Funding Types

Transportation projects within the MPO area are funded through a variety of different sources, including federal funds, but also including local and state funds.

Federal Funding Programs Disbursed by the MPO


As a designated urban area with over 200,000 population, the MPO receives formula funds from USDOT. Programs under the Fixing America's Surface Transportation (FAST) Act transportation bill that distribute federal funds directly to the MPO:

Surface Transportation Block Grant - Urban


Surface Transportation Block Grant - Urban funds (STBG-U) are provided to the MPO based on a population-based formula set by the Federal Government in the Transportation Bill. This funding is available for all roads not functionally classified as local or rural minor collectors. Transit capital projects and bicycle-pedestrian projects area also eligible under this program. The MPO receives approximately $4 million per year in these Federal Highway Administration funds, subject to Congressional budgeting and has established a process by which these funds are programmed by MPC for eligible projects within the MPO’s region. Projects are funded through a competitive selection process, and federal share is limited to 89.73% (see 23 U.S.C. 133).

A list of projects programmed to be funded through the Surface Transportation Program (STP), a predecessor program to STBG-U, for 2016-18 can be found here.

Transportation Alternatives

Transportation Alternatives funds are allocated as a portion of STBG-U funds. These set-aside funds include all projects and activities that were previously eligible under the Transportation Alternatives Program (TAP), a program that was part of MAP-21. These projects are smaller-scale transportation projects such as pedestrian and bicycle facilities, recreational trails, safe routes to school projects, community improvements such as historic preservation and vegetation management, and environmental mitigation related to stormwater and habitat connectivity. Central Lane MPO receives roughly $200,000 in TA funds each year. Projects are funded through a competitive selection process, and federal share is limited to 89.73% (see 23 U.S.C. 133(h)).


Congestion Mitigation Air Quality

The FAST Act continued the Congestion Mitigation and Air Quality (CMAQ) program 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 (non-attainment areas) and for former non-attainment areas that are now in compliance (maintenance areas). The air quality maintenance area within the Central Lane MPO is currently in maintenance for PM10 (coarse particulate matter, a category of pollutant that includes smoke and dust), and CLMPO receives roughly $1.8 million each year to fund eligible projects through a competitive selection process. Federal share for CMAQ funds is limited to 89.73%. (see 23 U.S.C. 149)

Other Federal Funding

Funds from the following programs are utilized in the Central Lane MPO, but the MPO does not currently directly disburse these funds.

Section 5307 Urbanized Area

Section 5307 Urbanized Area (5307) are analogous to STBG-U funds but are provided by the Federal Transit Administration. The amount received for the Central Lane MPO is about the same as the STBG-U allocation. In March 2003, MPC designated LTD as the direct recipient of these funds thus permitting LTD to manage their allocation and expenditure, subject to the program rules.


Section 5309 Capital Investment Grants


Section 5309 funds are available for transit capital improvements. Funds are
administered by the FTA regional office and are granted on a project-by-project basis. Lane Transit District (LTD) anticipates receiving some Section 5309 funds during the next five years. Should these funds be available, they will be used to finance one-time capital improvements. The funding ratio for these funds is 80 percent federal and 20 percent local.


Section 5310 Enhanced Mobility for Seniors and Individuals with Disabilities


FTA Section 5310 program provides transportation services for elderly and disabled persons. The funds are allocated to ODOT for distribution to local transit agencies. The funds may go to private, non-profit organizations or to public bodies that coordinate service. ODOT is currently recommending an allocation formula based on operating miles and population. OTC will make a decision on the allocation formula when it adopts the transit section of the ODOT Transportation Improvement Program (STIP).


Section 5311 Formula Grants for Rural Areas


FTA Section 5311 funds are used to fund capital, operating, and planning needs of public transit. The Section 5311 program also provides for planning, marketing, capital assistance, purchase of service agreements, user-side subsidy projects and demonstrations, and rural connections coordinating between inter-city bus and rural public transportation operators.

Section 5316 Job Access & Reverse Commute Program

FTA Section 5316 was a program that provided approximately $150,000 per year in Federal Transit Administration funds. In November 2006, MPC designated LTD as the direct recipient. LTD thus manages the allocation and expenditure of these funds.

Section 5317 New Freedom Program


FTA Section 5317 was a program that provided approximately $75,000 per year in FTA funds. In November 2006, MPC designated LTD as the direct recipient.

State Funds


The state also uses its federal funds as well as state funds for transportation projects within the MPO area. Some are used on the state highway system; others are grants awarded for specific projects subject to the originating source program’s rules. These projects are listed in the MTIP. The State also funds projects outside the MPO area within Lane County. These are listed in the STIP, but since they are outside the MPO area, are not included in the MTIP. State funds include:

State Highway Fund


The State Highway Fund consists primarily of user fees, such as the state gas tax, license fees, and weight-mile tax. Nearly one-third of the fund is transferred to cities and counties throughout the state for street and highway improvements. Most of the remaining portion of the fund is available to the state for maintenance, state construction, and matching of federal aid funds. One percent of state highway construction funds are required by law to be used for bicycle facilities. Priorities for use of the State Highway Fund are established by the OTC. Generally, the state provides the entire eight percent match required on interstate projects and half of the 12 percent match required on federal highway-related projects.

State General Fund

The State General Fund is the source of funding for the State's Public Transit Division, including funds that it distributes to transit districts including LTD. In the past, Oregon's Public Transit Division provided some funding for capital purchases. Future state funding for capital projects is uncertain.

Keep Oregon Moving

Keep Oregon Moving, House Bill 2017, provided dedicated funding for transportation through several different measures. The funding will be used to provide additional transit funding, road and bridge repair, additional bicycle infrastructure, and incentives for electric vehicle purchases.

Oregon Transportation Investment Act (OTIA)

The Oregon Transportation Investment Act (OTIA) was initiated by the Oregon state legislature in 2001-2002 to fund highway infrastructure. To date, a total of three acts (OTIA I, II and III) have resulted in the issuance of bonds to secure revenue for projects approved by the Oregon Transportation Commission.

Capital Improvement Programs & Operations


Local governments also have Capital Improvement Programs and Operations budgets which fund transportation improvements and operations. These funds are obtained from bonds, system development charges, and other sources of local revenue. Lane Transit District similarly has sources of local funds.