Surface Transportation Program (STP) Flexible Funding

Started in 2000, the State Transportation Board continues to make available $6.5 million annually in STP “flexible funds” statewide for qualified transit projects. STP is one of the programs within TEA-21 that is flexible in the type of projects that are eligible, e.g., highway or transit purposes. The process involves a transfer of funding from the Department’s federal highway (FHWA) account to appropriate federal transit (FTA) accounts statewide. As the State Transportation Board made this funding available for transit purposes, the STP funding is distributed only to the State’s federal transit programs and cities or regions that participate in FTA programs and have operating systems in place to utilize the funding.

For FY 2008, ADOT/MPD allocated over $900,000 of STP funding to be eligible for capital funding in the Section 5311 program, $1.5 million for the Section 5310 program, and approximately $4.1 million as pass through funding for the Flagstaff, Yuma, Tucson, Phoenix, and Prescott Section 5307 systems. STP Flex Funding is generally only available for capital projects such as vehicles and transit facilities. Depending on individual program needs, Flex Funding can offer a more favorable federal-to-local match ratio for recipients than that available with other grant programs. The Surface Transportation Program (STP) Flexible Funding Manager is Mr. Matt Carpenter.