Signed into law on May 19, 2023, SB 536 provides much-needed funding to local governments for the maintenance of county, city, and town roads. SB 536 transfers $100 million to the Montana Department of Transportation (MDT) for distribution:

  1. Funding or providing the state matching source for the reconstruction and repair of:
    • off-system bridges;
    • secondary highway system routes;
    • urban highway system routes; or
  2. Providing a state matching source, at MDT’s discretion, for road and bridge repair or reconstruction discretionary grants awarded to local governments.

An amount of $20 million must be distributed to incorporated cities and towns with a population of less than 10,000 by September 1, 2023.

allocation of funds

Intent: MDT intends to utilize this funding primarily to address the growing concern of deteriorating and load-posted off-system bridges. Recognizing the increased availability of numerous new discretionary grant programs, a portion of SB 536 funding was allocated to enable local officials to leverage additional federal and state funding opportunities, and to deliver immediate and cost-effective state-funded solutions as needed.

Allocation: MDT has allocated SB 536 funding in the following way:

  • Direct allocation to local governments ($20,000,000 per provisions of SB 536)
  • County administered off-system bridge “quick fixes” ($20,000,000)
  • Local match for discretionary grants ($16,000,000)
  • MDT administered off-system bridge projects/match ($44,000,000)

Click on the allocation areas below to learn more!

SB 536 provisions require this distribution to cities and towns with populations of less than 10,000 in the following manner:

  • 50% based on the pro-rata of the city and town street and alley mileage.
  • 50% based on the pro-rata share of the city and town population.

Eligible funding uses include the construction, reconstruction, maintenance, and repair of city or town streets and alleys and funds may not be used for capital equipment purchases.

Payments will be made in August 2023. MDT Direct Allocations to Local Governments.

SB 536 funding will be directly allocated to counties where off-system bridges have been identified for repair or replacement and it is determined to be more cost-effective and quicker to use state funds rather than federal aid. 42 bridges have been identified to date for quick fix repairs with a total estimated cost of $3,000,000. Remaining funding will be used to address emerging repair issues or for bridge replacements. MDT’s goal is to distribute funds by April 2024, if counties elect to use SB 536 funding.

SB 536 allows MDT the discretion of using this funding as a matching source for federal or state grants awarded directly to local governments.

MDT initially made $11 million in SB 536 funding available to local governments to request assistance in matching discretionary grants received at the local level for road and bridge projects. Because of strong demand, MDT has set aside an additional $5 million to match local discretionary grants. This additional $5 million is available for request beginning April 22, 2024.

New eligibility criteria for the additional $5 million in funding are:

  • Funding requests must be for road or bridge repair/construction projects administered by a local government, and distribution will occur on a first come, first served basis.
  • Maximum SB 536 match contribution is $1 million for any one project and each local government is limited to one SB 536 funding award. This limit also applies to a grant application with joint applicants and counts as an award to each local government.
    • o Successful applicants from Round 1 (the initial $11 million) may submit a second grant match request from Round 2 ($5 million) funding.
  • SB 536 match support requests must be for federal discretionary grants.
  • Match commitments for grant applications that are unsuccessful will be returned to the funding pool and will be available for other projects/applicants. Unsuccessful applicants can submit another project for consideration if funding is still available.
  • Funds will be distributed as a lump sum and cost increases will be borne by the local government.
  • The balance of this $16 million in SB 536 local match funding will be evaluated in March 2025, to determine the continuation of the program. Remaining funds may be reallocated to one of the other programs.

Application process:

  • Grant requests must be submitted through MDT’s online form.
  • Requests for matching funds are due no later than 3 weeks prior to grant deadline.
  • Please include the following information in each request:
    • Sufficient information to clearly describe the project scope, purpose, and need for the project (relate to SB 536 eligibility criteria as appropriate).
    • Brief description on how the project meets grant eligibility requirements.
    • Project location
    • Federal discretionary grant program name
    • Total project cost, including the non-federal match requirement and match ratio; local funding commitment to the project; and amount of SB 536 funding requested.
  • MDT will attempt to respond within 1 week (7 days) of request receipt.

This allocation of SB 536 funds will be administered by MDT for off-system bridge projects as prioritized by MDT and MACo consistent with the Off System Bridge Study and Strategic Plan.

Where feasible, projects will be delivered based on federal specifications and matched with SB 536 funds. This allows MDT to leverage 80% of the construction costs for federal match on future bridge projects. The primary focus is on large, bundled bridge projects or similar types of projects. MDT will maximize HB 267 (SAFER Act) funding for the match on discretionary grants received by the department, but SB 536 may be considered as an alternative source.