On November 21, 2024, the U.S. Department of Transportation (DOT) announced the opening of the FY 2025 round of the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Discretionary Grant program ($1.5B), which provides a unique opportunity for the DOT to invest in road, rail, transit, and port projects that promise to achieve national objectives. Previously known as the Better Utilizing Investments to Leverage Development (BUILD) and Transportation Investment Generating Economic Recovery (TIGER) Discretionary Grants, Congress has dedicated nearly $9.9 billion for 13 rounds of National Infrastructure Investments to fund projects that have a significant local or regional impact.
Projects for RAISE funding will be evaluated based on merit criteria that include safety, environmental sustainability, quality of life, improves mobility and community connectivity, economic competitiveness and opportunity, state of good repair, partnership and collaboration, and innovation. Within these criteria, the DOT will prioritize projects that address climate change, proactively address racial equity, and reduce barriers to opportunity. The eligibility requirements of RAISE allow project sponsors at the state and local levels to obtain funding for multi-modal, multi-jurisdictional projects that are more difficult to support through traditional DOT programs. RAISE provides capital funding directly to any public entity, including municipalities, in contrast to traditional Federal programs, which provide funding to very specific groups of applicants (mostly state DOTs and transit agencies).
For this round of RAISE grants, the minimum award for projects in urbanized areas with a population greater than 200,000 is $5 million and the maximum award is $25 million per project. The City of Sugar Land is within the Houston Urbanized Area and therefore is considered urban. At least $75 million will be awarded towards planning and pre-construction activities.
Project Description
In 2024, the City of Sugar Land began a feasibility study with Swyft Cities, a provider of advanced urban mobility systems, to bring an autonomous elevated cable and rail transportation system (aka Aerial Gondola system) to the greater Houston region for fast, sustainable, and convenient mobility. The system uses small electric vehicles that resemble conventional gondolas but use advanced autonomous technologies to move independently along a network of elevated fixed cables and rails. Vehicles are on-demand, and systems can be built at a cost far below conventional transit projects. All trips are fast and nonstop with no stops at intermediate stations. Prototypes have demonstrated low cost, an excellent user experience with great views, and environmental sustainability with zero emissions. An aerial gondola system would be a huge asset to the City, showcasing the first of its kind on-demand and point-to-point system in the U.S. and an example of trailblazing innovation to address traffic congestion, improve air quality, encourage active travel modes, and improve connectivity and mobility for anyone who lives, works, or plays in Sugar Land.
The City will be applying for a planning grant to include environmental analysis, equity analysis, community engagement, feasibility studies, benefit-cost analysis, and other pre-construction activities. The total estimated cost to plan, design, and engineer the full three-phased system is $12 million. The City’s obligation will require a local match of $2.4 million (20%), and the RAISE Grant will fund $9.6 million (80%). We intend to fund the City’s 20% local match through Fort Bend County’s 2026 Mobility Bond, which is currently in the early stage of planning. Since this is a reimbursement program, the City will be required to front the entire cost of the project and will receive the 80% in reimbursement if awarded. FY 2025 RAISE grant funds must be obligated by September 30, 2029, and expended by September 30, 2034. The City has the right to not accept the grant if awarded. Staff is in the process of seeking additional funding opportunities, including the Houston-Galveston Area Council (H-GAC) Transportation Improvement Program (TIP) Call for Projects, to supplement funding for the project.
The application is due on Thursday, January 30, 2025 no later than 11:59 PM Eastern Time. DOT will make award announcements no later than June 28, 2025. This process does not commit the City to expend any funds at this time.
The Engineering Department requests City Council approve Resolution No. 25-01 to submit an application for the U.S. Department of Transportation (DOT) 2025 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Discretionary Grant program for the planning of the Autonomous Elevated Cable & Rail System.