Funding Shared Micromobility in the US: STBG

The Surface Transportation Block Grant Program (STBG), sometimes referred to as Surface Transportation Program (STP), is one of the most flexible federal transportation funding sources available, and shared micromobility projects are eligible. Understanding how this program works can help your community and systems secure critical funding for shared micromobility infrastructure and capital investments.

What is STBG?

STBG is a federal formula funding program administered by the Federal Highway Administration (FHWA) that provides flexible dollars for surface transportation projects. Unlike competitive grant programs where applicants compete for funds through a Notice of Funding Opportunity, STBG funds are distributed to states by a formula. States then suballocate a portion of these funds to Metropolitan Planning Organizations (MPOs) and local areas based on population.

The program provides billions annually for projects that preserve and improve highways, bridges, and public roads, as well as pedestrian and bicycle infrastructure and transit capital projects. STBG is quite flexible, and states and localities have significant discretion in using the funds to meet their transportation priorities.

How to Apply

Because STBG is a formula program rather than a competitive grant, there isn’t a single national application process. Instead, potential applicants must work through their state DOT or regional MPO to access funds:

• Contact your state DOT or MPO: Start by reaching out to your state’s transportation department or your regional MPO to understand their specific project selection process and timelines.
• Understand local priorities: Many MPOs and state DOTs run competitive calls for projects using their STBG allocation. Review your region’s long-range transportation plan and priorities to align your project accordingly.
• Follow regional processes: Application procedures, evaluation criteria, and deadlines vary significantly by state and region. Some hold annual calls for projects, while others have different cycles.
• Meet federal requirements: All STBG-funded projects must comply with federal requirements including environmental review, Buy America provisions for steel and iron, and other federal-aid highway program rules.

How Shared Micromobility Can Be Funded Through STBG

The Infrastructure Investment and Jobs Act (IIJA) marked a milestone for shared micromobility by explicitly including it in federal transportation law. Shared micromobility is now specifically eligible under STBG through two key pathways:

1. Direct STBG Eligibility: The IIJA added shared micromobility to Section 217 of Title 23, which covers bicycle and pedestrian projects. This means STBG funds can support both construction and non-construction shared micromobility projects, including:

• • Shared micromobility stations and docking infrastructure
  • System expansion capital costs
  • Integration with other transportation infrastructure
  • Equipment and technology for shared micromobility systems

2. Transportation Alternatives Program (TAP) Set-Aside: Ten percent of each state’s STBG allocation is set aside for Transportation Alternatives projects, which historically has been a major funding source for active transportation infrastructure. Shared micromobility projects are eligible under the TA set-aside, which saw a 70% funding increase under IIJA.

STBG’s flexibility and substantial funding levels make it one of the most important federal programs for supporting shared micromobility infrastructure. By understanding how to navigate the program and working with your state and regional partners, you can tap into this critical funding source to expand and enhance shared micromobility in your community.

You can find more information on STGB on the FHWA STBG Program Page and the IIJA STBG Fact Sheet.

What’s Next? 

Congress is currently engaged in discussions about the next Surface Transportation Reauthorization, which will determine funding levels and program structures for the next six years. These decisions will directly impact whether programs like STBG, CMAQ, BUILD and others are funded and what eligibility they include. It is important that lawmakers understand the impact that these funding streams have on residents and communities. NABSA has many tools and resources for members to engage in federal advocacy efforts, including a new US Congressional Look-Up Tool to help members reach out to lawmakers and our Federal Advocacy Toolkit, to help members plan and carry out effective advocacy efforts.