Low-carbon Transportation Materials Grants (IRA Section 60506)

Low-carbon Transportation Materials Grants (IRA Section 60506) is sponsored by Federal Highway Administration (FHA). This program aims to reimburse or incentivize the use of low-emissions construction materials in projects related to federal-aid highways, tribal transportation facilities, federal lands transportation facilities, and federal lands access transportation facilities.

IRA Section 60506 - Low Carbon Transportation Materials Grants - Inflation Reduction Act Tracker Section 60506 of the IRA inserts a new section to Chapter 1 of Title 23 of the U.S. Code, 23 U. SC. § 179 , entitled “Low-carbon Transportation Materials Grants.

” The new section 179 appropriates $2 billion to the FHA Administrator to reimburse or incentivize the use of low-emissions construction materials identified by the Administrator in projects related to federal-aid highways, tribal transportation facilities, federal lands transportation facilities, and federal lands access transportation facilities. Eligible funding recipients include state, local, tribal, and territorial governments.

Reimbursements under section 179 shall cover the difference in cost between conventional materials and low-emissions materials, while incentives shall be two percent of the cost of using low-emissions materials. Funds provided under section 179 may not be used on projects that create additional through travel lanes for single-occupant passenger vehicles. The appropriated funds will remain available until September 30, 2026.

State/Territorial Government, Local Government Funds Rescinded by Congress Section 60024 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) rescinded unobligated funds under this IRA provision.

Trump Administration Actions: Congress Passes Budget Bill, Rescinding Funds and Repealing IRA Programs and Tax Credits [07/03/2025] Senate Parliamentarian Advises Several Provisions in Republicans’ “One Big, Beautiful Bill” Are Not Permissible, Subject to Byrd Rule [06/19/2025] Senate Environment Committee Releases Budget Reconciliation Draft Text [06/16/2025] House Committee on Transportation and Infrastructure Proposes IRA Rollbacks [04/29/2025] DOT Shutters Information Hub for Climate Funding [02/28/2025] OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025] OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025] Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025] Implementation Status at End of Biden Administration: Section 60506 appropriates $2 billion to the FHA Administrator to reimburse or incentivize the use of low-emissions construction materials identified by the Administrator in projects related to federal-aid highways, tribal transportation facilities, federal lands transportation facilities, and federal lands access transportation facilities to be used by September 30, 2026.

In November 2024, DOT awarded $1. 2 billion to 39 State Departments of Transportation under the Low Carbon Transportation Materials Discretionary Grant Program. The additional $800 million in grant money has not been awarded.

This funding will support continued growth in clean manufacturing and creating jobs while reducing pollution from the production of concrete, steel, and other bedrock materials. Biden Administration Actions: DOT Awards $1. 2 Billion in Grants to Help State Departments of Transportation Utilize Cleaner Construction Materials [11/14/2024] DOT Opens Applications for $1.

2 Billion in Funding to Reduce Transportation Sector Air Pollution [03/12/2024] White House Releases IRA Guidebook for Tribes [04/04/2023] In Sierra Club v.

DOT (filed July 24, 2025), the Sierra Club sued DOT for violating the Freedom of Information Act by failing to produce records related to the agency’s freeze of federal funding for the IRA’s Low-Carbon Transportation Materials program and two Infrastructure Investment and Jobs Act programs. On December 3, DOT filed its answer.