City receives $1 million in federal funding for parking garage, Meuser announces

Congressman Dan Meuser (R-PA9) announced Friday, Feb. 6, that he secured over $17 million in federal funding to support 12 projects across the 9th District, including $1 million for a parking garage in downtown Lebanon.

The funding comes through the Transportation, Housing and Urban Development Appropriations Act, which was signed by President Donald Trump on Feb. 3.

The project funding, described as “Downtown Improvements” in the official record of congressionally directed spending for fiscal year 2026, will serve as seed funding for the planned parking garage at the 7th and Willow streets city-owned lot in Lebanon.

Lebanon Mayor Sherry Capello said that, while the city is very grateful for the $1 million federal award, construction of the garage is not imminent. The garage – previously pitched as a five-story, 294-space structure – is estimated to cost $9.5 million.

“This funding represents an important piece of a much larger financing plan,” Capello said. “Moving forward, the city will need to continue exploring additional funding avenues and partnerships, as well as other public sources — to fully advance the project.”

The federal funding should strengthen the city’s position when pursuing other grants.

“Demonstrated federal investment helps show that a project is credible, well-planned, and regionally supported, which can improve competitiveness for future funding opportunities,” said Capello.

These funds are highly competitive, the mayor said, and she said the city is extremely grateful for the support of Meuser, state Sen. Chris Gebhard, and state Rep. John Schlegel.

The funding is a foundational step towards the long-term plan to construct a downtown parking garage.

“In the short term, it allows the city to continue advancing planning and coordination for downtown parking and infrastructure needs,” said Capello. “In the mid-term, it helps leverage additional funding opportunities.

“In the long term, it supports our broader goal of downtown revitalization — improving access, supporting economic growth, encouraging residential development, and strengthening the overall vitality of Lebanon’s downtown.”

Meuser’s office said the project will support “economic revitalization, residential growth, and improved transit connectivity.”

“The more than $17 million in FY26 federal funding my office helped secure for Pennsylvania’s Ninth District will go directly toward meeting immediate needs across our region,” Meuser said in a press release. “These investments will modernize aging infrastructure, improve water quality, and expand access to workforce training and community wellness resources.”