State of Good Repair (SGR) Grants - American Cities Climate Challenge
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State of Good Repair (SGR) Grants

Federal Agency


Federal Highway Administration (FHA)


To provide capital assistance for the maintenance, replacement, and rehabilitation projects of rail and bus systems to help transit agencies maintain assets in a state of good repair.

Applicant and/or Project Eligibility Requirements

Eligible recipients are state and local government authorities in UZAs with fixed guideway and high intensity motorbus systems in revenue service for at least seven years. State of Good Repair Grants funds are available for capital projects that maintain a fixed guideway or a high intensity motorbus system in a state of good repair.

Decarbonization Considerations

Ensuring quality public transit incentivizes ridership and a shift away from personal automobilies. Repaired vehicles may be fitted with electric or other fuel-efficient technologies.

Equity Considerations

Public transit disproportionately benefits racial minorities and other vulnerable populations. Ensuring quality transit options can, among other things, help these communities access jobs and economic opportunities.

Helpful Tips

Evaluation criteria include the size of the rail system; the amount of funds available to the applicant; the age and condition of the rail rolling stock that has exceeded or will exceed the useful service life of the rail rolling stock in the 5-year period following the grant; and whether the applicant has identified replacement of the rail vehicles as a priority in the investment prioritization portion of the transit asset management plan of the recipient pursuant to part 625 of title 49, Code of Federal Regulations (or successor regulations).

Other Notes

This is a formula fund. DOT has a second, $1.5 billion competitive grant fund. Funding is available during the year of apportionment and the three years following.

Deadline (Announced or Anticipated)

March 7, 2022

Funding Available


Max Award Amount


Expected Allocations


Average Award (Estimated)


Matching Funds

20% match required

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