Many Federal-aid Highway programs have specific eligible transit activities identified in legislation. In addition, funds from other programs that do not have specific transit eligibility may be transferred by states – under the uniform transferability provisions of 23 USC §126 – to other Federal-aid Highway programs that do have such eligibility. If funds are transferred from one Federal-aid Highway program to another, those funds then have the same eligibility as the program that they are transferred to. For example, Interstate Maintenance (IM) funds transferred to the Surface Transportation Program (STP) would have the same eligibility as STP funds. The table in Attachment 2 shows which Federal-aid Highway programs have eligible transit activities and those programs that do not, but where funds may be transferred to another program that does have such eligibility. This table also lists federal transit programs that may be used for highway related activities.
In addition to the project eligibility identified in Attachment 2, there are other projects that support both transit and highway systems, either directly or indirectly (e.g., construction of park and ride lots, carpool/vanpool programs), that are eligible for funding under both Title 23 and Chapter 53 of Title 49, United States Code.
As with all other projects proposed for funding under Title 23 and Chapter 53 of Title 49 USC, it is important to remember that the requirements of the metropolitan and statewide transportation planning processes must be met for flexibly funded projects, including project selection requirements.
Under the transfer provisions in 49 USC §5334(h), Section 5307 Urbanized Area Formula Grant funds made available for a highway project must be transferred to the FHWA for administration under the provisions of Title 23, USC.
Under the transfer provisions first enacted under the Intermodal Surface Transportation Efficiency Act (ISTEA), Title 23 funds made available for transit projects had to be transferred to the FTA for administration under the provisions of Chapter 53 of Title 49 USC. However, under current transfer provisions in 23 USC §104(k), states may request transfer of the Title 23 funds used for transit projects to FTA for administration or have the FHWA administer the funds under Title 23 without transfer.
Following are a few important points to keep in mind when considering interagency transfers:
* Note: Because the issue of which, if any, 49 USC, Chapter 53 provisions apply to Title 23 funded transit capital projects administered by the FHWA is under consideration by DOT legal counsel, former item #3 that addressed this issue has been deleted from this attachment.