Surface Transportation System Funding Alternatives

Research and Development Program for grants for STSFA demonstration projects. These grants shall make up no more than 50 percent of total proposed project costs, with the remainder coming from non-Federal sources. Other Federal funds using their appropriate matching share may be leveraged for the deployment but cannot be considered as part of the STSFA matching funds, which must come from non-Federal sources unless otherwise allowed by statute. The grants are only available to States; however, groups of States can form partnerships for regional or national proposals. Section 6020 of the FAST Act authorizes the DOT to enter into agreements with State authorities to demonstrate user-based alternative revenue mechanisms. However, this solicitation requires that a State department of transportation (State DOT) serve as the lead agency for administering the program funding through the Federal-aid highway program. Another State agency or a State agency in a different State (if the project involves a group of States) may be responsible for providing day-to-day project oversight. It is expected that all relevant State agencies (e.g., Department of Motor Vehicles, Department of Revenue) needed to initiate a full-scale deployment of the proposed revenue mechanism will be actively involved in the planning and operation of the demonstration.