Transportation Economic Development Fund (TEDF) – Category a - Economic Development Road Projects

The Transportation Economic Development Fund (TEDF) Category A - Economic Development Road Projects program provides supplemental state funding to road agencies to address immediate economic development demands placed on highways, roads, and streets. The program's goals are to improve the network of highway services essential to economic competitiveness, enhance accessibility to targeted industries as a catalyst for economic growth, and support private initiatives that create or retain permanent jobs in Michigan. Funding is targeted toward projects that maximize development or redevelopment potential, reduce transportation user costs, and leverage non-TEDF funding partnerships.

Eligible recipients include MDOT, county road commissions, and cities and villages eligible to receive Act 51 funds. Other entities, including townships, private developers, and economic development corporations, cannot apply directly and must partner with an eligible Act 51 road agency. The applicant road agency must certify legal and physical possession of required rights-of-way, agree to maintain the improved facility, and ensure that the roadway is open to commercial truck traffic year-round without seasonal weight restrictions.

Proposed transportation projects must resolve a specific need related to capacity, condition, safety, or accessibility that directly supports an immediate, non-speculative private economic development. The associated private development must create or retain permanent jobs within the first three years (retained jobs must be at immediate risk of layoff or out-of-state transfer if the road improvement is not made), increase the local tax base for local government applicants, and involve active location or retention negotiations. Eligible developments must belong to designated target industries: agriculture or food processing; forestry; tourism (acting as the primary visitor draw); high-technology research; manufacturing; mining; office centers of at least 50,000 square feet with at least 50 percent tenant commitment; or medical research/medical tourism facilities of at least 50,000 square feet. All non-transportation infrastructure (water, sewer, drainage, power) must be existing or committed.

Applications are accepted on a continuous, year-round basis through the online MDOT Grant System (MGS). The application process begins with the submission of a Letter of Interest (LOI) in MGS, which MDOT reviews within 10 days. If the project meets initial eligibility requirements, the applicant is invited to submit a full application including detailed descriptions, cross-sections, plan view sketches, location maps, a detailed engineer's estimate of probable construction costs, local governing body resolutions of support, third-party evidence of financial viability, and signed Development Forms from each benefiting company. Applications are evaluated approximately five times per year by MDOT's Relative Transportation Need (RTN) Committee based on economic models, engineering reviews, and project criticality. Grant recommendations are submitted to the MDOT Director and the President and CEO of the Michigan Economic Development Corporation (MEDC) for final approval. Awarded projects must initiate construction contracts within two years of grant approval.