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Special Federal-aid Funding

NOTE: This memo is canceled on November 19, 2012 and superseded by the memo "Surface Transportation Program (STP) Implementation Guidance" 11/19/2012

MEMORANDUM
Subject: INFORMATION: Surface Transportation Program (STP) Section 1113 of SAFETEA-LU - Implementing Guidance Date: November 30, 2005
From: /s/ Original signed by:
Dwight A. Horne
Director of Program Administration
Refer To: HIPA-10
To: Division Administrators

The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU, Public Law 109-59) continued authorization of the Surface Transportation Program (STP) under 23 U.S.C. 133. Section 1101(a)(4) of SAFETEA-LU authorizes the following amounts for the STP through FY 2009:

FY 2005$6,860,096,662
FY 2006$6,269,833,394
FY 2007$6,370,469,775
FY 2008$6,472,726,628
FY 2009$6,576,630,046
TOTAL$32,549,756,505

Additional funds will also be available for the STP under the programmatic distribution of the Equity Bonus program under 23 U.S.C. 105, as amended by Section 1104 of SAFETEA-LU.

Set-Asides Prior to Apportionment of STP Funds

Under the provisions of 23 U.S.C. 104(d), as amended by Section 1103(f) of SAFETEA-LU, prior to the apportionment of STP funds for FY 2005, $560,000 is to be set aside for the Operation Lifesaver Program, and $5,250,000 is to be set aside for Rail-Highway Crossing Hazard Elimination in High Speed Rail Corridors. For fiscal years 2006 through 2009, the Operation Lifesaver Program and Rail-Highway Crossing Hazard Elimination in High Speed Rail Corridors are funded by separate authorizations under 23 U.S.C. 104(d), and are no longer set-asides from the STP. In addition, under the provisions of 23 U.S.C. 104(f)(1), as amended by Section 1107 of SAFETEA-LU, 1.25 percent of STP funds are set aside for metropolitan planning.

Under the provisions of 23 U.S.C. 140(b), an amount not to exceed $10,000,000 will be set aside from the STP for each of FYs 2005 through 2009 for the administration of the On-the-Job Training/Supportive Services program. Likewise, under the provisions of 23 U.S.C. 140(c), an amount not to exceed $10,000,000 will be set aside from the STP for each of FYs 2005 through 2009 for the administration of the Disadvantaged Business Enterprise Training program.

Apportionment of STP Funds

SAFETEA-LU did not change the apportionment formula under 23 U.S.C. 104(b)(3)(A) for STP funds. The funds continue to be apportioned to the States based on the following factors:

  • 25 percent of the apportionment is based upon each State's share of the total lane miles of Federal-aid highways.
  • 40 percent of the apportionment is based upon each State's share of the total vehicle miles traveled on lanes on Federal-aid highways.
  • 35 percent of the apportionment is based upon each State's share of the estimated tax payments attributable to highway users paid into the Highway Trust Fund (other than the Mass Transit Account) in the latest fiscal year for which data are available.

Under the provisions of 23 U.S.C. 104(b)(3)(B), each State must receive a minimum of ½ of 1 percent of the total funds apportioned for STP.

Set-Asides of Apportioned STP Funds

As under TEA-21 and previous legislation, 2 percent of each State's annual STP apportionment is set aside for state planning and research (SPR) activities under 23 U.S.C. 505.

For FY 2005, the 10 percent set-aside of a State's STP funds for the safety program continues as it was under TEA-21. However, this provision [23 U.S.C. 133(d)(1)] was repealed on

October 1, 2005, under the provisions of Section 1113(b) of SAFETEA-LU. Funding is provided for these safety programs for FY 2006 and thereafter under the new Highway Safety Improvement Program of 23 U.S.C. 148 (added by Section 1401 of SAFETEA-LU).

