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Federal Highway Administration Funding Programs

National Highway Performance Program (NHPP)

The purpose of the NHPP is (1) to provide support for the condition and performance of the National Highway System (NHS); (2) to provide support for the construction of new facilities on the NHS; and (3) to ensure that investments of Federal-aid funds in highway construction are directed to support progress toward the achievement of performance targets established in a State's asset management plan for the NHS. The FAST Act directs FHWA to apportion funding as a lump sum for each state, then divide that total among apportioned programs. In California, Caltrans uses these funds to support the State Highway System.

Surface Transportation Block Grant Program (STBG)

STBG provides flexible funding that may be used by states and localities for projects to preserve and improve the conditions and performance on any federal-aid highway, bridge, and tunnel projects on any public road, pedestrian and bicycle infrastructure, and transit capital projects. Funds from this program are intended to be directed to projects and programs for a broad variety of highway, road, bridge and transit work. Under the FAST Act, STBG eligibilities are continued, with some additions and modifications. In Orange County, OCTA directs these funds to be used for freeway improvements and interchanges, roadway widening, signal installations, road rehabilitation, and planning studies.

STBG-Transportation Alternatives (TA)

The TA provides funding for programs and projects defined as transportation alternatives, including on- and off-road pedestrian and bicycle facilities, infrastructure projects for improving non-driver access to public transportation and enhanced mobility, community improvement activities, and environmental mitigation; recreational trail program projects; safe routes to school projects; and projects for planning, designing, or constructing boulevards and other roadways largely in the right-of-way of former Interstate System routes or other divided highways. In California, the TA is used to fund the Active Transportation Program (ATP) that is administered by the California Transportation Commission (CTC) and the California Department of Transportation (Caltrans).

More information on the State ATP can be found at dot.ca.gov/hq/LocalPrograms/atp.

STBG-Highway Bridge Program

STBG provides a set-aside of funding made available for bridges through the State HBP Program. The state issues a call for projects for these funds which can be found at dot.ca.gov/hq/LocalPrograms/hbrr99.

Highway Safety Improvement Program (HSIP)

HSIP provides funds to reduce traffic fatalities and serious injuries on all public roads, including non-State-owned public roads and roads on tribal lands. The HSIP requires a data-driven, strategic approach to improving highway safety on all public roads that focuses on performance. Additionally the HSIP has two set-aside programs: The Railway-Highway Crossings program that provides funds for safety improvements to reduce the number of fatalities, injuries, and crashes at public railway-highway grade crossings and the Safety Related programs set-aside for safety related activities. In California, these funds are used by Caltrans for the State Highway System. A portion of these funds are distributed through the Caltrans HSIP call for projects.

Caltrans - dot.ca.gov/hq/LocalPrograms/hsip.

Congestion Mitigation and Air Quality Improvement Program (CMAQ)

The CMAQ Program is continued in FAST Act to provide a flexible funding source to state and local governments for transportation projects and programs to help meet the requirements of the Clean Air Act. Funding is available to reduce congestion and improve air quality for areas that do not meet the National Ambient Air Quality Standards for ozone, carbon monoxide, or particulate matter (nonattainment areas), and for former nonattainment areas that are now in compliance (maintenance areas).

Funds may be used for transportation projects likely to contribute to the attainment or maintenance of a national ambient air quality standard, with a high level of effectiveness in reducing air pollution, and be included in the MPO’s current transportation plan and transportation improvement program, or the current STIP in areas without an MPO. In Orange County, OCTA directs these funds to transit and high occupancy vehicle lane projects and a ten percent set-aside for bike and pedestrian projects.

Metropolitan Planning Funds

Planning funds are distributed to the state departments of transportation and then to Metropolitan Planning Organizations (MPOs) to conduct planning activities that establish a cooperative, continuous, and comprehensive framework for making transportation investment decisions in metropolitan areas. Program oversight is a joint FHWA/FTA responsibility. In Southern California, these funds are distributed to the Southern California Association of Governments (SCAG).

National Highway Freight Program (NHFP)

The NHFP was established under FAST Act with the intention of improving the efficiency of the movement of freight on the National Freight Network. Under the new formula-based program, eligible activities or costs include construction, operational improvements, freight planning, and performance measures. This program focuses on highway improvements. Ten percent may be used for rail, port, and intermodal projects. Beginning in FFY 2017-18, states will be required to have freight plans in order to obligate NHFP funds. In California, this program is referred to as the California Freight Investment Program (CFIP).

More information can be found at catc.ca.gov/programs/CFIP.

Fostering Advancements in Shipping and Transportation for the Long-term Achievement of National Efficiencies (FASTLANE)-competitive

FASTLANE provides on a competitive basis, financial assistance to nationally and regionally significant freight and highway projects that align with the program goals. Formal guidance on how the funds will be distributed are being developed.

More information can be found at dot.ca.gov/hq/tpp/offices/ogm/fastlane.

OCTA receives direct apportionments through the CMAQ and STBG programs. More information on how OCTA uses these programs can be found through the following link.

The Capital Programming Policies were approved by the OCTA Board of Directors on December 13, 2021 and can be found here.