Understanding Federal Funding
The City and County Five-year Federal Aid Construction Programs are funded by a combination of federal and local funds. The total federal aid portion (generally 80%) comes from five years of estimated federal funding available to the City or County through a federal transportation act.
DEFINITIONS:
Authorizations – the federal funding levels as contained in a federal transportation act. The current act is the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users SAFETEA-LU.
Appropriations Act – the annual congressional act that makes authorized funds available in the form of apportionments with specific obligation limitations (i.e., apportionments limited by an obligation limitation equals obligation authority).
Obligation Authority – the limited (by the appropriations act) funds available for projects.
The Concept
The concept of Federal Funding assistance for surface transportation facilities derives from the need to meet the ever-increasing demand of the traveling public for safe, smooth roads. Also, the traveling public expects the road appearance, signing, pavement marking, safety features, etc., to be the same wherever they go. To meet this demand across a country of diverse state and local economies, a federal program to assist in this effort is in place.