Carbon Reduction Program
Department Of Transportation, Federal Highway Administration
The Carbon Reduction Program (CRP) provides funds for projects designed to reduce transportation emissions, defined as carbon dioxide (CO2) emissions from on-road highway sources. This Assistance Listing 20.265 created in August 2025 was included in the previous ALN 20.205, please refer to former ALN 20.205 for FY24 and FY25 financial obligations. The new Assistance Listing 20.265 will be utilized by DOT at the start of FY 2026
Jargon-free version
Helps states fund projects that reduce carbon emissions from transportation. This includes things like electric vehicle charging stations and public transit improvements.
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What Is This Program?
What Benefits Are Offered?
Federal funding apportioned to US States to support projects reducing transportation emissions. Funds cover a federal share of project costs for public transportation, alternative fuel infrastructure, traffic management, energy-efficient street lighting, and carbon reduction strategy development, distributed to urbanized and rural areas within the State.
Who Is Eligible?
Region: US States, urbanized areas with population of at least 50,000, rural areas within a State
Other Criteria: Recipient is a US State, Funds must be made available to urbanized areas (population >= 50,000) based on relative population, Projects must support the reduction of transportation emissions, States must develop a carbon reduction strategy per 23 U.S.C. 175(d), Coordination with Metropolitan Planning Organizations (MPOs) and regional transportation planning organizations is required for project obligation
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📋What Are the Application Steps & Timeline?
- 📝Steps to Apply
- Develop a carbon reduction strategy in consultation with MPOs
- Submit the strategy for FHWA review and certification
- Obligate CRP funds for eligible projects
- 🌐Application Portal
- https://www.highways.dot.gov//iija/technical-assistance-local-support
- 📤Submission Method
- online
- 📅Key Dates
- Not later than 2 years after enactmentDevelop carbon reduction strategyAt least every four yearsUpdate carbon reduction strategy
- 🔄Intake Type
- fixed-deadline
📄What Documents Are Required?
- ✅Required Documents
- SF-424 (Application for Federal Assistance)
- SF-424A (Budget Information - Non-Construction)
- SF-424B (Assurances)
- Project Narrative
- Budget Narrative
- 📐Format Requirements
- PDF only, max 10MB
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💰What Expenses Are Eligible?
- 🧾Eligible Expenses
- projects designed to reduce transportation emissions
- traffic monitoring, management, and control facility
- public transportation projects
- construction, planning, and design of on-road and off-road trail facilities
- advanced transportation and congestion management technologies
- infrastructure-based intelligent transportation systems capital improvements
- energy-efficient street lighting and traffic control devices
- carbon reduction strategy development
- congestion pricing strategies
- deployment of alternative fuel vehicles
- publicly accessible electric vehicle charging infrastructure
- zero-emission construction equipment and vehicles
- diesel engine retrofit projects
- CMAQ-eligible projects that do not involve construction of new capacity
- projects that reduce transportation emissions at port facilities
- 💳Payment Model
- mixed
🤝Is Matching Funding Required?
- 🔀Matching Required
- Yes
- 📊Matching Ratio
- 50%
- 🏦Eligible Matching Sources
- cash
- in-kind
- 📚Stacking Rules
- States may transfer up to 50% of CRP funds to other programs.
- 🛡️Proof of Matching Required
- Documentation of matching funds is required as part of the project proposal.
📊What Are the Reporting Requirements?
- 🗓️Reporting Frequency
- annual
- 📑Reporting Requirements
- performance progress report
- 🔍Audit Requirements
- OMB Uniform Guidance Single Audit if the recipient expends $750,000 or more in federal awards
- 📢Branding Requirements
- Federal awarding agency acknowledgment required
- 🗄️Record Retention Period
- 3 years post-final-report
How Do I Apply?
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FAQFrequently Asked Questions
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Contact the program administrator for funding details.
This program accepts applications on a rolling basis.
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