FHWA to provide states with $15 million in grants to test alternative transportation funding

Updated Mar 31, 2016

highway-traffic-generic-2The Federal Highway Administration (FHWA) has announced $15 million in grants for fiscal year 2016 available for states to test alternative revenue collection to help fund transportation projects.

“What is clear is that more investment in transportation is necessary to prepare for increasing strain on the system in the upcoming decades,” says Transportation Secretary Anthony Foxx. “A reliable funding source is at the heart of a robust surface transportation system so commuters can get to their jobs, businesses can run their operations and freight shippers can move their goods.”

The agency wants to use the Surface Transportation System Funding Alternatives (STSFA) program as a means of creating long-term solvency for the Highway Trust Fund. The program will fund projects “to test the design, implementation and acceptance of user-based alternative revenue mechanisms.”

“This program may help us identify new sources of revenue to make sure our transportation infrastructure remains strong,” said Federal Highway Administrator Gregory Nadeau.  “Now is the time to begin finding new funding solutions to be ready for the expanded travel needs of a growing population.”

The STSFA was established via the FAST Act, in Section 6020, and is only available to states or groups of states. It provides for $15 million for fiscal year 2016, and $20 million each for fiscal years 2017-2020. The grants can make up only 50 percent of the total proposed project costs.

Applications for fiscal year 2016 must be submitted by May 20 through www.grants.gov. More information is available by emailing FHWA at [email protected]. The Federal Register notice for the program is available here.