BIT3 Grant: 100% Federal Funding for County Type 3 Bridges (FY 2026)

The Federal Highway Administration's (FHWA) Type 3 Highway Bridge Replacement and Rehabilitation (BIT3) Competitive Grant Program is a brand-new FY 2026 program offering a rare deal for the counties that qualify: 100% federal funding, with no local match required, to replace or rehabilitate aging county-owned bridges that cross Bureau of Reclamation water infrastructure. The Consolidated Appropriations Act, 2026 provided $25 million in total program funding, and there is no per-project award ceiling.

What Is the BIT3 Program?

The BIT3 Competitive Grant Program funds the replacement or rehabilitation of county-owned bridges that are classified as "Type 3" bridges by the U.S. Department of the Interior's Bureau of Reclamation (USBR) and that cross a water conveyance structure owned by USBR. These are bridges that carry public roads over Reclamation-owned infrastructure such as dams, spillways, and canals across the 17 Western Reclamation states.

Many of these crossings were built decades ago and now carry traffic loads and safety expectations they were never designed for. Because the underlying water structure is federally owned but the bridge itself is a county responsibility, these assets often fall into a funding gap. BIT3 is designed to close that gap with dedicated, fully federal funding.

Who Can Apply?

Eligibility for BIT3 is narrow and specific. Only counties are eligible to apply directly. To qualify, you must be:

• A county (the bridge owner), and
• The owner of a bridge that is classified as Type 3 by the Bureau of Reclamation, and
• That bridge must cross a water conveyance structure owned by USBR (water conveyance structures for this NOFO include dams, spillways, and canals), and
• The project must be eligible under the Federal Lands Access Program (FLAP) (23 U.S.C. § 204).

USBR structures, facilities, and lands are located in the 17 Western Reclamation states: Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming.

Successful applicant counties may, under 23 U.S.C. § 204(a)(2), arrange to administer their grant awards through the State DOT in which the county is located. If a non-State DOT applicant will use Federal-aid formula funds apportioned to a State DOT as part of the total project budget, the application must also include a supporting letter from the State DOT agreeing to administer the project, with the applicant serving as sub-recipient.

What Is a "Type 3" Bridge?

The Bureau of Reclamation defines a Type 3 bridge as any non-USBR-owned bridge over 20 feet in length (or a bridge-like structure between 6 and 20 feet) that crosses a USBR dam, associated facility, power facility, or land interest (per Reclamation Manual Directives and Standards FAC 07-01). If you are unsure whether your bridge carries this classification, the program contact at BIT3@dot.gov can help you confirm.

Funding Structure: 100% Federal Share, No Per-Project Cap

The headline feature of BIT3 is its cost share. Unlike most federal transportation grants, which require a 20% non-federal match, the BIT3 Competitive Grant Program requires no minimum cost share. The federal share is 100 percent of the funds requested for the eligible project scope. Applicants using other federal funds in conjunction with BIT3 funds must still comply with the cost-sharing requirements of those other federal sources.

The NOFO also clarifies that there is no minimum or maximum award amount. Instead, FHWA aims to fully fund as many projects as the $25M total allows. After fully funding selected applications, DOT will fund remaining applications at scalable amounts until available funds are fully utilized. For this reason, applicants are encouraged to include scalable project options in their applications — an "all or part" approach increases the chance of being funded at some level.

Cost-Reimbursable Grant

BIT3 grants are administered as cost-reimbursable grant agreements. Funds reimburse recipients only for costs incurred after execution of the grant agreement that DOT determines to be allowable, reasonable, and allocable under 2 CFR Part 200. Pre-award costs are ineligible for reimbursement and ineligible as cost share, unless DOT authorizes them in writing after award announcement.

Application Limits, Bundling, and Format

A few practical points often missed:

• No limit on the number of applications a county may submit. If submitting more than one, indicate the funding priority of each on the application cover page (DOT is not required to follow the applicant's priority).
• Bundling is allowed — multiple eligible bridges and bridge-like structures may be combined into one application, provided they cross the same water conveyance structure in the same general location.
• The BIT3 Application Template is limited to 20 pages (not including attachments).
• Files should be single-spaced, 12-point standard font (e.g., Times New Roman), with 1-inch margins, submitted in PDF unless otherwise specified.
• This program is not subject to E.O. 12372 Intergovernmental Review — no SPOC review is required.

