URBAN INSTITUTE
By Amanda Hermans, Tomi Rajninger
May 6, 2024
Each year, federal agencies decide how to distribute billions of infrastructure dollars across the US through competitive funding programs. To receive funding, however, local governments must first apply. This process is often time-consuming and difficult to navigate because application criteria vary for each grant program.
At the same time, many federal agencies have begun to better align their funding streams with the administration’s equity goals by developing equity plans, distributing grants to historically disinvested communities, and providing application assistance to communities in need. Still, Urban Institute research has shown that counties with more resources per capita tend to win more grant dollars. A small survey of municipalities across the US also has suggested that a city’s ability to apply for infrastructure funds and implement the projects depends on its administrative capacity and budget.
In a new analysis of the relationship between local capacity and the likelihood a community wins competitive grants, we find that grants are more often distributed to counties with higher staffing levels and higher budgets per capita. Well-resourced municipalities are also more likely to win larger awards from federal infrastructure programs. To avoid reinforcing inequities when distributing federal awards—such as the hundreds of billions of dollars for road improvements, public transit, and energy efficiency being distributed under the Infrastructure Investment and Jobs Act (IIJA)—federal agencies could provide more support to communities with fewer resources.
View the full article: Urban.org