New London ― The U.S. Department of Transportation has awarded New London $17 million for planned transit-related infrastructure improvements downtown, the largest portion going toward expansion of the city’s Water Street parking garage, U.S. Rep. Joe Courtney, D-2nd, announced on Thursday.

The city has for years sought federal funds for the garage expansion and improvements that would alleviate pedestrian safety and congestion concerns in the area, especially in anticipation of the completion of the National Coast Guard Museum on the city’s waterfront.

Initial plans for the garage expansion would add 400 spaces ― it currently has 910 ― to the top three floors of the five-floor garage and expand the garage over the existing surface lot adjacent to Water Street. The ground level would serve as a tourism center and transit hub for Southeast Area Transit (SEAT) buses, moving buses off Water Street and passengers out of the elements.

The $150 million museum project, now under construction and expected to be completed in 2025, is expected to draw an estimated 300,000 people a year to the city in an area that is already home to the parking garage, train station, busing hub and waterfront ferry service. The grant money announced on Friday will in part fund ADA improvements and the parking garage expansion, the new transit hub, a restoration project planned at Union Station and Cross Sound Ferry’s new high speed ferry terminal. A breakdown of the funding was not immediately available.

A portion of the grant is also earmarked for support of the $20 million state-funded pedestrian bridge that links the museum and the parking garage and will carry visitors over Water Street and the railroad tracks.

“Today’s federal grant announcement is a big deal for New London,” Courtney said in a statement. “The award of this funding reflects years of persistent, diligent work by the city, and our congressional delegation, to make the case that the thriving downtown hub of New London deserves the support of critical federal infrastructure funding.”

The money is coming through the Rebuilding American Infrastructure with Sustainability and Equity, or RAISE, discretionary grant program, funded by the federal infrastructure law Congress passed last year.

The city’s years-long effort to seek funding was led by New London Parking Authority Director Carey Redd II and supported by Courtney and Sen. Chris Murphy and Richard Blumenthal.

While the money ― the city had applied for nearly $25 million ― is not expected to cover the entire cost of the parking garage expansion, New London Mayor Michael Passero said the city will continue to seek outside funds to complete the project.

Courtney said the projects will continue a “dramatic transformation of New London’s downtown and boost economic opportunity for the entire region.”

Murphy said in a statement that he expects the number of visitors to New London to “skyrocket” when the National Coast Guard Museum opens.

“This project will bring a major boost to the local economy and help make sure the city can manage the influx of visitors and traffic. The future of New London is bright, and I am laser-focused on fighting for federal funding to support the growth of southeastern Connecticut,” Murphy said in a statement.

Redd thanked the Congressional delegation for support of the grant application and said while the project’s focus is safety, “it will also greatly enhance economic opportunities in the City and beyond.”

g.smith@theday.com