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The remaining 20 percent of the project cost is generally the responsibility of the project sponsor. The sponsor may generate these "matching funds" from a variety of sources. The value of donated materials, services and land; funds from other state or non-DOT federal programs; the value of local and state government services, and the value of preliminary engineering prior to project approval may be counted towards the matching requirement in most states. Project sponsors may begin research on sources of matching funds and other project funds with the following list of additional funding sources. Congress has sought to facilitate the funding of TE projects by creating special "innovative financing" measures for the TE program. For example, innovative financing allows states, in some cases, to establish a process with FHWA to obtain payment in advance for TE projects, rather than through reimbursement. States also have the option to calculate their share of a project cost (the non-federal match) either on a project-by-project basis, for multiple projects, or for the TE program as a whole. Read more about innovative financing in the FHWA guidance or the NTEC technical brief, linked below. RELATED DOCUMENTS*
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The federal government provides funds for the TE program through reimbursement. That is, the project sponsor is expected, in most cases, to pay the full cost of the project up front and will be later reimbursed by the federal government through the state department of transportation (DOT). Generally, the federal
government will reimburse up to 80 percent of a TE project cost. Not all types of project expenses are reimbursable, however. Reimbursable costs vary from state to state but usually include: project feasibility, planning and engineering plans, environmental reviews, land acquisition and construction.
Contact NTEC at 1-888-388-NTEC (6832), Fax: 202-223-9257
2121 Ward Court, NW, 5th Floor, Washington, D.C. 20037-1213
NTEC@ENHANCEMENTS.ORG