The Future of Infrastructure Grants: How New Policies Could Impact Funding

As implementation of the Bipartisan Infrastructure Law (BIL) and the Infrastructure Investment and Jobs Act (IIJA) continues into 2025, federal infrastructure funding remains a national priority – fueling everything from transportation and broadband to clean energy and water systems. But with evolving guidance, tighter procurement requirements, and new compliance expectations, how these dollars are awarded, managed, and monitored is beginning to shift.

With billions still available for obligation—and growing pressure to demonstrate measurable outcomes, grant professionals must stay agile. Understanding the operational, legal, and compliance requirements of infrastructure programs is critical, especially when it comes to construction, capital projects, and public-private partnerships.

Key Shifts That May Impact Infrastructure Funding in 2025

Funding Priorities Are Sharpening

At the start, BIL and IIJA generated broad eligibility across sectors. Now, agencies are narrowing their focus to meet outcomes and looming deadlines. For example:

Transportation grants are increasingly tied to climate resilience and multimodal innovation.
Broadband programs are zeroing in on underserved areas with enforceable performance metrics.
Energy initiatives are prioritizing sustainability, domestic sourcing, and community engagement.

Expect reduced enthusiasm for projects that don’t align with core strategic goals—particularly as unspent funds are reevaluated in a shifting political environment.

Procurement & Construction Compliance Are in the Spotlight

Construction-related grants face complex requirements—and scrutiny is intensifying:

Buy America/Build America (BABA): New OMB and agency guidance means tighter documentation on domestic sourcing of materials and manufactured goods.
Davis-Bacon Act: Enforcement of prevailing wages and contractor oversight is ramping up.
Environmental Reviews: For capital projects, enhanced expectations under NEPA now include community impact assessments and environmental documentation.

These aren’t just technicalities – they directly affect eligibility, drawdowns, and audit risk.

Shifting Application Expectations & Risk Reviews

Infrastructure grants now often include risk-based evaluations during both award and post-award phases. Be ready for:

Pre-award documentation requests, such as procurement policy reviews and internal control assessments.
Construction readiness checks, including permit status, budget alignment, and matching fund confirmation.
Equity and community engagement plans that reflect federal goals around inclusive development.

What Grant Professionals Should Do Next

Evaluate Internal Capacity & Controls

Construction grants bring unique compliance challenges. Organizations should:

Review procurement policies for alignment with federal rules.
Assess staff capacity for managing construction timelines and reporting.
Establish documentation processes for BABA compliance.

Strengthen Partnerships & Planning

Strong infrastructure applications often rely on collaboration. Consider:

MOUs with local and regional partners.
Engaging engineering, legal, and compliance advisors early.
Building risk assessments into planning—not just post-award.

Track Evolving Guidance

Track updates from:

OMB for infrastructure-specific memos and Uniform Guidance adjustments.
Federal agencies such as DOT, DOE, EPA, USDA, and NTIA for evolving BIL requirements.
SAM.gov and Grants.gov for revised instructions and funding forecasts.

Final Thoughts: Proactive Planning = Competitive Advantage

In the future of infrastructure funding, it won’t just be about how much money is available—but who’s most prepared to manage it.

Whether you’re applying for your first infrastructure grant or managing a complex capital project, now is the time to:

Revisit your internal processes,
Build out a cross-functional planning team, and
Stay on top of shifting compliance requirements.

Grant professionals who take these proactive steps will not only reduce audit risk—they’ll be positioned to lead meaningful, community-centered projects that align with federal expectations.

We’d love to hear from you. Reach out at [email protected].

The Future of Infrastructure Grants: How New Policies Could Impact Funding