State DOT secures $50M flexible transportation fund for infrastructure grants

The North Dakota House Appropriations Government Operations Division convened on April 16, 2025, to discuss significant funding allocations aimed at enhancing infrastructure across the state. A key focus of the meeting was the proposed flexibility in the Department of Transportation's (DOT) funding mechanisms, particularly regarding grants for non-oil producing counties.

The committee highlighted the need for the DOT to have the ability to allocate discretionary funds more effectively. Currently, the flexible transportation fund is limited to non-oil producing counties, which restricts funding for projects in oil-producing areas. The proposed changes would allow the DOT to utilize $50 million in discretionary funds for a broader range of projects statewide, ensuring that critical infrastructure needs can be met regardless of a county's oil production status.

Additionally, the meeting addressed the distribution of $159.1 million in political subdivision grants, with $34 million earmarked for cities, similar to previous allocations under the Prairie Dog funding initiative. This funding is intended to support various infrastructure projects, with an emphasis on grants rather than direct distributions to ensure that funds are directed to the most pressing needs.

The committee discussed the importance of allowing local governments, including townships and counties, to apply for these grants. The application process is designed to be accessible, even for smaller communities that may lack full-time staff. The DOT has established a scoring committee that includes representatives from local governments to evaluate grant applications, ensuring that funding is allocated based on project needs rather than administrative capacity.

In conclusion, the meeting underscored the state's commitment to addressing infrastructure challenges through flexible funding mechanisms. The proposed changes aim to empower local governments to tackle their specific needs effectively, fostering a more equitable distribution of resources across North Dakota. Further discussions will continue as the committee finalizes the criteria and allocations for the upcoming biennium.