For FY 2005, the 10 percent set-aside of a State's STP funds for Transportation Enhancements (TE) continues as under TEA-21. For 2006 and thereafter, under the provisions of 23 U.S.C. 133(d)(2), as amended by Section 1113(c) of SAFETEA-LU, the TE set-aside is to be the greater of 10 percent of the State's STP apportionment for the fiscal year or the dollar amount of the TE set-aside for the State for FY 2005.

The division of STP funds between urbanized areas of over 200,000 population and other areas of the State continues as under TEA-21, except that, for FYs 2006 and thereafter, this division of funds is based upon the remaining 90 percent of the STP apportionment rather than 80 percent, because of the elimination of the safety set-aside within the STP program. This required division of funds is under 23 U.S.C. 133(d)(3), as amended by Section 1113(b) of SAFETEA-LU. [Note: Hawaii and Alaska are exempt from dividing STP funds between urbanized and other areas under 23 U.S.C 133(d)(3)(C).]

The provision requiring States to make obligation authority available to urbanized areas over 200,000 population over two 3-year increments (FYs 2004-2006 and FYs 2007-2009) is extended under the provisions of 23 U.S.C. 133(f)(1), as amended by Section 1113(d) of SAFETEA-LU.

Under the provisions of Section 309(i) of the Denali Commission Act of 1998, as amended by Section 1960 of SAFETEA-LU, up to 15 percent of the STP funds made available to the State of Alaska may be transferred to the Denali Access System program. Such a transfer of STP funds will have no effect on the TE set-aside.

Section 1108(f) of TEA-21 Special Rule for STP Funding of Minor Collectors

The special rule under Section 1108(f) of TEA-21, which permitted obligation on minor collectors of up to 15 percent of a State's sub-allocation of STP funds for areas of less than 5,000 population, was not continued under SAFETEA-LU. Therefore, this special rule does not apply to any STP funds authorized under SAFETEA-LU.

This special rule applies only to the STP funds made available by TEA-21 and the subsequent extensions to TEA-21. The last extension act that provided STP funds was the Surface Transportation Extension Act of 2005, Part V (Public Law 109-40), which authorized FY 2005 STP funds through July 30, 2005. Therefore, the special rule applies to the STP funds made available from FY 1998 through July 30, 2005, even if those funds are obligated in a later fiscal year.

Before approving obligations of additional STP funds made available from FY 1998 through July 30, 2005, on minor collectors, the Division should certify that the State's obligations have not exceeded the 15 percent limit on their sub-allocation of STP funds (from TEA-21 or the extensions) for areas of less than 5,000 population. Divisions should refer to Supplementary Table 8 and/or consult with the Fiscal Management Information System (FMIS) team in the Finance Division of the Office of the Chief Financial Officer.

Eligibility

The STP continues to provide flexible funding that may be used by States for projects on any Federal-aid highway. Eligible projects are listed in 23 U.S.C. 133(b). Under the provisions of 23 U.S.C. 133(b)(1), bridge projects on any public road are eligible for STP funding. In addition, carpool, pedestrian, bicycle, and safety projects, as listed in 23 U.S.C. 133(b)(3) & (4), may also be implemented with STP funding on roads of any functional classification, under the provisions of 23 U.S.C. 133(c).

SAFETEA-LU added the following additional activities to the list of projects eligible for STP funding under 23 U.S.C. 133(b):

