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If an FTA grantee receives ARRA funds from FHWA, can the funds be transferred to FTA?
Yes, if the funds are Surface Transportation Program (STP) funds.
Can FHWA funds transferred to FTA be used for operating expenses?
No. FTA will follow current Surface Transportation Program (STP) transfer rules which say Federal highway and public transportation statutes include provisions that permit certain categories of funds to be used for either highway or transit purposes. Flexible fund programs include:
(1) Surface Transportation Program (STP), 23 U.S.C. 133;
(2) Equity Bonus Program, 23 U.S.C. 105;
(3) Interstate Maintenance Program, 23 U.S.C. 119;
(4) Highway Bridge Replacement and Rehabilitation Program, 23 U.S.C. 144;
(5) National Highway System Program, 23 U.S.C. 104(c);
(6) Substitute Highway Program, 23 U.S.C. 103(d); and
(7) Congestion Mitigation and Air Quality Improvement (CMAQ) Program, 23 U.S.C. 149.
Although these Federal Highway Administration (FHWA) programs have intermodal flexibility, there are limitations on the uses of some funding. For example, recipients may not use STP funds for operating assistance on public transportation projects; however, recipients may use STP funds for any public transportation capital project.
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