Carbon Reduction Program

The Infrastructure Investment and Jobs Act of 2021, also known as the Bipartisan Infrastructure Law, established the Carbon Reduction Program. Administered by the Federal Highway Administration, the program provides $6.4 billion in formula funding over five years for states to develop carbon reduction strategies and for projects to reduce transportation carbon dioxide emissions, including traffic management, public transportation, pedestrian facilities, alternative fuels, and port electrification. The Carbon Reduction Program is a formula program, meaning that federal funding is apportioned among the states and states have broad discretion over how they spend the funds. States are also able to transfer Carbon Reduction Program funds to other formula programs. You can contact your state DOT to engage with your state on spending Carbon Reduction Program funds and provide input into carbon reduction strategies. For contact information, see Transportation Contacts Near You.

Guidance, Tools, and Webinars

Funding by State

State Carbon Reduction Strategies

The Bipartisan Infrastructure Law (BIL) required each State to develop a State Carbon Reduction Strategy to support efforts to reduce carbon dioxide emissions from on-road highway sources. The strategies must be developed in consultation with metropolitan planning organizations (MPOs) in the state. They were due by November 15, 2023. The Federal Highway Administration reviewed and certified the strategies in February 2024. The strategies must be updated at least once every four years.

In order to help states learn from one another as they implement and revise their strategies, we have compiled notable practices from the state carbon reduction strategies in the document below.

Carbon Reduction Program

State Carbon Reduction Strategies

U.S. Department of Transportation

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