In a bid to enhance air quality, reduce pollution, and address the climate crisis, President Joe Biden’s administration has unveiled the Low Carbon Transportation Materials Program, spearheaded by the Federal Highway Administration (FHWA).
This initiative, part of the broader Investing in America agenda, aims to curtail greenhouse gas emissions (GHG) by incentivizing the use of low carbon construction materials in transportation projects.
With an allocation of $2 billion from the Inflation Reduction Act, the program will provide reimbursement and incentive funding to entities such as state departments of transportation, tribes, metropolitan planning organizations, and other agencies.
These funds will support the procurement of materials like steel, concrete, and asphalt, which exhibit reduced carbon footprints.
Transportation Secretary Pete Buttigieg underscored the significance of this initiative, stating, “Transportation and industrial sectors make up about half of our economy’s emissions contributing to climate change – but today, the Biden-Harris Administration takes another important step to change that.”
Deputy Secretary of Transportation Polly Trottenberg emphasized the dual objective of environmental sustainability and economic prosperity, asserting, “The Biden-Harris Administration is working to deliver transportation to the American people that is both good for the environment and the economy, which means a better quality of life for everyone.”
FHWA is adopting a multifaceted approach to implement the program.
Initially, $1.2 billion will be distributed to states, the District of Columbia, and Puerto Rico through a Request for Applications (RFA). This avenue will enable the swift allocation of funds for activities and projects aimed at reducing pollution, including carbon emissions.
Subsequently, an additional $800 million will be earmarked for non-state applicants, including cities, Tribes, and Metropolitan Planning Organizations. This funding will be accessible through a Notice of Funding Opportunity (NOFO), encouraging collaborative efforts and offering technical assistance to applicants.
FHWA is using a hybrid approach to implement the program:
First, FHWA is making $1.2 billion available to states, the District of Columbia and Puerto Rico through a Request for Applications (RFA) to fund activities and projects that reduce pollution, including carbon emissions, through the use of low-embodied carbon materials and products.
This approach will allow FHWA to quickly provide reimbursement or incentive funds to states to begin eligible activities and incorporate low-embodied carbon materials on construction projects now.
Second, later this year FHWA will also make available $800 million to target non-state applicants, including cities, Tribes, Metropolitan Planning Organizations, and other agencies through a Notice of Funding Opportunity (NOFO). This funding opportunity will encourage applicants to partner with states where appropriate and will include offers of technical assistance for applicants.
“To achieve our goal of addressing climate change, we must encourage investment in more sustainable transportation,” said Federal Highway Administrator Shailen Bhatt. “The use of lower carbon materials, which match the durability of conventional materials while lowering pollution, is one pathway that will help us achieve President Biden’s goal of net zero emissions by 2050.”
Beyond financial support, the program will facilitate the quantification of emissions associated with construction materials and promote the adoption of lower carbon alternatives. It aligns with Biden’s broader climate agenda and complements existing FHWA initiatives aimed at mitigating the crisis.
The launch of the Low Carbon Transportation Materials Program marks a significant stride in the Biden administration’s commitment to environmental stewardship and underscores its proactive approach towards tackling climate change.

