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Transportation Funding & Financing

Using Federal Funds as Match

Although moneys from other federal agencies generally cannot be used to pay for the local portion of a Federal-aid project, some flexibility exists in three instances.

  1. Transportation Enhancement Projects - Funds from other Federal agencies may count toward the non-federal share of transportation enhancement projects. See Title 23, Section 133(e)(5)(C)(ii) on the innovative financing of transportation enhancement activities.

  2. Funds from Federal Land Management Agencies - These funds may be used as a nonfederal match on all Title 23 projects, as well as public transportation projects under Chapter 53 of Title 49. Federal land management agencies manage federally owned land, which comprises nearly 30 percent of all U.S. land. Almost all of this land is managed by three departments: 1) the Department of Agriculture through the Forest Service; 2) the Department of Interior through the Bureau of Land Management, Fish and Wildlife Service, and National Park Service; and 3) the Department of Defense primarily through the Army Corps of Engineers. See Title 23, Section 120(k) on the use of Federal Land Management Agency funds.

  3. Funds from the Federal Lands Highway Program - These funds may be used as a nonfederal match on all Title 23 projects, as well as public transportation projects under Chapter 53 of Title 49, that provide such access. See Title 23, Section 120(l) on the use of Federal Lands Highways Program funds.