Multimodal Transportation Fund

The Multimodal Transportation Fund (MTF) Program is a state-run grant initiative administered by the Pennsylvania Department of Community and Economic Development (DCED) under the direction of the Commonwealth Financing Authority (CFA). Established by legislative authority in 2013, the program is designed to foster economic development while ensuring a safe and reliable transportation system across Pennsylvania. It provides financial assistance to a broad range of eligible entities, supporting transportation-related projects that enhance communities, improve public safety, and revitalize transit systems. The program accepts applications from municipalities, councils of governments, businesses, economic development organizations, public transportation agencies, and port operators. Eligible applicants must own and maintain the funded projects, with the exception of state-owned highways. Projects eligible for funding include improvements that coordinate land use with transportation assets, enhance pedestrian safety, improve connectivity of existing transportation systems, and promote transit-oriented development. The fund supports a wide array of project types such as rail service improvements, bicycle lanes, sidewalk enhancements, airport facility upgrades, and improvements to port operations. Eligible costs include land acquisition, construction, fixed equipment, land preparation, demolition related to the project, environmental assessments, and administrative costs (capped at 2% of the grant). Engineering and design costs related to construction projects are also eligible but capped at 10% of the grant award. Ineligible costs include parking not associated with transportation assets, security cameras outside of transit centers, financing fees, lobbying, and expenses incurred before grant approval. The grant program requires a local match of at least 30% of the non-federal project costs, although certain municipalities may be exempt from this requirement through the end of 2025. Grant awards range from a minimum of $100,000 to a maximum of $3,000,000. Applications are accepted annually between March 1 and July 31, with a $100 non-refundable application fee. Applications must be submitted through the DCED’s Electronic Single Application for Assistance platform. Evaluation criteria include the economic conditions of the project’s region, alignment with planning documents, public safety benefits, financial feasibility, level of matching funds, potential job creation, regional impact, project readiness, and the multimodal nature of the project. Upon approval, applicants must comply with prevailing wage laws, maintain project records, and provide certification of expenses. Grant funds are disbursed on at least a 30-day cycle, contingent upon certification by a licensed professional engineer. For program inquiries, applicants can contact the PA Department of Community and Economic Development, Center for Business Financing – Grants Office, at ra-dcedcbf@pa.gov or call (717) 787-6245. The mailing address is Commonwealth Keystone Building, 400 North Street, 4th Floor, Harrisburg, PA 17120-0225. The full guidelines and supplemental information requirements are outlined in the official program documentation dated February 2025.