FEDERAL-AID POLICY GUIDE
August 31, 1994, Transmittal 11

G 3015.6

CHAPTER 1

FEDERAL SHARES ESTABLISHED BY 23 U.S.C.
AND THE ISTEA OF 1991

OPI: HFS-40/HNG-12

Par.

  1. Federal Share Payable (23 U.S.C. 120)

  2. Federal Share Prior to Enactment of the 1991 ISTEA

  3. Federal Share for Individual Programs

  4. Indian Reservations and National Parks and Monuments

  1. FEDERAL SHARE PAYABLE (23 U.S.C. 120)

    1. The basic Federal share payable for Federal-aid highway projects, established by 23 U.S.C. 120, is 90 percent for Interstate system projects (including a project to add high occupancy vehicle lanes and a project to add auxiliary lanes but excluding a project to add any other lanes); 80 percent for other added lane projects on the Interstate System, the National Highway System (NHS), and the Surface Transportation Program (STP); and 100 percent for certain safety projects, territorial projects, and emergency relief projects (for eligible emergency repairs to minimize damage, protect facilities, or restore essential traffic accomplished within 180 days).

    2. The basic Federal share payable applies to all projects unless otherwise provided by Title 23 or other legislation.

    3. The basic Federal share payable under sections 120(a) and 120(b) may be increased by the sliding scale rates for public lands States, not to exceed 95 percent.

    4. A State may contribute an amount in excess of the non-Federal share of any project under Title 23.

  2. FEDERAL SHARE PRIOR TO ENACTMENT OF THE 1991 ISTEA

    1. For new projects advanced using funds authorized prior to FY 1992, the Federal share is governed by theprovisions of Title 23 in existence prior to enactment of the 1991 ISTEA (ISTEA section 1100).

    2. For NHS, STP, or Bridge funds used to finance overruns on previously authorized Federal-aid projects, the Federal share shall be that originally authorized for the project.

  3. FEDERAL SHARE FOR INDIVIDUAL PROGRAMS

    1. Attached is a summary of 23 U.S.C. 120, other sections of Title 23 that contain exceptions to section 120, and Federal share information from the ISTEA. The exceptions to 23 U.S.C. 120 and the Federal share information from the ISTEA are not subject to the sliding scale rates for public lands States. Listed sections of 23 U.S.C. and the ISTEA should be referred to for program specifics.

    2. Ten percent of the STP apportionments have been set aside to carry out sections 130, Railway-Highway Crossings; and 152, Hazard Elimination (23 U.S.C. 133 (d)(1)). The Federal share for projects using the set-aside funds may not exceed 90 percent, unless qualified for the increased Federal share for safety work in accordance with section 120(c). The Federal share for other projects, for these programs, will be the same as source funds.

    3. Categorical funding has been discontinued for several programs such as sections 131, Outdoor Advertising; 136, Junkyards; 147, Priority Primary; and 155, Access Highways to Certain Lakes. The Federal share payable for new projects for these programs, using funds authorized by the ISTEA, will be the same as source funds.

    4. The Appalachian Regional Commission provides funds for Appalachian Development Highways (ISTEA section 1069(y)). The Federal share payable for Appalachian Development Highway projects is 80 percent.

  4. INDIAN RESERVATIONS AND NATIONAL PARKS AND MONUMENTS

    1. Title 23 U.S.C., Section 120(f) provides 100 percent Federal share, for projects within Indian reservations and national parks and monuments, which are financed with funds apportioned under Section 104 (Apportion-ment). This increased Federal share does not apply to Section 144, Highway Bridge Replacement and Rehabilitation Program (HBRRP).

    2. The increased Federal share does not apply to all Indian reservation roads since, by definition, these may include roads that provide access to Indian reservations. The increased share applies to Indian reservation roads that lie within the reservation. If a project lies both within and outside an Indian reservation, only the portion within the reservation may be eligible for 100 percent Federal share.

    3. Indian Reservation Road (IRR) funds can be used to match either Section 104 apportioned funds or Section144 (HBRRP) funds that are being used to improve Indian reservation roads. This authority is provided by Title 23. However, the one percent HBRRP set-aside funds transferred to the Bureau of Indian Affairs (BIA) may not be used to match any Federal-aid highway funding sources.

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