PolicyBrief
H.R. 502
119th CongressJan 16th 2025
Protecting Infrastructure Investments for Rural America Act
IN COMMITTEE

The "Protecting Infrastructure Investments for Rural America Act" amends the Rural Surface Transportation Grant Program to prioritize infrastructure projects in rural areas and small communities with populations of 30,000 or less, setting aside a minimum of 5% of funds for communities of 5,000 or less. It broadens eligible projects to include those enhancing economic development and quality of life, with the federal share of project costs potentially reaching up to 90% in small communities.

Brad Finstad
R

Brad Finstad

Representative

MN-1

LEGISLATION

Rural Roads and Bridges Get a Boost: New Bill Prioritizes Small Towns, Caps Federal Share at 90%

This bill, straight-up named the "Protecting Infrastructure Investments for Rural America Act," reshapes the existing Rural Surface Transportation Grant Program. Basically, it's funneling more resources to even smaller communities, focusing on projects that boost local economies and improve daily life.

Small Towns, Big Changes

The core change here is who qualifies for these grants. Previously, the program targeted areas with populations over 200,000. Now, it's all about areas with 30,000 or fewer residents. Plus, there's a new "small community" category, specifically for areas outside city limits with 5,000 people or less (SEC. 2). Think upgrading that bumpy road that leads to the local farm, or fixing the bridge everyone uses to get to the town's main street.

Real-World Rollout

So, what does this mean on the ground? Imagine a small farming community where the main road to the nearest market is in dire need of repair. Under this bill, that project becomes a prime candidate for funding. It directly benefits the local economy by making it easier for farmers to transport goods, and it improves the quality of life for everyone who relies on that road (SEC. 2).

It's not just about patching potholes, though. The bill also includes projects like highway, road, bridge, or even tunnel construction, if they can show a clear benefit to economic development or the overall quality of life in these smaller communities. This could mean new routes that improve access to jobs, healthcare, or educational opportunities (SEC. 2).

Cash and Challenges

Here's the financial breakdown: For those newly defined "small communities", the federal government can cover up to 90% of a project's cost. That's a significant chunk of change, but it also means local authorities need to have some skin in the game (SEC. 2). A potential snag? That 90% federal share could tempt some towns to propose bigger, pricier projects than they actually need. It'll be crucial to have solid oversight to prevent that.

Also, at least 5% of the entire program's annual budget is now required to go to these small communities (SEC. 2). This ensures that the smallest towns aren't overlooked. The bill uses broad terms like "economic development" and "quality of life" – which is good for flexibility, but also means local projects will need clear justifications to ensure the money goes where it's truly needed.

Connecting the Dots

This bill builds on the existing Rural Surface Transportation Grant Program, tweaking it to focus more on the needs of truly small communities. While the existing program did good work, this narrows the focus, ensuring that even the smallest towns can compete for vital infrastructure funds. It's a recognition that rural America isn't just one big, homogenous block – and that the needs of a town of 3,000 can be vastly different from a larger rural area.