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FHWA August Redistribution and Flex Funding Opportunity

From Ray Tillis, Regional Administrator – FTA Region 9

I am writing you with a time-sensitive update about currently available Federal funding that can support transit capital activities.  Federal transportation law allows the transfer of funds from certain Federal highway programs to Federal transit program projects.  Using this authority, about $1.5 billion has been “flexed” annually in recent years from FHWA funding programs for award in FTA grants towards transit investments.  The increased Bipartisan Infrastructure Law (BIL) funding creates additional flexible fund opportunities.  You can find more information about flexible funding on the joint FTA/FHWA transportation planning capacity building webpage on Flexible Funding.

  This message is being shared with you now because the FHWA annual August redistribution of the Federal highway program obligation limitation for fiscal year (FY) 2024 is getting underway.  During the August redistribution, FHWA provides states with additional “obligation limitation” and offers the opportunity to fund additional projects, including transit projects with flexed funds.  You can find more information about the August redistribution here FHWA Notice N4510.889.

  State Departments of Transportation (DOTs) are responsible for identifying eligible uses for their August redistribution to their FHWA Division Offices by mid-July.  FHWA estimates a State-by-State distribution totaling over $8 billion for August Redistribution.  This is an opportunity for you to identify transit capital activities that are ready for funding, and you are encouraged to coordinate with your State DOT about the possibility of “flexing” funds to FTA for eligible transit projects as a potential use of August redistribution funds.

Additionally, FTA and FHWA have update the Flexible Funding resources on our websites:

  1. Updated Transportation Planning Capacity Building (TPCB) Flexible Funding Webpage:  This site provides resources for project sponsors, localities, regions, metropolitan planning organizations (MPOs), State DOTs, and transit providers to understand how to use the flex funding provision for simplified and lower cost project delivery.  Resources include process flowcharts, FAQs, webinars, case studies, and a list of eligible flexible programs.
  2. Updated Flex Funding Brochure (PDF):  This brochure provides a high-level overview of the flexible funding program and can be useful for building interest in the program. 
  3. Flex Funding Presentation (PPT):  The presentation provides a high-level overview of the flexible funding program and can be used as a standalone presentation or added to existing presentations to share with stakeholders and increase knowledge on the flex funding process.

Please carefully consider the programs eligible for flexing funds for public transportation improvements as applicable to your circumstances.  Also, please contact your State DOT and MPO to discuss the flex funding opportunities.  We ask you to also to keep your FTA regional grant representative informed, as you proceed. 

  Thank you for your consideration of flexible funding to support transit projects.