How Applications Are Evaluated: The Three Merit Criteria

BIT3 applications are evaluated against three merit criteria. Each criterion receives a rating of Highly Responsive, Responsive, or Non-Responsive, based on objectives described in the NOFO. Building the narrative to hit each criterion's objectives is the single most important part of the application.

Criterion 1: Bridge Condition

The application must include quantifiable data documenting (A) the severity of the bridge's deterioration and how the project addresses specific safety/reliability problems; or (B) need for rehab/replacement due to a current or future water-conveyance capacity improvement project. It should also (C) describe how the project follows modern engineering standards for a long-term state of good repair, and ideally (D) document use of innovative materials or construction techniques. Highly Responsive applications meet A, C, and D; or B, C, and D.

Criterion 2: Water Delivery

The application must describe with data how the project (A) protects water conveyance through the structure for reliable USBR water delivery; (B) accommodates current or future water conveyance capacity improvements (e.g., greater span/length); and (C) supports USBR's mission — either by reinvesting in American families through water delivery to households and irrigation water to farmers, or by supporting economic competitiveness through regional commerce. Highly Responsive applications meet A, B, and C.

Criterion 3: Safe, Efficient, and Reliable Movement of People and Goods

The application must describe how the project (A) improves safety for the traveling public, (B) improves traffic flow and reduces congestion, (C) enhances daily-user reliability through access to emergency routes, major destinations, and access points, and (D) supports regional commerce and economic competitiveness. Highly Responsive applications meet all four; Responsive applications meet at least two.

Overall Merit Rating

• High: At least two of the three criteria rated Highly Responsive; all others at least Responsive.
• Medium: All criteria at least Responsive; not High.
• Low: Any criterion rated Non-Responsive.

Project Readiness Assessment

Eligible applications receiving a Medium or High merit rating proceed to the Project Readiness Assessment, which scores three dimensions:

Technical Assessment (Certain / Somewhat Certain / Unknown)

Evaluates the applicant's capacity to deliver the project: technical and staffing resources, compliance with federal requirements, commitment to timely delivery as shown by the schedule, and technical feasibility.

Financial Completeness Assessment (Complete / Partially Complete / Incomplete)

Evaluates the budget package: complete funding estimates based on recent design stages, a plan to address potential cost overruns, and how future operation, maintenance, and preservation costs will be funded.

Permitting Risk Assessment (Low / Moderate / High Risk)

Evaluates the status of environmental approvals: completion or schedule for NEPA review, permit status, public engagement, and any unmitigated risks (open litigation, public controversy, agency opposition on environmental grounds).

The combined ratings produce an Overall Readiness Rating of High, Medium, or Low. From there, FHWA assigns each application an overall rating of Highly Recommended, Recommended, or Not Recommended.

FY 2026 DOT Priority Considerations

Among similarly rated applications, DOT may prioritize projects based on:

• A high readiness rating
• A high merit criteria rating
• Projects that decrease roadway traffic congestion and freight bottlenecks without proposing limits on roadway capacity for motor vehicles or creating artificial chokepoints for motor vehicles
• Projects using technology and innovative approaches to detect, mitigate, and document safety risks and bridge conditions

The NOFO also frames FY 2026 selections around Administration priorities including Core Infrastructure, Reinvesting in the American Family, Supporting Economic Competitiveness, and Promoting Innovation, and applies principles from DOT Order 2100.7 (Sound Economic Analysis) and DOT Order 2100.9 (Nondiscrimination and Equal Opportunity).

Review and Selection Process

Applications move through a multi-step review:

1. Intake and Eligibility Review — FHWA confirms applications are complete and meet Section B eligibility.
2. Technical Review Team (TRT) — DOT staff and USBR representatives evaluate against merit criteria and project readiness.
3. Senior Review Team (SRT) — officials from the Office of the Secretary of Transportation and FHWA leadership determine which projects advance.
4. Final selection by DOT leadership.

Because the federal share is 100% of eligible costs, the Department will fully fund as many selections as possible at full requested amounts, then fund remaining selections at reduced scalable amounts. Unsuccessful applicants may request a debriefing up to 90 days after selections are announced by emailing BIT3@dot.gov.

