State Funding for IIJA Technical Assistance

The new state funded Infrastructure Investment and Jobs Act (IIJA) technical assistance application is now open and can be accessed at: https://www.dot.state.mn.us/stateaid/iija-state.html.

This program will provide state funds to grantees to hire consultants in helping to identify and ultimately apply for federal transportation-related discretionary grant opportunities. See below for more information.

In the 2023 legislative session (Chapter 68, Article 4 Section 110 and Article 1 Section 2 Subd. 5(a)), the legislature appropriated $2 million in general funds that is available for grants to townships, small cities, state aid cities, counties, and tribal governments to hire consultants to provide technical assistance in identifying and applying for transportation-related federal discretionary grants. Of this amount, at least 15% must be reserved for grants to tribal governments and at least 15% must be reserved for grants to small cities. Technical assistance grants may not exceed $30,000, and no more than one grant can be awarded to each local government in a calendar year. More than one grant may be awarded to a tribal government in a calendar year.

The following will be required by local agencies in accessing state funds for IIJA technical assistance.
• A state grant agreement will be required, which will generally follow the process outlined in the State fund grantee user guide (PDF).
• Grants to townships and small cities will require county sponsorship as documented in the state aid manual, Chapter 5.3, section X. At a minimum, the county will need to act as the fiscal agent, with funds flowing from MnDOT to the county to the small city/township.
• State Aid will assign a State Aid Project (SAP) number after the application is approved for funding.
• A force account agreement will need to be executed between MnDOT District State Aid and the grantee that documents consultant costs. This is required before the funding letter can be issued.
• After the SAP number has been assigned and the force account agreement has been executed, State Aid will issue a funding letter with further instructions.
○ Eligible consultant costs incurred after the date of the funding letter will ultimately be eligible for reimbursement, though payment cannot be made until a grant agreement is executed.
• A pre-award audit of the consultant, performed by MnDOT Audit, will be required before the grant agreement can be executed. State Aid staff will request the audit and will work with the grantee’s consultant as necessary.
• Finally, the grant agreement will be executed and the grantee can submit for eligible costs. Note that grant funds will be paid on a reimbursable basis.

Please contact Marc Briese (marc.briese@state.mn.us) or Elisa Bottos (elisa.bottos@state.mn.us) with questions.