INDOT announces significant changes to Community Crossings Matching Grant program and federal funding requirements

INDIANA – The Indiana Department of Transportation (INDOT) today released crucial updates affecting all recipients of U.S. Department of Transportation (USDOT) funding, along with substantial revisions to the highly sought-after Community Crossings Matching Grant (CCMG) Program. These changes, driven by recent legislative action, aim to streamline processes, optimize funding, and ensure compliance with federal policies.

USDOT Policy Enforcement Reminder

INDOT reminds all recipients of USDOT funding to review a letter from the Secretary of Transportation, dated July 2, 2025, concerning the enforcement of specific USDOT policies. This letter underscores the importance of adherence to federal guidelines for all transportation projects. INDOT reaffirms its commitment to the successful administration of all federal assistance programs.

Major Updates to Community Crossings Matching Grant (CCMG) Program

The CCMG program, a vital source of funding for local road and bridge projects, will see several key modifications:

  • Annual Funding Cap: The CCMG fund is now capped at $100 million per year statewide. Consequently, INDOT will reduce the yearly cap per local unit of government from $1.5 million to $1 million per state fiscal year.
  • One Call for Projects: With the new overall program cap, INDOT will conduct only one call for projects per state fiscal year. The call for State Fiscal Year (SFY) 2026 will open on Wednesday, October 1, 2025, and close at 5 p.m. on Friday, October 31, 2025. Beginning in SFY 2027, the call for projects will revert to July of each year.
  • Revised Estimating Requirements: Due to the program’s cap, it is now “extremely important that solid estimates are submitted with no contingencies or built-in inflation costs.” All local governments remain eligible for this call if all requirements are met.
  • Reduced Local Match for Smaller Communities: Smaller communities will now benefit from a reduced local match of 20%, down from the previous 25% requirement.
  • Increased Force Account Work Limitation: The total project cost limitation for force account work has increased from $250,000 to $350,000.
  • Accelerated Project Award Timeline: INDOT has reduced the timeframe for awarding projects to a contractor from four to three months. This emphasizes the need for projects to be “shovel-ready” to meet this expedited schedule.
  • Annual Asset Management Plan: Each local government is still required to submit an asset management plan to LTAP by December 1 of each year to maintain eligibility for the subsequent year’s call.
  • Contract Signing Authority Documentation: A new requirement mandates that each Local Public Agency (LPA) submit its contract signing authority and supporting documentation with its application.
  • Eligibility for the October Call: Local government entities with a CCMG project that is more than two years old and has not yet been closed will not be eligible for the upcoming October call. All project closeout documents must be submitted by August 29, 2025, to your local program director, and any funding paybacks are due by September 30, 2025, to ensure eligibility.

ADA and Title VI Compliance

INDOT reiterates its obligation to ensure that local units of government receiving state or federal funding for transportation projects comply with the Americans with Disabilities Act (ADA) and Title VI of the Civil Rights Act. Any local government not currently compliant is urged to submit their necessary documents as soon as possible to accessforall@indot.in.gov if they intend to receive CCMG funding.

For any questions regarding the Community Crossings Matching Grant program, local government entities are encouraged to contact the following individuals based on their district:

These changes are effective immediately and are critical for local governments planning to apply for future CCMG funding or those currently managing federally funded transportation projects.