TEP Funding Process
The Transportation Enhancement Program (TEP) is a federal reimbursement program, not a grant program.
The program requires the project sponsor or applicant to front the cost of the project and request reimbursement upon completion of work with progress payment requests as per agreement.
The program also requires the project sponsor/applicant to share in the cost of each project by providing a minimum matching share of at least 20% of the total project cost. To lessen the financial burden of this requirement, FHWA allows alternative sources of funding to augment the matching share. They are:
- sponsor/applicant cash
- private donations of cash to the team
- public or private donations of right-of-way that is an integral component of the project
- in-kind contributions of labor or materials that are an integral component of the project
- other federal funds (non-FHWA)
- other state funds (non-NYSDOT); or
- Legislative Initiatives (member items)
As this is a reimbursement program, the team will pay the full cost of eligible work up front and the TEP funds will then be used to reimburse a maximum of 80%. Progress payments to the sponsor are allowed.
Projects must have a total cost of at least $200,000 and federal participation will be limited to no more than $2.5 million per project.
The phases of work of a TEP project that are reimbursable are:
- studies/planning, design, construction and construction inspection conducted by either sponsor staff or contract;
- historical or archeological research by sponsor staff or contract; and
- right-of-way acquisition
Administrative costs are not reimbursable. TEP funds are not allowed to be used for operations and maintenance.
