Multimodal Transportation Fund

The Multimodal Transportation Fund (MTF), administered by the Pennsylvania Department of Transportation (PennDOT), provides financial assistance for projects that improve transportation infrastructure and promote safe, reliable, and connected communities throughout the Commonwealth. Established by Act 89 of 2013, the fund was created to support projects across multiple modes of transportation, including public transit, aviation, rail freight, ports, bicycle and pedestrian facilities, and other local infrastructure assets. Each year, the program offers $40 million in total funding, with $35 million earmarked for highway and bridge-related projects and $5 million allocated for projects across all other transportation modes. The fund operates on a reimbursement basis, meaning that awardees must front costs and are later reimbursed for eligible expenditures. The MTF program is highly competitive and targets entities that can improve community access, increase safety for pedestrians and motorists, revitalize transit assets, and enhance overall connectivity. Eligible applicants include municipalities, councils of governments, businesses and nonprofits, economic development organizations, public transportation agencies, and port or rail freight entities. All applicants must demonstrate project ownership or a formal maintenance agreement with the asset owner. Proposed projects must coordinate with existing transportation infrastructure and can include improvements such as streetscaping, bicycle lanes, bus shelters, sidewalks, crosswalks, access roads, pedestrian signals, and transit-oriented development initiatives. Priority is given to projects that align with local and regional planning efforts, demonstrate strong matching support, and deliver quantifiable safety, mobility, or economic development benefits. MTF grants must be matched by a minimum of 30% in eligible local funding. Acceptable matching sources include municipal funds, private equity, Act 13 impact fees, and others, but may not include certain federal and state grants such as the DCED Multimodal Fund or the Automated Red Light Enforcement Program. Matching contributions can also include eligible pre-construction costs incurred after November 25, 2013, provided they meet MTF program criteria and are properly documented. The maximum MTF award is $3 million, and the total project cost must be at least $100,000. Funding can be used for construction, land acquisition, equipment purchases, and professional services related to design and engineering, though caps apply (e.g., engineering costs may not exceed 10% of the MTF award). Applications must be submitted electronically through the Commonwealth’s Electronic Single Application (ESA) portal at grants.pa.gov. Applicants must register for a Keystone Login and submit all required documentation, including a certified cost estimate, proof of matching funds, planning consistency letters, a project location map, permit lists, and audited financials. Additional documents may be required depending on the nature of the project (e.g., a rail freight carloadings worksheet or sales agreement for land acquisition). All applications must also include a Worker Protection and Investment Certification Form. Incomplete or non-compliant applications may be rejected without review. Applications for the FY2026–2027 cycle will be accepted from 8:00 a.m. on Monday, January 5, 2026, through 4:00 p.m. on Friday, February 13, 2026. Award announcements are expected approximately six months after the application window closes. Projects selected for funding must execute a reimbursement agreement within one year of award and complete construction within three years of that agreement. Throughout the project lifecycle, sponsors must provide quarterly updates and comply with PennDOT requirements for contractor prequalification, consultant selection, procurement, and inspection. All reimbursable costs must be submitted via invoice with proof of payment. Although the MTF is a Pennsylvania-specific program, it is distinct from the similarly named fund administered by the Commonwealth Financing Authority (CFA) under the Department of Community and Economic Development. Applicants are encouraged to consider submitting to both programs if eligible. All program materials, including the success manual, application instructions, and sample documents, are available through PennDOT’s MTF webpage. Questions may be directed to the PennDOT Office of Multimodal Transportation at [email protected] or by phone at (717) 705-1230.

Coordinate early with planning district and PennDOT; confirm match and documentation completeness to avoid disqualification.