How to Apply

Before you submit, your county must have the standard federal registrations in place. These can take several weeks, so start early:

• An active SAM.gov registration
• A valid Unique Entity Identifier (UEI)
• A Grants.gov account for your organization

The application package, accessible via Grants.gov under Opportunity Number FHWA-BIT3-26-001, includes:

• SF-424 (Application for Federal Assistance)
• SF-424C (Budget Information for Construction Projects)
• Grants.gov Lobbying Form (Certification Regarding Lobbying)
• SF-424D (Assurances for Construction Programs)
• SF-LLL (Disclosure of Lobbying Activities)
• The BIT3 Competitive Grant Program Application Template, attached to Item 15 of the SF-424

Post-Award Requirements

Reporting

Recipients submit semi-annual progress reports and semi-annual Federal Financial Reports (SF-425). FHWA will work with each recipient to select at least two performance measures tied to the statutory BIT3 goals and the FY 2026 selection criteria. DOT may request additional financial information and periodic project inspections.

Buy America

Funds are subject to FHWA's steel, iron, and manufactured product domestic requirements (23 U.S.C. § 313 and 23 CFR 635.410) and the construction materials domestic preference (Pub. L. No. 117-58, div. G §§ 70901–70927, implemented at 2 CFR Part 184). Plan your specifications and sourcing accordingly.

Federal Anti-Discrimination Certification

Per E.O. 14173, as a condition of award (except where prohibited by court order), each recipient must certify that it does not operate any programs promoting diversity, equity, and inclusion initiatives that violate applicable federal anti-discrimination laws, and must agree that compliance with federal anti-discrimination laws is material to the Government's payment decisions under 31 U.S.C. § 3729(b)(4).

Critical Infrastructure Security & Cybersecurity

Before signing the grant agreement, selected applicants must demonstrate consideration of physical and cyber security risks relevant to the transportation mode and project type, consistent with National Security Memorandum 22.

Tips for a Strong BIT3 Application

1. Anchor Each Merit Criterion Section in the NOFO's Specific Objectives

Don't write generic "this is a needed project" prose. Walk through Bridge Condition (objectives A–D), Water Delivery (A–C), and Safe/Efficient/Reliable Movement (A–D) with quantifiable data and explicit responses to each lettered objective. Reviewers are scoring against those exact objectives.

2. Include a Scalable Project Option

Because DOT will fund remaining selections at reduced scalable amounts after fully funding top projects, presenting a credible "phase 1" or reduced-scope option materially increases your chances of being funded at some level.

3. Confirm Type 3 Classification Up Front

If your bridge isn't already officially classified as Type 3 by USBR, contact your local USBR office and the BIT3 program contact before investing in a full application. Bundling multiple bridges? Confirm they all cross the same water conveyance in the same general location.

4. Take the Readiness Assessment Seriously

Strong applications show completed or near-complete NEPA, secured permits, finalized cost estimates, an honest cost-overrun plan, and an O&M funding plan. Disclose any litigation or known public controversy honestly — the assessment penalizes undisclosed risks more than disclosed ones.

5. Tell the Water and Mobility Story Together

BIT3 is unusual in that it cares about both the road-user experience and the underlying water delivery system. Strong applications integrate the two stories rather than treating Water Delivery as a side note.

Contact Information

• Program Email: BIT3@dot.gov
• Mailing Address: Federal Highway Administration, Office of Administration, 1200 New Jersey Avenue SE, Mail Stop E65-103, Washington, D.C. 20590, Attn: Veronica Jacobson
• FHWA Federal Lands: highways.dot.gov/federal-lands

How Avila Can Help

BIT3 rewards applicants who can quickly determine whether they qualify, build a tightly focused application against three specific merit criteria with quantifiable data, and document readiness across technical, financial, and permitting dimensions. For county public works staff who rarely write federal grants, that combination of eligibility analysis, narrative development, and readiness documentation is a heavy lift.

Avila's AI-powered platform helps local governments streamline the grant application process by:

• Analyzing the NOFO to surface eligibility conditions and the three merit criteria
• Helping draft narratives that hit each criterion's specific objectives
• Tracking deadlines and required registrations
• Managing the full grant lifecycle from discovery to closeout

Ready to explore how Avila can support your BIT3 application? Book a demo to learn more.

For more on federal grant applications, see our guides on federal grant writing, SAM.gov registration, and Grants.gov registration. For other infrastructure funding, explore our guides to the Culvert AOP Program and the Nationally Significant Federal Lands and Tribal Projects Program.