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Funding Approval

There are various sources of funding available to the local agencies within Illinois for road and street projects. The following discusses the local financial planning for the various non-federal sources of funding (i.e., Motor Fuel Tax (MFT), Township Bridge Program, and other state-funded programs).

Depending on the type of funding source the LPA is utilizing, the processes to obtain approval for these funds varies. Please view the appropriate fund process below:

Motor Fuel Tax

Understand the Requirements

Chapter 9: Financial Planning Section 1: MFT Financing in the Bureau of Local Roads.

Navigate to Motor Fuel Tax Distribution to view reports and more information about MFT.


Joint Funding Agreements

The use of state and federal funding requires the execution of a joint funding agreement between the LPA and IDOT. This agreement identifies the location of the project, scope of work, division of cost, jurisdiction and maintenance responsibilities, and other legal requirements. This agreement will be the basis for IDOT and the LPA to obligate funds and facilitate reimbursements to the LPA for locally administered projects and the basis for billing LPA’s for their local share on IDOT administered projects.

State Funding

Understand the Requirements

How to Obtain Approval

LPA’s may receive state funding for highway related projects. Examples of state funds are Economic Development Program (EDP), Truck Access Route Program (TARP), and State Matching Assistance. State funds are included in IDOT’s annual program and must be coordinated through the appropriate district office for funding and for inclusion on the joint funding agreements established between IDOT and the LPAs.

Federal Funding

Understand the Requirements

How to Obtain Approval

Federal funding is made available to LPAs through several means. In urban areas, municipalities with populations greater than 5,000 receive a Surface Transportation Program – Urban (STU) allotment. For municipalities that are included in a Metropolitan Planning Organization (MPO), which has populations greater than 50,000, the MPO receives the STU allotment, and the various municipalities compete through the MPO for funding. In rural areas, counties receive Surface Transportation Program – Rural (STR) funds and Surface Transportation Program – Bridge (STP-Br) funds. Municipalities are also allowed to request use of these STP-Br funds.  

All of these funds and projects must be coordinated through the appropriate IDOT district office for funding and for establishment of the joint funding agreements between IDOT and the LPAs. It is important to note that with federal funds, these funds must be authorized through the Federal Highway Administration (FHWA) before work can actually begin. Failure to obtain this federal authorization first may jeopardize IDOT’s ability to reimburse the LPA for eligible federal expenses.