U.S. Department of Transportation/Federal Highway Administration
Federal-aid Essentials for Local Public Agencies - Federal-aid Simplified

Federal-aid Highway Program

The Federal-Aid Highway Program supports State highway systems by providing financial assistance for the construction, maintenance and operations of the Nation's 3.9 million-mile highway network, including the Interstate Highway System, primary highways and secondary local roads. The Federal Highway Administration (FHWA) is charged with implementing the Federal-aid Highway Program in cooperation with the States and local government.

Local government - primarily counties, cities and towns, or local public agencies (LPAs) - own and operate about 75 percent, or roughly 2.9 million miles, of the Nation's highway network. LPAs build and maintain this network using a variety of funding sources, including the Federal-aid Highway Program. An estimated 7,000 LPAs manage about $7 billion annually in Federal-aid projects, or roughly 15 percent of the total program.

That's why understanding Federal-aid requirements is so important in the delivery of Federal-aid projects at the local level. Federal-aid Essentials highlights key components of the program to help LPAs and their State partners successfully manage locally administered Federal-aid projects.