The Michigan Department of Transportation (MDOT) Small Urban Program provides federal Surface Transportation Block Grant Program (STP) funds to cities, villages, transit agencies, and road commissions within or serving urbanized areas with populations ranging from 5,000 to 50,000. Eligible applicants may submit road and transit capital projects for funding consideration through a call for projects issued by MDOT. The program aims to equitably distribute funds across the state, allowing communities to implement meaningful infrastructure improvements in accordance with federal regulations.

The primary objective of the program is to support transportation infrastructure projects that enhance mobility and safety within small urban areas. Eligible projects include road improvements on the federal-aid highway system and transit capital projects such as bus replacements, fleet rehabilitation, communication equipment, and facility renovations. Projects must align with regional land use and development plans, and applicants are encouraged to coordinate with the appropriate Regional Planning Agency (RPA) to ensure compliance.

The program provides up to $375,000 per project for fiscal years 2022 and 2023 and up to $385,000 per project for fiscal years 2024-2026. A 20% non-federal funding match is required, and this match must be in cash rather than in-kind contributions. Local Project Selection Committees, consisting of city or village governments, transit providers, and county road commissions, are responsible for prioritizing and selecting projects for funding consideration. If tribal lands are included within an urban area, tribal governments must be consulted in the project selection process.

Project prioritization is crucial to the selection process. Each Small Urban area committee must rank proposed projects, and final selections are made by MDOT for inclusion in the Statewide Transportation Improvement Program (STIP). Small urban areas located within Metropolitan Planning Organization (MPO) boundaries must coordinate with their MPOs to ensure selected projects are included in their Transportation Improvement Programs (TIPs).

Public involvement is a key component of the selection process. Each small urban area requesting funding must notify residents and elected officials of project selection opportunities. A minimum of one public meeting must be held, and the public notice must be published in a local news outlet or on an internet webpage. Documentation of this public notice must be included with the application.

To apply, applicants must submit a completed small urban project application (MDOT Form 2606 for road projects or Form 2638 for transit projects), minutes from the project selection committee meeting, a public announcement copy, and documentation of local financial match assurance. Applications must be submitted by the specified due date to MDOT's Small Urban Program Manager, Mark Kloha, via email at kloham@michigan.gov. MDOT retains the final decision-making authority for project selection and funding distribution.