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February 27, 2009
RE: Stimulus Transportation Funding News

Dear Mayor:
The Federal Highway Administration has released its official guidance on the economic recovery funding for highway funding.

Many of you have questions about what the funds can be used for.  Here’s the answer from the Federal Highway Administration (FHWA):  Funds may be used for restoration, repair, construction and other activities eligible under the Surface Transportation Program (STP) as defined within 23 U.S.C. 133(b), and for  passenger and freight rail transportation and port infrastructure projects eligible for assistance under subsection 23 U.S.C. 601(a)(8).

We know that many of you have been right in the middle of working with the state on allocation of this funding.  The National League of Cities and the National Association of Counties met with FHWA representatives yesterday to talk through some of the issues and NLC hopes to have FHWA at its Congressional Cities Conference for a session on implementing the infrastructure dollars in the economic recovery program.  If you have heard that the states will make the determination on projects for metropolitan areas for the first round of funds, that is due to the tremendous pressure FHWA is putting on them to get money out there or risk losing funds to another state.  NLC will be happy to pass along any other issues you may be facing or find any further information you might need based on activity in our state. 

NLC also met with DOT Secretary LaHood this week who is very interested in hearing how the intergovernmental partnership is working and what your experiences are in making this transportation funding flow.  Please send us your stories – good and bad – and we will forward them to NLC, so we can track the successes of the stimulus.

Click here for various transportation components of the Recovery Act and U.S. DOT websites that you can visit for further information.  Please pay close attention to the “Stipulations” column to see which categories might be able to assist you and your constituents.

After reviewing this information, please direct your questions and comments to Jon Moran at 609-695-3481, ext. 121.

Very truly yours,

William G. Dressel, Jr
Executive Director



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