Transportation Economic Development Fund (TEDF) - Category A - Economic Development Road Projects

Goal/purpose: Category A of Michigan's Transportation Economic Development Fund (TEDF) invests in public road projects that support job creation and retention, improve statewide economic competitiveness, and enhance quality of life. Funding targets transportation improvements that improve the network of highway services, enhance accessibility to target industries, support private investment that creates or retains jobs, and encourage redevelopment that benefits health, safety, and welfare. Additional applicant eligibility criteria: Eligible recipients are MDOT, county road agencies, and city/village street agencies eligible for Act 51 funds. The underlying development must be immediate and non-speculative; it must create or retain permanent jobs and, for local applicants, increase the local tax base. The transportation need must be demonstrated in capacity, condition, safety, or accessibility, and the development must be in a target industry (agriculture/food processing, tourism, forestry, high-technology research, manufacturing, mining, office centers of at least 50,000 sq ft with 50% tenant commitment, or medical research/medical tourism facilities of at least 50,000 sq ft). Non-transportation infrastructure (fire protection, water, sewer, drainage, gas, electric) must be available, underway, or committed. Project eligibility: Category A funds participate in eligible construction costs of public road projects necessary for the development; planning/design and right-of-way can be used as match but are not typically funded by Category A. Examples of non-participating items generally include stand-alone utilities, drainage beyond roadway needs, sidewalks/trails, streetlighting, landscaping, and work outside project limits (unless displaced by the road project). Application process: Applicants submit a Letter of Interest (LOI) through the MDOT Grant System; MDOT responds within 10 business days. Complete applications are due seven weeks before a Relative Transportation Need (RTN) Committee meeting. Applications are accepted year-round and scheduled into one of several RTN review cycles each fiscal year. For FY 2026, the planning guide shows multiple cycles; the last complete-application due date is 11/25/2026, with the final tentative award date of 03/10/2027. Awards are recommended by MDOT's Office of Economic Development and approved by the MDOT Director and the MEDC President/CEO.