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FHWA recently sent the attached email to the RAC community confirming that FHWA contributions to pooled fund efforts will require an 80/20 match moving forward.
FHWA Contributes $20k: DOT state match required = $5k
FHWA Contributes $1m: DOT state match required = $250k
With lower match funding levels, the problem is less about securing the match funding and more about having a process in place to secure those funds. With higher match funding levels, it becomes significantly more difficult to secure funding, even if there is a process in place to do so. Securing these larger matching funds on top of the standard contribution and extra lead state effort will likely create a significant deterrent when it comes to accepting FHWA contributions to a pooled fund.
In response, Iowa has developed a survey (questions attached) to better understand where fellow RAC members stand on alternative ways to generate the non-federal match for FHWA contributions to pooled funds. The goals are to:
1. Provide a snapshot of non-federal match occurrences to help the RAC community better understand this potential funding hurdle for pooled funds moving forward.
2. Discover avenues that states have utilized to secure non-federal funds.
3. Determine the likelihood of participating states sharing the non-federal match with the lead state.
Brian Worrel Research Program Manager 800 Lincoln Way Ames, Iowa 50010 United States Phone: United States E-Mail Address:Brian.Worrel@iowadot.us