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Natural Gas Distribution Infrastructure Safety and Modernization Grant

General Grant Program Information

The Infrastructure Investment and Jobs Act (IIJA) was signed into law on November 15, 2021. The law created the Pipeline and Hazardous Materials Safety Administration's (PHMSA) first ever infrastructure grant program. The Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant program is designated $200 million a year in grant funding with a total of $1 billion in grant funding over five years. The grant funding is to be made available to a municipality or community owned utility (not including for-profit entities) to repair, rehabilitate, or replace its natural gas distribution pipeline systems or portions thereof, or to acquire equipment to (1) reduce incidents and fatalities and (2) to avoid economic losses.

Opportunity Status:
Open
Posted Date:
03/23/2026
Close Date:
05/22/2026
Eligible Applicants:
Local Governments; Federally Recognized Tribes and Affiliated Groups; Non-profit
Eligible Activities:
Construction; Equipment and Materials
Transportation Type:
Pipeline
Estimated Total Program Funding:
$98,000,000
Cost Sharing or Matching Requirement:
No
Match Waiver:
Yes
Rural Set-Aside:
No
Tribal Set-Aside:
No
Grant Opportunity ID:
693JK326NF0013
Agency:
USDOT / Pipeline and Hazardous Materials Safety Administration (PHMSA)

Eligibility Information

The NGDISM Grant Program is open to entities who operate a natural gas distribution system and include:

  • City, township, or county governments
  • Municipal utilities (owned by a local government)
  • Community-owned utilities (owned by the customers they serve)
  • Federally recognized Tribal governments

For-profit entities, or any pipeline assets owned by a for-profit entity, are not eligible for NGDISM grant funding. Installing or extending new natural gas capabilities are also not an eligible use of funds.

Funding Information

This program appropriates $200 million annually, of which up to two percent of the appropriations may be used for PHMSA’s administrative costs. PHMSA will make available up to $98 million utilizing FY 2026 funding for NGDISM grants under this NOFO. Any selections and awards under this NOFO are subject to the availability of appropriated NGDISM funds.

There is no award minimum amount.

Contact Information

For more information, contact PHMSAPipelineBILGrant@dot.gov.

Disclaimer:
The Dashboard provides users with a high-level overview of relevant Federal discretionary grant programs. The information in the Dashboard is maintained as a secondary resource and may not be updated with the most recent changes to each program's primary guidance materials. Accordingly, please refer to the Federal grant-making agency for the most comprehensive and up-to-date information on a grant opportunity in the Dashboard.