Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) Grant Program

The Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) Grant Program, administered by the U.S. Department of Transportation through the Pipeline and Hazardous Materials Safety Administration (PHMSA), provides financial assistance to municipality- and community-owned utilities for the repair, rehabilitation, or replacement of high-risk and leak-prone natural gas distribution infrastructure. This funding opportunity supports efforts aligned with Executive Order 14154, "Unleashing American Energy," by prioritizing public safety while enabling modernization of gas distribution systems that are prone to leaks or pose significant safety hazards. The FY 2026 cycle makes $98 million available for this purpose, as part of the $1 billion total authorized under the Infrastructure Investment and Jobs Act (IIJA), with funds obligated through September 30, 2036. The NGDISM grant aims to reduce incidents, fatalities, and economic losses associated with aging infrastructure by supporting projects that repair or replace high-risk natural gas pipelines. In addition to construction projects, the program allows funding for the acquisition of safety equipment such as leak detection systems and line locators, provided these acquisitions are integrated into a broader infrastructure improvement plan. Eligible applicants include city, township, and county governments; municipal utilities; community-owned utilities; and federally recognized Tribal governments. For-profit entities and proposals to extend new service to unserved areas are ineligible. PHMSA requires that all submitted projects be operationally independent and ready for execution without requiring the acquisition of real property. There is no matching fund requirement, and applicants may submit proposals for multiple projects, though no single applicant may receive more than $125 million across the five-year program duration. PHMSA intends to make multiple discretionary awards via reimbursable grant agreements. Awardees will be reimbursed only after incurring eligible costs, which must be deemed reasonable, allocable, and necessary per federal regulations. The initial period of performance is up to 60 months, with the potential for case-by-case extensions. To apply, applicants must submit completed applications electronically via Grants.gov by 11:59 p.m. PST on May 22, 2026. All applicants must also maintain active registrations in the System for Award Management (SAM.gov). A complete application must include several forms, such as the SF-424, SF-424C or SF-424A/B depending on project type, a Budget Narrative, Project Narrative (up to 25 pages), Lobbying Disclosure forms, a Distribution Integrity Management Plan (DIMP), and the most recent Gas Distribution Annual Report (GDAR). These documents must follow prescribed formatting guidelines and submission protocols outlined in the Notice of Funding Opportunity (NOFO). PHMSA will evaluate applications based on technical and programmatic merit, including alignment with safety goals, economic impact, equipment effectiveness, risk mitigation, and overall project readiness. Additional priorities include benefits to disadvantaged urban and rural communities, workforce development potential, geographic diversity, and Buy America compliance. Final awards will be made by the Secretary of Transportation following comprehensive review and administrative approval. All applicants are encouraged to submit questions about the NOFO by May 15, 2026. Award announcements are anticipated after the evaluation process concludes. Selected applicants will receive formal notification via electronic communication and must sign and return award agreements within the prescribed timeframes. Reporting requirements include quarterly progress and financial reports, final performance documentation, and compliance with all relevant civil rights and regulatory policies. Ongoing grant oversight will be administered by PHMSA throughout the lifecycle of the funded projects.