelters, new service plus related capital, etc.).
Illustrative, not exhaustive. Other transportation-related capital items are allowable. See the clause on page 5 of the Draft Call for Projects: "Eligible capital costs include vehicles, equipment, and technology/software required to implement the proposed service."
Yes. And yes, submit under the planning option.
At this time, we encourage applications for the IPAF program if you feel you can justify it being a "transformational" project based on the guidance provided in the call for projects. If we determine that your project would be better served under the Service Initiatives funding, we will move it there. For Service Initiatives funding, we are going to align the allocation percentages to equal IPAF: 100 percent startup, 90 percent, 80 percent and 70 percent.
A letter of support is sufficient.
Because these are state funds, MIO TAC cannot assist in making application. MIO TAC's funding is designated to help access federal funds. If an applicant will also be applying for federal funding to complete their project, please contact MIO TAC for assistance.
It was determined, for various reasons, that the 20 percent would not go toward LBO this year. The three-year funding plan for IPAF is modeled after the language regarding funding "local new service" in Section 10e(15) (MCL 247.660e).
Yes. Option 2 (projects submitted for review and comment only) should be used if you have a project that is not shovel-ready and/or you are not confident that it meets the IPAF criteria. The purpose would be to receive input from the IPAF team to help build a strong application for a future round of funding. If you believe it can be implemented/started in Fiscal Year (FY) 2027 and it meets the criteria itemized in the call for projects, you should submit under option 1 (new service/capital) or option 3 (planning).
Generally, you can name a partner but you need to justify why that partner is uniquely qualified to do this and why you don't think there would be a different result from a competitive procurement. Why is the price reasonable? Why are they uniquely situated? We will consider this on a case by case basis.
Yes. We will do our best to provide feedback either in writing or during a virtual meeting. The feedback timing will depend on the volume of applications received.
Year after year, tell us why your budget is increasing and what your capital versus operating costs are. We'll have a record of what you've been spending and your startup costs, and we will take it all into consideration.
A link to the draft call for projects is on the website, which also is where the final call for projects and the application link will be.
You would have to partner with an eligible recipient as defined. The definition is spelled out in the call for projects.
All agencies in the RTA region should consult with the RTA to determine their application process.
The RTA is eligible to apply directly or can be a listed partner on an application submitted by another eligible entity.
It depends on the timing of the activity. Generally, we consider them administrative expenses if they are incurred during the startup time of a new or expanded service. And it is considered an operating expense if it is incurred after a service is in full swing and operating on a regular basis. Both types can include things like staff time and benefit, costs for accounting/overhead, things like that. It is just called "administrative costs" if you need to cover those with this funding during the time of startup. Those expenses are called "operating" if you need funding for those types of expenses during the ongoing operation of the program/service.
Explain what conversations you have had with partners for the future funding. Tell us what kind of engagement you have had showing that either your board or the county board you need to go to have indicated willingness to put a millage increase or a new millage on the ballot. Have public transit millages been successful in the past? Is the millage rate you would need to request reasonable/passable in your community? Have you received any verbal commitments? Tell us about public engagement and what it has led you to believe about future viability.
An investment is considered transformational when it substantially improves the performance, function, reliability or integration of high-capacity transit services or networks linked to regional and statewide mobility and economic activity. What is considered a transformational transit investment is a subjective determination that includes many of (but not exclusively) these elements:
We hope to be able to fund multiple projects across Michigan. It will depend on the quality, size and number of applications/projects received.
Rail projects would have to be funded through an eligible entity. MDOT is not allowed to spend the IPAF funds directly. If you have a rail project in mind, please talk with us.
Continuation of existing services would not be eligible. This is meant to fund new service that expands your reach and is transformational.
Yes. We will accept multiple applications from the same agency and the RTA. You will coordinate the applications through the RTA. There is no limit on the number of applications a single agency can complete. If submitting more than one application, please prioritize them.
No specific cap but we will be working to spread the funds across the state. We will not be awarding the entire fund to only one or two entities. Requests must be reasonable.
Yes, at MDOT-IPAF@Michigan.gov.
The Neighborhood Roads Fund sets aside $100 million for transit, $65 million is in the IPAF, $35 million goes directly into the Comprehensive Transportation Fund (CTF) that comprises the budgets for the MDOT Office of Passenger Transportation and the MDOT Office of Rail. After five years, the distribution percentages swap to provide a lower amount for new services/studies and a larger amount will be transferred to the CTF.
Explain in the project description how you came to your aggregated prices.
Replacement vehicles would get a low priority. These should be included in the capital portion of an annual budget. But if you want new vehicles to expand, create new routes or convert to more clean energy, then those would be good requests for IPAF.
Actually, counties are eligible recipients if they are prepared to provide public transportation services with the funds. You should still include a letter or resolution from the board to clarify their intent and make sure you explain the plans for forming the transit agency (timeline, etc.) in your application.
That is correct. The operating assistance is provided based on a percentage of total eligible expenses. You’ll notice that the sheet auto-calculates the reimbursement percentage (i.e., the state funds requested) for each year. The Grand Total Needed is the total of those reimbursement columns. We ask for your revenue to ensure that you have enough local funding to have a balanced budget (expenses - state reimbursement = minimum required local funds). Beyond that, your revenue does not impact the amount of funding you are eligible to receive.
Project capital and start-up administrative expenses for selected projects may be funded at up to 100 percent. The startup period ends when operations begin.
Operating expenses during years one through three of project implementation will be funded at decreasing levels each year after startup (90 percent, 80 percent and 70 percent), consistent with Section 15 of MCL 247.660e.
After the third year of IPAF operating assistance, continuation services in rural and small urban areas are eligible for Section 5311 operating assistance.
IPAF funding does not require farebox to be backed out as ineligible. Reimbursement will be based on all eligible expenses, as is done for local bus operating (LBO) funding. The application budget spreadsheet will calculate the IPAF funding automatically based on the expenses entered.
There is going to be variability in this hourly rate depending on service area, service level, etc. There are no established benchmarks. We recommend contacting other transit agencies currently providing microtransit.
While there are no limits on characters/words, we encourage applicants to provide responses that clearly and succinctly address each required element. Additionally, if you have more documents to upload than there are upload boxes for, you may have to combine documents and upload them together.
