Innovative Finance and Asset Concession (IFAC) Grant Program

The U.S. Department of Transportation’s Build America Bureau, under the Office of the Secretary of Transportation, is offering the FY 2025–2026 Innovative Finance and Asset Concession (IFAC) Grant Program. This program is designed to enhance the capacity of eligible public entities to evaluate and implement public-private partnerships (P3s), particularly asset concessions, for infrastructure projects eligible under the Transportation Infrastructure Finance and Innovation Act (TIFIA). The program focuses on leveraging private sector involvement in planning, development, financing, construction, maintenance, and operations to deliver additional public benefits. Funding is available for two types of cooperative agreements: Technical Assistance and Expert Services. Technical Assistance awards support organizational capacity building and programmatic activities, while Expert Services awards fund advisor procurement for specific asset development projects. A total of $45.98 million is available, with $18.86 million from FY 2025, $18.86 million from FY 2026, and $8.26 million carried over from FY 2024. Awards may be up to $2 million each. Projects under $1 million receive full federal funding; amounts above $1 million require a 50% non-federal match. Technical Assistance Cooperative Agreements can fund activities such as asset scans, developing programs of existing assets, value-for-money analyses, public benefit evaluations, contract negotiations, and best practice identification for public interest protections. Expert Services Cooperative Agreements can cover feasibility studies, financial and legal planning, procurement analyses, public involvement, and assistance with asset concession agreements. Eligible applicants include states, tribal governments, units of local government, agencies or instrumentalities of these entities, and special purpose districts or public authorities. Applicants must own, control, or maintain an existing asset, have legal authority to transfer benefits and responsibilities, and be authorized to contract for services or hire staff. Eligible projects must develop an existing asset into an enhanced asset through a TIFIA-eligible project. Sample eligible projects include highway improvements, transit-oriented development, airport facilities, freight rail projects, and intermodal facilities. Technical Assistance agreements must include at least two assets; Expert Services agreements require at least one. Applications must be submitted through Grants.gov and include standard forms (SF-424, SF-424A, SF-424B, SF-LLL) and a narrative addressing proposal overview, need, goals, work plan, budget, and oversight. Applicants must also submit an asset information form. The application window opens August 13, 2025, and closes at 11:59 p.m. ET on October 1, 2025. This is a competitive process, with evaluation based on technical merit (need, goals, and strategy) and readiness (feasibility, private sector viability, capacity, and budget). The DOT expects to make between 30 and 40 awards, with a maximum of one cooperative agreement per recipient. Selected applicants will enter into cooperative agreements with performance periods up to 36 months. Funds are available until expended but cannot be used for costs incurred before the start date. Recipients must comply with applicable federal laws and regulations, including civil rights and nondiscrimination requirements, and are encouraged to use domestic goods and services. Reporting requirements include semi-annual performance and quarterly financial reports, as well as participation in program evaluations. For questions, applicants may contact IFAC Program staff via email at InnovativeFinanceTA@dot.gov or call Jennifer Hara at 202-839-0199. Additional resources and updates are available on the IFAC Program webpage.