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Transportation Funding Allocation Under ARRA: A Guide for Effective Utilization

Explore the allocation of funds under the American Recovery and Reinvestment Act for transportation projects. Learn about deadlines, eligibility criteria, suballocation, and reporting requirements for highway and transit initiatives. Get insights into the decision-making process and how to ensure effective utilization of allocated funds to maximize impact. Stay informed and compliant with the guidelines outlined for highway and transit projects under the ARRA.

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Transportation Funding Allocation Under ARRA: A Guide for Effective Utilization

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  1. American Recovery and Reinvestment Act:Transportation Elements East-West Gateway Council of Governments February 25, 2009

  2. Funding • Highways - $27.5 billion • Transit – $8.4 billion • High Speed Rail Corridors and Intercity Rail Passenger Service - $8 billion • Supplemental Discretionary Grants - $1.5 billion

  3. Deadlines to Obligate Highway Funds • For first 50% of highway funding • States – 120 days • MPOs – 1 year • For second 50% of highway funding • States – 1 year • MPOs – 1 year • Clock starts when funding apportionments are made to the states (within 21 days of enactment)

  4. Highway Funds Eligibility • Activities eligible in the current Surface Transportation Program (USC 23 Sec. 133) • Passenger and freight rail transportation and port infrastructure (USC 23 Sec. 601(a)(8) • 3% of funds to be used for transportation enhancements • New requirement: Projects that can be completed in 3 years and are located in economically distressed areas (high unemployment, low income, economic adjustment problems) get priority

  5. Deadlines to Obligate Transit Funds • For first 50% of funds – 180 days • For second 50% of funds – 1 year

  6. Transit Funding • Transit capital assistance ($6.9 billion) • 80% for formula capital grants distributed by formula • 10% to non-urbanized areas • 10% to fast growing and high-density states • Fixed guideway investments ($750 million) • Discretionary capital investment grants ($750 million) • No operating funds for large urban areas

  7. Transit Funding Eligibility • Capital projects and capital maintenance • Planning • Transit enhancements

  8. Highway Funding Suballocation • Suballocation to Transportation Management Areas (>200,000 population)and other areas of the state • Missouri TMAs: St. Louis, Kansas City, Springfield • Illinois TMAs: Chicago, St. Louis, Peoria, Rock Island, Rockford • No Congestion Mitigation and Air Quality funds • Suballocation of Transportation Enhancement funds questionable

  9. ARRA Funds Available to Region • Missouri highways • MoDOT program - $164.0 million • Local program - $58.7 million • Illinois highways • IDOT program - $61.3 • Local program - $8.1 million • Transit program • Transit capital - $45 million ($4 million to MCT) • Fixed guideway - $1.9 million

  10. Reporting Requirements • Expenditures • Jobs created • Changes in employment levels • Initial report in 90 days and updates after 180 days, one year, two years and three years

  11. The Decision-Making Process • Program projects in the TIP – February Board of Directors meeting • Applications submitted 2/13/2009 • Evaluation process completed 2/21/2009 • Recommendations 2/24/2009 • Board meeting 2/25/2009 • Public meetings and air quality conformity 3/2009 • Provisional projects • Close project monitoring

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