Carbon Reduction Program Funds Available
By: Elisa Bottos, State Aid Project Delivery Engineer
The federal Infrastructure and Investment Jobs Act (IIJA) created a new formula program called the Carbon Reduction Program. The purpose of the program is to reduce carbon dioxide emissions from on-road highway sources. The Carbon Reduction Program provides Minnesota with approximately $20.9 million annually over five years to fund projects that reduce carbon emissions from surface transportation. Program funding is distributed across the state with funds allocated proportionally based on population. MPOs and ATPs will be soliciting for projects for funding in Fiscal Years 2027 and 2028 this fall. Types of projects eligible are Low Carbon Infrastructure and System Management, Electrification, and Travel Options. To see more information about each of the types of projects, please click the following info sheets which include eligible projects and examples of projects funded.