Project Eligibility

Road projects are eligible for funding from the Surface Transportation Program (STP) and the Transportation Economic Development (TEDF) Category D funds. Transit projects are eligible for funding from the STP Rural and the federal portion of TEDF Category D money. Only road projects are eligible for state TEDF Category D funds. Road projects must be located on roads that have been functionally classified as a rural major collector or higher according to the National Functional Classification System approved by the Federal Highway Administration. Some STP-Rural money may be spent on rural minor collectors. Functional classification maps of the entire county have been provided to each county road commission. Classification maps of individual cities and villages have been made available directly to them.

STP-Rural and TEDF Category D money can only be spent on "construction costs" and "contingencies" for highway projects. Right-of-way (ROW), construction engineering (CE), and preliminary engineering (PE) costs are a local responsibility. STP-Rural funded projects require at least a 20 percent non-federal match.

Roads eligible for TEDF Category D money must be classified as rural primary or higher. If a road is not, application must be made to MDOT and the classification changed before TEDF Category D money can be used to improve the road. The road also must be designated as a "D" route by the Rural Task Force. TEDF-Category D projects must be funded with at least 20 percent of the cost coming from a non-TEDF source (i.e., STP-Rural, local, etc.) This stipulation can be waived by the Office of Economic Development if the county or city can prove economic hardship.

TEDF-Category D money is available to "create an integrated all-season network." Projects requesting TEDF-Category D funding must meet very specific criteria. This criteria can be obtain from MDOT. The contract language has also been updated to clearly state that roads improved with TEDF-Category D money will NOT be restricted for use by legally loaded commercial vehicles.

Transit projects must be eligible for Federal Transit Administration funding in order to use STP- Rural or TEDF Category D funding. Such capital items may be replacement buses and rehabilitation of existing buses, communication equipment, maintenance equipment, operational support equipment and services, items related to services under the American Disability Act, and facility renovations.

All projects must be consistent with the Michigan Transportation Policy Plan and the seven TEA-21 planning factors. Either of these documents can be obtained from MDOT.