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2011 Discretionary Grant Programs

Funding of a Highways for LIFE Project

There are 3 options that the state transportation agencies could choose in funding Highways for LIFE (HfL) projects.

Option 1 is requesting up to 20%, but not more than $5,000,000 of the total cost of a construction project. The $5,000,000 amount is per SAFETEA-LU but realistically no project will be given the maximum amount due to the total funding provided for the HfL program. HfL have capped the funding level at $2,000,000 per project. This would be in addition to the state apportionment.

Option 2 is requesting a waiver of either 10% or 20% of the State match. In other words, the States could use other Federal Aid funds such as IM, NHS, STP and CMAQ funds for their 10 or 20% match making it a 100% Federally funded project. However, not more than 10% of the apportioned Federal Aid funds could be applied to the HfL project.

Option 3 is requesting both Option 1 and Option 2.

Highways for LIFE Funding Examples

State XYZ receives the following federal apportionments for FY 11:

10% Limit
Interstate Maintenance: $8,000,000 $ 800,000
National Highway System:     $45,000,000     $ 4,500,000
Surface Transportation Program: $30,000,000 $ 3,000,000
Congestion Mitigation/Air Quality: $8,000,000 $ 800,000

The proposed HfL project has a construction cost of $18,000,000. It is an 80/20 project.

Option 1- Highways for LIFE funds

Federal 80% of $18,000,000     :  $14,400,000
State 20% of $18,000,000 : $3,600,000

Project receives $2,000,000 in HfL funds.
State is still responsible for $1,600,000.

The HfL funds is used to offset the State's 20% match therefore, the State is still responsible for remaining 20% share. The HfL funds do not impact the State's obligation authority.

Option 2 - Waive State Match

Federal 80%     :  $14,400,000
State 20% : $3,600,000arrow pointing leftOf the $3,600,000, the State could choose Option 2 to use other federally apportioned funds for the State match.
IM funds      : $ 800,000
STP funds : $ 2,800,000
OR
NHS funds :  $ 3,600,000

The State could choose to use the maximum 10% of their IM funds and $2,800,000 of STP funds as their State match OR use all NHS funds to make the match. The funding category (IM and STP, or NHS) the State chooses to use for their State match must meet that program funding eligibility requirements.

Option 3 - Highways for LIFE funds and Waive State Match

Federal 80% of $18,000,000     :  $14,400,000
State 20% of $18,000,000 : $3,600,000

Project receives $2,000,000 in HfL funds.
State is still responsible for $1,600,000.

Of the $1,600,000, the State could and use other federally apportioned funds for the State match.

HfL funds     :  $2,000,000
STP funds : $1,600,000

This option allows the State to receive the $2,000,000 of HfL funds and use other federally apportioned funds for the remaining amount of the 20% State match. The funding category (i.e. STP) the State chooses to use for their State match must meet that program funding eligibility requirements.

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