Multimodal Transportation Fund

The Pennsylvania Department of Transportation (PennDOT) administers the Multimodal Transportation Fund (MTF), established under Act 89 of 2013, to enhance the Commonwealth’s transportation infrastructure across various modes. Through this program, PennDOT distributes $40 million annually, with $35 million dedicated to highway and bridge-related projects and $5 million allocated to projects in other modes such as pedestrian safety and transit-oriented development. This funding is disbursed through a competitive statewide grant process designed to improve connectivity, safety, and mobility for Pennsylvania residents. The MTF is intended to support public and private sector applicants aiming to implement transportation projects that contribute to community revitalization, infrastructure integration, and the safe movement of goods and people. Eligible applicants include municipalities, councils of governments, for-profit and nonprofit organizations, economic development agencies, public transportation providers, and port or rail/freight entities. Projects must enhance transportation assets and can include infrastructure for pedestrian and bicycle safety, access road development, streetscapes, traffic improvements, and transit-centered enhancements. The MTF operates strictly as a reimbursement program, meaning applicants must first fund and complete eligible project activities before being reimbursed. Grants require a minimum 30% match of local funds and are only awarded for projects with a total cost of at least $100,000. Awards cannot exceed $3 million. Eligible uses of MTF funds include construction, land acquisition, design and inspection services (capped at 10% of the award), administrative costs (up to 2%), and contingencies (up to 5%). Ineligible uses include lobbying, application preparation, and costs incurred before a formal agreement is executed. Applications are submitted online through the Commonwealth’s Electronic Single Application (ESA) system and must include several required exhibits, such as a project cost estimate, funding commitment letters, a color-coded map, financial statements, planning consistency letters, and, if applicable, appraisals or rail freight data. The application window generally opens between September and November and is publicly announced in the Pennsylvania Bulletin. Applications not fully complete or lacking required documentation may be rejected. Applications are evaluated on numerous criteria, including economic impact, regional significance, job creation, energy efficiency, project readiness, and the degree to which they exceed matching requirements. The selection process is conducted by a PennDOT committee, which may consult with Metropolitan and Rural Planning Organizations and state legislators. Successful applicants will receive a commitment letter, followed by a project kickoff meeting and execution of a reimbursement agreement. All funded work must be completed within three years of agreement execution. For assistance, applicants may contact PennDOT's Office of Multimodal Transportation at RA-PDMultimodalFund@pa.gov or by calling (717) 705-1230. The mailing address is Commonwealth Keystone Building, 400 North Street, 8th Floor, Harrisburg, PA 17105-3151. Additional resources, including guidance documents and forms, are available on the PennDOT website. The program is expected to reopen for the next funding cycle in fall 2025.