DOT SMART Grants: Transportation Technology Funding 2026
Strengthening Mobility and Revolutionizing Transportation (SMART) Grants, established under the Infrastructure Investment and Jobs Act (IIJA, Public Law 117-58), support demonstration projects focused on advanced smart community technologies and intelligent transportation systems. As authorized under Section 25005 of the IIJA, the program was appropriated $100 million annually for fiscal years 2022 through 2026.
Two-Stage Funding Structure
Stage 1: Planning and Prototyping
Funding: Up to $2,000,000 per award
Duration: 18 months maximum
Purpose: Planning, prototyping, feasibility studies, initial demonstration, data collection framework development.
Eligibility: Open to any eligible public sector entity. No Stage 1 award required for Stage 2 eligibility in future rounds.
Status: Round 3 (December 2024) was the final Stage 1 round - 34 projects awarded $54 million across 21 states.
Stage 2: Implementation Grants
Funding: Up to $15,000,000 per award
Duration: 36 months maximum
Purpose: Full-scale implementation, technology deployment, system integration, comprehensive performance evaluation.
Eligibility: Recipients of Stage 1 grants expanding successful prototypes. In May 2025, Secretary Duffy approved 8 Stage 2 Implementation Grant awards totaling $85 million across the first round of Stage 2 funding.
FY 2026 Update: Congress passed H.R.7148 (Consolidated Appropriations Act, 2026), which reallocated $204,912,000 in unobligated SMART balances. No new Notices of Funding Opportunity will be issued. Existing SMART grant agreements, including 122 Stage 1 and 7 Stage 2 grants, continue to be honored.
Technology Focus Areas
Smart Technologies: Connected vehicle systems, advanced traffic management, smart parking solutions, autonomous vehicles, integrated mobility platforms, real-time data systems, sensor networks, communications infrastructure.
Community Benefits: Reduced congestion, improved safety, better air quality, enhanced accessibility, data-driven planning, resilient infrastructure.
Project Requirements
Innovation: Demonstrate new or advanced technology applications in transportation context.
Measurable Benefits: Show quantifiable improvements in safety, efficiency, or other performance metrics.
Data Sharing: Include comprehensive data collection plan and commitment to share results with DOT and broader transportation community.
Equity Focus: Address equity and accessibility considerations in project design and implementation.
Application Process
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Monitor transportation.gov/grants/SMART for Stage 2 Notice of Funding Opportunity (NOFO) announcements
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Attend pre-application webinar (optional but strongly recommended)
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Prepare application through Grants.gov (requires SAM.gov registration)
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Submit technical narrative, project plan, budget, and supporting documentation
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DOT conducts technical and merit review against published NOFO criteria (typically 6-9 months)
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Award announcements and project implementation period begins
Success Tips
Demonstrate Multi-Benefits: Strong applications show improvements across multiple dimensions - safety, efficiency, equity, environment, and accessibility.
Robust Data Plan: DOT prioritizes projects with comprehensive data collection, analysis, and sharing strategies. Plan to contribute to national learning.
Technology Partnerships: Partner with technology providers, universities, or research institutions to demonstrate technical feasibility and innovation.
Stage 1 Success: For Stage 2 applicants, clearly demonstrate Stage 1 prototype success with quantifiable results and lessons learned.
Contact Information
Website: transportation.gov/grants/SMART
Awarded Projects: transportation.gov/grants/smart/smart-awarded-projects
General DOT Grants: transportation.gov/grants
Related Federal Programs: See also EDA Grants for regional economic development, and NIST MEP for manufacturing technology support.
Common Questions
DOT SMART (Strengthening Mobility and Revolutionizing Transportation) Grants fund projects deploying innovative transportation technologies including AI-powered traffic management, connected vehicle systems, autonomous vehicle pilots, smart logistics platforms, and data-driven transit optimization. Eligible applicants include state and local governments, transit agencies, and metropolitan planning organizations, often in partnership with private technology companies.
Private companies cannot apply directly as the lead applicant, but they play a critical role as technology partners and subcontractors to eligible public entities. Many successful SMART Grant applications feature strong public-private partnerships where the government entity serves as the applicant and the technology company provides the innovation platform. Companies should actively engage with local transportation agencies to develop collaborative proposals.
SMART specifically targets demonstration-stage transportation technology requiring real-world deployment validation. Unlike formula allocations, it supports connected vehicle infrastructure, drone corridors, autonomous shuttles, and smart traffic platforms. The programme emphasizes community engagement and equitable access, ensuring technologies address mobility challenges in underserved rural and urban disadvantaged communities.
Applications require public sector sponsorship from state transportation departments, metropolitan planning organizations, or transit authorities. Private companies participate as project partners providing technical solutions within sponsor-led applications. Technology firms should cultivate relationships with prospective public sponsors well ahead of deadlines to develop competitive collaborative proposals demonstrating mutual institutional commitment.
References
- SMART Grants Program. U.S. Department of Transportation. View source
- Infrastructure Investment and Jobs Act (IIJA) Funding Status. U.S. Department of Transportation. View source
- SMART Stage 2 Implementation Grants. U.S. Department of Transportation. View source
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