Latest updates - May 2026
The latest grant opportunity runs May 19-June 30, 2026.
Program OverviewThe
Carbon Reduction Program is a federal competitive grant program created by the 2021 Bipartisan Infrastructure Law. The program will provide Oregon $82 million over five years to fund projects that reduce greenhouse gas emissions from transportation.
2026 grant opportunity - Small Urban and Rural Areas
We opened the latest grant opportunity for the program May 19, 2026. The application deadline is
June 30, 2026.
Application link
Application deadline: June 30, 2026
Eligible applicants
Counties, cities, Tribal governments, and local transportation agencies representing urban and rural areas with populations under 50,000 that are
not located within a census defined urbanized area.*
*If you are unsure if your jurisdiction is located within a census defined urbanized area, contact
Johanna Anderson, ODOT Carbon Reduction Program manager.
Eligible projects
In general, projects are eligible if they meet any of these criteria:
- Shifts vehicles to more efficient fuels or technologies.
- Improves or encourages non-driving options.
- Invests in or expands technology that makes the transportation system more efficient.
- Manages demand on the transportation system
You can find all of the past funded projects in the “past grant opportunities” section of this webpage.
Application resources
Available funding
We have about $2.5 million available for the 2026 grant opportunity. We’ve split the available funding between two population sizes, following federal program rules.
Population size
|
Funding available
|
49,999 - 5,000
| $1.1 million
|
Fewer than 5,000
| $1.4 million
|
Past grant opportunities
2024 Small Urban and Rural Areas call for projects
The 2024 call for projects for Small Urban and Rural Areas ran March 1 - May 31, 2024. In November 2024, ODOT announced that about $11.3 million was awarded for
14 projects.
2023 Small Urban and Rural Areas call for projects
Other program information
Program development process
From June to August 2022, the ODOT Climate Office developed strategies and priorities to guide the program, and project selection criteria with the Carbon Reduction Program Consultation Group. The consultation group consisted of Oregon Metropolitan Planning Organizations, Transportation Management Areas, and partners. The strategies and priorities and the project selection criteria will be used to select projects from the Small Urban and Rural call for projects and statewide portion of funding.
Carbon Reduction Strategy
The Carbon Reduction Program requires ODOT to develop a Carbon Reduction Strategy. The strategy identifies Oregon’s strategies and priorities for reducing emissions from the transportation sector.
Read ODOT’s Carbon Reduction Strategy.
Types of funding available under the program
The Carbon Reduction Program has three types of funding available for states.
- Transportation management areas are the urbanized areas of Portland, Eugene and Salem. The regional agencies for these areas will decide which projects get funded in their jurisdictions.
- ODOT statewide projects are projects overseen by ODOT. The agency will decide which projects to fund using federal and state criteria.
- Small Urban and Rural Areas include counties, cities, rural areas, and tribal governments with populations less than 200,000. ODOT will coordinate a grant program to distribute the federal funding for eligible projects in these areas.