  • Advanced truck stop electrification systems are eligible for STP funding under 23 U.S.C. 133(b)(6), as amended by Section 1113(a)(1) of SAFETEA-LU. Advanced truck stop electrification system is defined in 23 U.S.C. 101(a)(38), as added by Section 1122(b) of SAFETEA-LU, as a system that delivers heat, air conditioning, electricity, or communications to a heavy duty vehicle.
  • Projects relating to intersections that have disproportionately high accident rates, high levels of congestion, and are located on a Federal-aid highway, are eligible for STP funds under 23 U.S.C. 133(b)(12), as added by Section 1113(a)(2) of SAFETEA-LU. These projects would have been eligible under pre-SAFETEA-LU STP eligibility criteria, but SAFETEA-LU has emphasized their eligibility by specifying them in 23 U.S.C. 133(b)(12).
  • Environmental restoration and pollution abatement is eligible for STP funding under 23 U.S.C. 133(b)(14), as amended by Section 6006(a)(2) of SAFETEA-LU. Eligibility for these projects is governed by 23 U.S.C. 328, as added by Section 6006(b) of SAFETEA-LU, and includes limiting expenditures for environmental restoration and pollution abatement to 20 percent of the total cost of the reconstruction, rehabilitation, resurfacing, or restoration of the project. This same restriction was previously included in 23 U.S.C. 133(b)(14) prior to SAFETEA-LU.
  • Control of terrestrial and aquatic noxious weeds and establishment of native species is eligible for STP funding under 23 U.S.C. 133(b)(15), as added by Section 6006(a)(2) of SAFETEA-LU. Eligibility for these projects is governed by 23 U.S.C. 329, as added by Section 6006(b) of SAFETEA-LU.

Under the provisions of 23 U.S.C. 504(e), as added by Section 5204(e) of SAFETEA-LU, States may also obligate STP [or National Highway System (NHS), Congestion Mitigation and Air Quality Improvement Program (CMAQ), Interstate Maintenance (IM), or Highway Bridge Replacement and Rehabilitation (HBRRP)] funds for Surface Transportation Workforce Development, Training, and Education, as defined in 23 U.S.C. 504(e)(3). Under the provisions of 23 U.S.C. 504(e)(2), the Federal share of the cost of these activities shall be 100 percent.

The provision in 23 U.S.C. 504(a)(4), which allows a State to use up to ½ of 1 percent of their STP apportionment for tuition and direct educational expenses of employees of State and local transportation agencies at an 80 percent Federal share, has been repealed by implication with the enactment of Section 5204(e) of SAFETEA-LU. Section 5204(e) of SAFETEA-LU [to be codified at 23 U.S.C. 504(e)] now permits a State to obligate STP, NHS, CMAQ, IM, or HBRRP funds for surface transportation workforce development, training, and education at a 100 percent Federal share with no limitation on amount. Also, 5204(e) has broadened the eligible activities for development, training, and education to include not only State and local transportation agencies, but also training and professional development of surface transportation workers.

Because the limitation on STP funds for tuition and direct educational expenses of State and local transportation agencies has been repealed by implication, the FMIS program codes previously used to track these funds will no longer be used. In order to track core program funds (STP, NHS, CMAQ, IM, or HBRRP) utilized for surface transportation workforce development, training, and education under 23 U.S.C. 504(e), States are required to use the "Training" Improvement Type code for these obligations in FMIS.

Period of Availability / Obligation Limitation / Federal Share

Under the provisions of 23 U.S.C. 118(b)(2), the period of availability of the STP funds is for a period of three years after the last day of the fiscal year in which they were originally authorized, which was not changed by SAFETEA-LU. The funds are also subject to the annual obligation limitation imposed on the Federal-aid highway program.

The Federal share for STP funds remains governed by 23 U.S.C. 120. It is generally 80 percent, subject to the sliding scale adjustment. When the funds are used for Interstate projects, including projects to add high occupancy vehicle or auxiliary lanes (but excluding projects to add any other lanes), the Federal share may be 90 percent, also subject to the sliding scale adjustment. Certain safety improvements as listed in 23 USC 120(c) may have a Federal share of 100 percent, but this provision is limited to 10 percent of the total funds apportioned to a State under 23 U.S.C. 104.

If there are questions concerning the STP, please contact Larry Beidel, of my staff, on (202-366-4653).

Updated information due to the SAFETEA-LU technical corrections bill.

More Information

Contact

David Bartz
Office of Program Administration
512-536-5906
E-mail David

 
 
Updated: 12/04/2012
 

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