1. Driving Indiana’s Economic Growth

2. FEDERAL FUNDING
FOR FISCAL YEAR 2010

3. INDOT/Local Federal-Aid Sharing Arrangement
Fiscal Year 2010

11. General Information
Federal funds do require a match from the LPA, that is in most cases, 20% of the eligible project cost. INDOT is required to “let” the construction phase of the project. After the award of the construction contract INDOT will bill the LPA for their 20% match or adjusted match and any non-participating (not eligible for federal funding) items. This is the only phase of the project that the LPA is required to send their 20% match funds to INDOT.
Federal funds are reimbursable by INDOT to the LPA which means the LPA must incur the expense and seek reimbursement from INDOT for the Federal portion.
Federal funds to be used on any phase of a local project must first be authorized by INDOT and FHWA before notice to proceed is given to the LPA by INDOT.