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Funding |
The funding for transportation plans and projects comes from a variety of sources including the federal government, state governments, special authorities, assessment districts, local government contributions, impact fees, and tolls. In most metropolitan areas, federal funding is transferred first to the state to be distributed to metropolitan areas, and is considered to be the primary funding source for plans and projects. The Federal Highway Administration (FHWA) sources of funding are sent to and administered by the Virginia Department of Transportation (VDOT) which allocates the money based on local priorities and needs to urban and rural areas. Most transit funds for urban areas are sent directly from the Federal Transit Administration (FTA) to the transit operator. Transit funds for rural areas are administered by the Department of Rail and Public Transportation (DRPT).
On August 10, 2005, President Bush signed into law the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, commonly called SAFETEA-LU. SAFETA-LU will provide funding for project construction, transit programs, and planning activities from 2005 to 2009. |
| How do these funding processes affect the MPO? |
| These various funding procedures determine the way MPOs receive funding from federal sources. For example, Congress authorizes the use of federal funds for transportation planning purposes. These are called metropolitan planning funds, available from FHWA and FTA programs. The total amount of planning funding available equals one percent of the total amount of highway program funding appropriated in congressionally defined categories. A formula has been developed to apportion these funds to each state on the basis of that state's urbanized population as a ratio of the nation's total urbanized area population. MPOs can use these funds for all eligible planning activities. The federal match for these funds is 80 percent, unless the Secretary of Transportation determines that increasing or decreasing this contribution is warranted. |
| How is federal funding used? |
| There are many federal-aid transportation programs that support transportation activities in metropolitan areas, each having different requirements and program characteristics. The Federal-aid Highway Program is a reimbursable program. That is, even though the authorized amounts are "distributed" to the states, no cash is actually disbursed at this point. Instead, states are notified that they have federal funds available for their use. Projects are approved and work is started; then the federal government reimburses the states for costs as they are incurred, reimbursing up to the limit of the federal share. The federal government holds funding recipients accountable for complying with all applicable federal laws. When local governments directly oversee a federally funded project, the state DOTs are responsible for the local government's compliance with federal laws. |
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