Federal funds improving transportation in California
Through the Infrastructure Investment and Jobs Act (IIJA), California will receive federal infrastructure funding based on formula and discretionary grants. Formula is guaranteed funding based on statutory formulas, whereas discretionary grants are awarded to states or projects through a competitive selection process. Based on formula funding alone, the IIJA will bring California an estimated $41.9 billion over 5 years from Federal Fiscal Year (FFY) 2022 through FFY 2026.
Jobs created are assessed based on 13,000 jobs per $1 billion invested. For more information on the employment impacts of highway infrastructure, visit the Federal Highway Administration (FHWA), Employment Impacts of Highway Infrastructure Investment.
Updated September 25, 2023
Investments in disadvantaged communities
Through the Justice40 Initiative, the Federal Government has made it a goal that 40 percent of the overall benefits of certain federal investments, like IIJA, flow to disadvantaged communities that are marginalized, underserved, and overburdened by pollution. To learn more about IIJA funding in disadvantaged communities, and how Active Transportation projects have already served California for years, view the Disadvantaged communities page.
Disadvantaged Business Enterprise
Caltrans has three distinct programs to assist small businesses to compete more effectively for its contracting and procurement dollars: Small Business (SB), Disabled Veteran Business Enterprise (DVBE), and Disadvantaged Business Enterprise (DBE).
Infrastructure Investment and Jobs Act (IIJA) funding for the DBE program will remedy ongoing discrimination and the continuing effects of past discrimination in federally-assisted highway, transit, airport, and highway safety financial assistance transportation contracting markets nationwide.
The DBE program's primary remedial goal and objective is to level the playing field by providing small businesses owned and controlled by socially and economically disadvantaged individuals a fair opportunity to compete for federally funded transportation contracts. To learn more, visit the DBE Program on the U.S. Department of Transportation website.
From October 1, 2023 through December 31, 2023, Caltrans has awarded 21.49 percent of contracts to Disadvantaged Business Enterprise. The goal for FFY 2022-2024 is 22.2 percent.
Caltrans has had similar success with state-funded Small Business and Disabled Veteran Business Enterprise programs. For more information, check SB 1 by the numbers.