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Transportation Glossary
Term Description

Flexible Funds

Federal funds that are legislatively-specified transportation funds that may be used for highway, transit or other transportation projects, as decided by regional Metropolitan Planning Organizations (MPOs) and state governments. Examples of such funds are the Surface Transportation Program (STP), the Congestion Mitigation and Air Quality (CMAQ), and FTA Urban Formula Funds. When FHWA funds are transferred to FTA, they can be used for a variety of transit improvements such as: new fixed guideway projects; bus purchases; construction and rehabilitation of rail stations; maintenance facility construction and renovations; alternatively-fueled bus purchases; bus transfer facilities; multimodal transportation centers; and advanced technology fare collection systems. When FHWA funds are transferred to FTA, they are transferred to one of the following three programs: Section 5307 (Urbanized Area Formula Program), Section 5310 (Elderly and Persons with Disabilities Program), or Section 5311 (Non-Urbanized Area Formula Program). Once FHWA funds are transferred to FTA, the funds are administered as FTA funds. In urbanized areas over 200,000 in population, the decision on the transfer of flexible funds is made by the MPO; in urbanized areas under 200,000, the decision is made by the MPO in cooperation with the state DOT; in rural areas, the transfer decision is made by the state DOT.

NDSU Dept 2880P.O. Box 6050Fargo, ND 58108-6050
(701)231-7767ndsu.ugpti@ndsu.edu