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Several provisions are included in the Act which provide greater flexibility to States, MPOs, and local governments in satisfying the non-Federal matching requirements of a project.

Tapered Match

The Act removes a provision in current law that requires application of the Federal match to each payment to the State. Removing this requirement allows the Secretary to develop policies regarding adjustment of the Federal match during the life of a project. [1302]

Credits for Acquired Land

The Act expands current law relating to donated private property to also allow the fair market value of land lawfully obtained by the State or local government to be applied to the non-Federal share of project costs. [1301]

Program Match

The Act establishes annual program-wide approval for STP projects, rather than the current quarterly project-by-project approval process. This provides the Secretary with discretion to apply the match requirement to the annual program in lieu of individual projects. [1108(c)]

Using Federal Funds as Match

For transportation enhancement projects, the State may apply funds from other Federal agencies to the non-Federal share of the project. [1108(b)(2)(C)(ii)]

Funds appropriated to any Federal land management agency may be used to pay the non-Federal share of a Federal-aid highway project funded under section 104 of Title 23, United States Code, (i.e. a project using NHS, CMAQ, STP, or IM funds.) [1115(a)]

Federal Lands Highway Program funds may be used to pay the non-Federal share of projects funded under Section 104 of Title 23 that provide access to or within Federal or Indian lands. [1115(a)]

Toll Revenue Credits

The Act codifies provisions similar to those authorized by section 1044 of the ISTEA which allows the States to accumulate credits to be applied to the non-Federal share of certain highway and transit projects. The credits are based on toll revenues used to build, improve, or maintain certain highways, bridges, or tunnels. [1111(c)]

September 14, 1998

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