US DOT Announces $1.5B BUILD Grants for Rail Projects

The U.S. Department of Transportation has announced a significant $1.5 billion funding opportunity for fiscal-year 2026 through its highly competitive Better Utilizing Investments to Leverage Development (BUILD) grant program. This infusion of capital is aimed at spurring economic recovery and modernizing the nation’s surface transportation infrastructure, including critical rail, port, and highway projects.

Main Body:

In a major boost for American infrastructure, the U.S. Transportation Secretary has officially opened the application process for $1.5 billion in BUILD transportation grants for the 2026 fiscal year. The program is designed to fund surface transportation projects of national or regional significance that promise to enhance safety, mobility, economic competitiveness, and overall quality of life. Applications, which are due by February 24, 2026, will be awarded on a competitive basis to projects demonstrating a clear capacity to create jobs and stimulate economic growth through strategic infrastructure investments.

The BUILD program’s objectives align with broader trends in transit governance reform seen at the state level. For example, Illinois is advancing legislation like the Northern Illinois Transit Authority Act (SB 2111), which aims to create a new transit authority with expanded oversight of service planning, capital projects, and funding allocation. While its associated $1.5 billion in state funding is separate from the federal BUILD program, such structural reforms are designed to create more efficient, accountable, and coordinated transit systems—the very qualities that make projects attractive candidates for competitive federal grants like BUILD.

This announcement comes against a backdrop of historical challenges in securing consistent infrastructure funding. Shifting priorities between presidential administrations have previously led to project delays and cancellations, as seen in past disputes like California’s lawsuit against the Trump administration over terminated grants. Policy experts have urged lawmakers to prioritize stable, long-term funding solutions to avoid such disruptions. The BUILD program represents a key federal mechanism to provide that stability, enabling state and local agencies to move forward with ambitious, large-scale projects that might otherwise stall due to financial uncertainty.

Key Takeaways

• A new $1.5 billion funding round is available for significant U.S. rail, port, and highway infrastructure projects under the FY2026 BUILD program.
• The grants target projects that enhance economic competitiveness, safety, and community connectivity, with applications closing on February 24, 2026.
• The federal initiative complements state-level efforts to modernize transit governance, improving their potential to secure competitive national funding.

Editor’s Analysis

This $1.5 billion BUILD grant allocation is more than just a funding announcement; it’s a critical catalyst for the U.S. rail and freight sector. For the global market, this signals a continued U.S. commitment to modernizing its aging infrastructure, which is essential for maintaining fluid and efficient international supply chains. By rewarding projects with significant regional impact, the program incentivizes the development of integrated logistics hubs, intermodal facilities, and freight rail corridors that can alleviate bottlenecks and enhance competitiveness against global counterparts. This funding provides much-needed capital for projects that can deliver long-term economic returns, offering a degree of certainty in a sector often hampered by political and financial volatility.

Frequently Asked Questions

What is the BUILD grant program?

The Better Utilizing Investments to Leverage Development (BUILD) grant program is a competitive U.S. Department of Transportation initiative that provides federal funding for surface transportation infrastructure projects, including rail, highway, and port facilities, that have a significant local or regional impact.

What types of projects are eligible for BUILD grants?

Eligible projects include planning or construction for highway, rail, port, and truck parking infrastructure. The program prioritizes projects that will improve safety, quality of life, mobility, community connectivity, and economic competitiveness.

What is the deadline for the FY2026 BUILD grant applications?

The deadline for submitting applications for the fiscal-year 2026 funding round is February 24, 2026.