Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) Grant Program

The Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) Grant Program is a federal initiative administered by the U.S. Department of Transportation through the Pipeline and Hazardous Materials Safety Administration (PHMSA). It was authorized under Division J of the Infrastructure Investment and Jobs Act (IIJA), also known as Public Law 117-58. The program was created to address the safety and modernization needs of high-risk, leak-prone municipal and community-owned natural gas distribution infrastructure across the United States. In alignment with Executive Order 14154, “Unleashing American Energy,” the program seeks to reduce incidents, mitigate economic losses, and improve public safety through targeted investments in local energy infrastructure. The primary goal of the NGDISM program is to replace or rehabilitate aging and leaking natural gas pipelines in publicly or community-owned systems. It also supports the acquisition of specialized equipment to detect leaks or improve safety outcomes. The FY 2026 funding cycle makes $98 million in federal grant funding available for such projects. This allocation is part of a larger $1 billion program spread across five fiscal years. Awards are disbursed on a reimbursable basis for eligible costs and are intended to fund projects that provide operational independence or discrete components of larger safety upgrades. The program does not cover projects that involve expanding natural gas service to new customers, transmission line work, or the purchase of standalone construction equipment unrelated to pipeline safety improvements. Applicants must be public entities that own and operate natural gas distribution systems. Eligible applicants include city, township, or county governments, municipal utilities owned by local governments, community-owned utilities operated by their customer base, and federally recognized Tribal governments. For-profit entities and projects involving infrastructure owned by such entities are explicitly excluded. No cost sharing or matching funds are required to participate in the program. The maximum award to a single entity over the five-year lifespan of the program is capped at $125 million, which represents 12.5% of the total available program funds. The application process is detailed and includes both standard federal forms and specific project documentation. Applications must be submitted electronically through Grants.gov and include the SF-424 form series (with variations based on project type), a Budget Narrative, a Project Narrative, Title VI Assurances, and other supporting documentation such as the Distribution Integrity Management Plan (DIMP) and Gas Distribution Annual Report (GDAR). The Project Narrative must follow an eight-part format and include detailed descriptions of proposed projects, budgets, risk mitigation strategies, and expected outcomes. Applications are limited to 25 narrative pages and must be submitted by May 22, 2026, at 11:59 p.m. PST. Applications will be reviewed through a two-part process involving technical and programmatic evaluations. Technical reviews assess alignment with pipeline safety goals, risk mitigation, and project readiness. Programmatic reviews consider budget accuracy, economic benefits, and job creation potential. Projects that demonstrate measurable safety improvements and serve disadvantaged communities may receive priority consideration. The anticipated performance period for awarded projects is up to 60 months, with extensions granted on a case-by-case basis. Awards will be announced electronically by the Secretary of Transportation, and recipients will be reimbursed only for approved costs incurred after execution of the grant agreement and successful completion of all environmental and compliance reviews. Additional support and inquiries may be directed to PHMSA's NGDISM Program Team via email at [email protected] or phone at 202-366-7652. To apply, applicants must ensure registration in SAM.gov and Grants.gov and maintain active status through the application and award periods. Questions regarding the grant may be submitted up to May 15, 2026. The application window officially opened on March 23, 2026. Though this is a recurring program authorized through FY 2036, applicants are strongly encouraged to apply within the current cycle, as funding is competitive and not guaranteed even for highly rated submissions.

Prioritize safety impact and provide complete risk profiles; include detailed budgets with cost documentation and tie projects to DIMP threats.