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Surface Transportation Program  & other major funding programs

Surface Transportation Program Fact Sheet

 

Overview:  

One of the bigger pots of money designated in SAFETEA-LU is the Surface Transportation Program (STP), funded at almost $35 billion.  Surface Transportation Funds can be used for any project, and they are not limited to the federal-aid highway system.  Projects include bicycle transportation and pedestrian walkways and safety improvements.  The flexibility of this category, and the fact that about one-third of it is programmed at the metropolitan level, makes it a good source of funds for bicycle and pedestrian projects.  STP funds can also be ‘flexed’ into other programs, including the new safety program (HSIP).

The Surface Transportation Program includes a 10 percent set-aside for the Transportation Enhancements Program.  In TEA-21 it also included a 10 percent set-aside for safety, but that has been moved into a separate program, the Highway Safety Improvement Program.   

Notes on other Funding programs: 

The Equity Bonus program (formerly the Minimum Guarantee program) has the same eligibility standards as the Surface Transportation Program.  The Equity Bonus program is meant to ensure that each state receives a minimum rate of return on contributions to the Highway Trust Fund, among other considerations.  Most of the funds from this program are distributed among many existing programs, (this distribution is reflected in our funding tables.)  But $2.6 billion of this funding remains in its own stand-alone program and the funding is flexible, just like the STP funds.    Other large categories, such as the National Highway System and Interstate Maintenance are used exclusively on highway building and maintenance.       

Note: Also, don’t totally give up on National Highway System dollars:  NHS-funded projects may “take into account access for other modes of transportation” and should not sever non-motorized transportation routes (US Code Title 23).  In addition, National Highway System Funds can be transferred (or ‘flexed’) into other categories, include STP, CMAQ, and Recreational Trails. 

STP Location in law: Section 1113

FHWA STP fact sheet

FHWA Equity Bonus Fact Sheet 

What’s New: Federal Program Guidance 

SAFETEA-LU made few changes to the STP program.  It expanded eligibility for STP funds to cover congested intersections with a poor safety record on a federal-aid highway.  New guidance is not expected. 

Who distributes the money?  

As with most federal funding, STP funds come through the state DOT.  The state maintains control of about 37 percent of these funds.  Of the remainder, about 62 percent are sub allocated to large urbanized areas (population over 200,000), with funding decisions resting with the Metropolitan Planning Organization (MPOs).  The rest of the funds are distributed to smaller urbanized areas, but the portions are at the state’s discretion.   

When the MPO is deciding how to spend STP dollars, they usually include projects in a Transportation Improvement Program (TIP).   The state DOT may still hold considerable influence over this process, but usually MPOs have a public involvement process for the approval of the TIP.   While every state and MPO is different, see this basic explanation of how MPOs create TIPS

The federal share for STP projects is generally 80 percent. 

Where can I learn more?  

  • See the NCBW report on how MPOs can better integrate bicycling and walking into their mission.
  • The America Bikes contact person for this program area is Bob Chauncey, NCBW.
  • Links to state and local advocacy and resources. Coming soon.

State by state funding details

The funding table gives annual average funding levels expected to go to each state for the Surface Transportation Program, less the ten percent allocated for the  Transportation Enhancements program.  

The funding actually distributed as a result of SAFETEA-LU will be higher than the authorized level in most states because of the distribution of an ‘equity bonus,’ formerly known as the ‘Minimum Guarantee.’  Most of the funds from the Equity Bonus program are distributed among many existing programs, and this distribution is reflected in the funding table for STP.  The undistributed Equity Bonus program is also listed.

 
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