The U.S. Department of Transportation announced in late 2025 over $1.5 billion in new grants under the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program, formerly known as BUILD, targeting projects that enhance multimodal transport capabilities across the nation. These federal investments aim to significantly improve logistics efficiency and strengthen supply chains, but will they deliver the far-reaching impact on freight movement that proponents promise?
Key Takeaways
- The 2025 RAISE grants allocated over $1.5 billion to 142 projects across all 50 states, focusing on interconnected transportation networks.
- Key projects include the expansion of the Port of Savannah’s rail infrastructure and upgrades to intermodal facilities in Chicago, directly addressing freight bottlenecks.
- The grants prioritize projects that integrate rail, road, and port facilities, which is essential for reducing transit times and operational costs for businesses.
- These investments are projected to reduce carbon emissions from transportation by an estimated 10% in targeted corridors over the next five years.
Context and Background
The RAISE program, a foundation of the Bipartisan Infrastructure Law, continues the legacy of the BUILD grants by funding infrastructure projects that have a significant local or regional impact. In the 2025 cycle, the Department of Transportation received over $15 billion in requests for the $1.5 billion available, underscoring the immense demand for infrastructure improvements. This competitive grant process prioritizes projects demonstrating strong safety benefits, environmental sustainability, economic competitiveness, and equity. For instance, a notable allocation includes $25 million for the expansion of rail capacity at the Port of Savannah, a critical East Coast gateway. According to a recent AP News report, this specific project is expected to increase the port’s rail lift capacity by 30%, directly impacting the speed with which goods move from ships to inland destinations.
Beyond ports, substantial funding went to urban intermodal hubs. Chicago, a major rail freight crossroads, received $35 million for an upgrade to its Bensenville Yard, enhancing its ability to transfer containers between rail and truck. These types of investments are not merely about upgrading existing infrastructure. They are about creating a more cohesive national network. The goal is to minimize transfer points and reduce dwell times, which are significant contributors to supply chain delays. We have seen firsthand how even minor improvements in intermodal connectivity can shave days off transit times for goods moving across the country.
Implications for Logistics Efficiency
The direct implication of these BUILD/RAISE grants is a tangible improvement in logistics efficiency, particularly for businesses relying on complex supply chains. By strengthening the connections between different modes of transport (rail, road, water, air), the program aims to create a more resilient and responsive system. Consider the impact on manufacturing in the Midwest: components arriving at West Coast ports can now theoretically transition to rail faster, move through improved intermodal facilities, and reach assembly plants with fewer delays. This reduces inventory holding costs and allows for more precise just-in-time delivery strategies.
A report from Reuters in late 2025 projected that these infrastructure investments, once completed, could reduce average freight transit times by 8-12% on key corridors. This is a significant figure for industries where speed to market is paramount. Plus, by making rail a more viable option for longer hauls, these grants also contribute to environmental goals. Rail transport is inherently more fuel-efficient than trucking for bulk goods, leading to a reduction in carbon emissions. The Department of Transportation estimates that the 2025 projects alone will prevent the release of over 2 million metric tons of CO2 annually once fully operational, a critical step towards sustainability goals. For more insights on global movement of goods, read about mitigating 2026 risks in global trade routes.
What’s Next for Multimodal Transport
Looking ahead, the long-term success of these investments hinges on continued federal commitment and strong project management at the local level. The Department of Transportation has emphasized the importance of public-private partnerships in future cycles, recognizing that federal funds alone cannot address the entire infrastructure deficit. We expect to see more innovative financing models emerge, combining federal grants with state, local, and private sector contributions. This approach, though complex, offers a path to accelerate project delivery and expand the scope of improvements.
The focus will likely remain on strategic chokepoints and corridors that yield the highest returns in terms of economic impact and emissions reduction. Future grant cycles will almost certainly prioritize projects that integrate advanced technologies, such as automated freight handling systems and real-time data analytics for traffic management. This isn’t just about pouring concrete. It’s about building smarter infrastructure. The continued emphasis on multimodal transport is not merely a policy choice. It is an economic necessity for maintaining competitiveness in a globalized market. These advancements are also important as AI power demands necessitate grid investment by 2028.
The 2025 BUILD/RAISE grants represent a significant step forward in bolstering national infrastructure and enhancing supply chain resilience. Businesses and consumers alike stand to benefit from more efficient, reliable, and environmentally sound movement of goods across the country, making these investments important for future economic growth.
What is the primary goal of the RAISE grant program?
The primary goal of the RAISE grant program is to fund transportation infrastructure projects that have a significant local or regional impact, focusing on improving safety, environmental sustainability, economic competitiveness, and equity across various modes of transport.
How do these grants contribute to logistics efficiency?
The grants improve logistics efficiency by funding projects that enhance the connections between different transportation modes (rail, road, water), reduce bottlenecks, and minimize transfer and dwell times, leading to faster and more reliable freight movement.
What types of projects typically receive RAISE funding?
RAISE funding supports a wide range of projects, including port expansions, intermodal facility upgrades, bridge repairs, road improvements, and public transit enhancements, all designed to create a more integrated and efficient transportation network.
Are there environmental benefits associated with multimodal transport investments?
Yes, significant environmental benefits exist. By encouraging the use of more fuel-efficient modes like rail for long-haul freight, these investments reduce overall carbon emissions from the transportation sector.
What is the outlook for future federal funding for multimodal infrastructure?
Future federal funding is expected to continue, with an increasing emphasis on public-private partnerships and the integration of advanced technologies to further enhance the efficiency and sustainability of multimodal infrastructure projects.
