Implementation, Funding, and Evaluation
Money and authority
Federal surface transportation aid flows through apportioned formula programs (NHPP, STBG, HSIP, CMAQ, PROTECT, TAP) and discretionary grants (RAISE, INFRA/MEGA), while transit moves through urbanized-area formula funds (Section 5307), capital investment grants (5309), state of good repair (5337), and bus facilities (5339). State and local sources include fuel taxes, local option sales taxes, tolls, value capture and tax increment financing, TIFIA credit assistance, private activity bonds, and P3s. Match requirements matter: 80/20 is typical for most highway and transit capital, and 50/50 for transit operating assistance.
Delivery and evaluation
Implementation means programming in the TIP/STIP, obligating funds subject to obligation authority, clearing environmental review, acquiring right-of-way, procuring (design-bid-build, design-build, CM/GC), and constructing. Evaluation compares before-and-after conditions, tracks performance targets, and applies benefit-cost or cost-effectiveness tests.
Traps
Apportionment (a formula share of the year's authorization) is not obligation authority (the cap on commitments) - a state can be apportioned money it cannot yet obligate. CMAQ generally excludes new capacity. Deobligated balances and rescissions reappear in questions. Toll credits can be used as match.
Rule of thumb - discounting
Multiply an annual benefit by the present value factor for the discount rate and life. At 4% over 20 years the factor is about 13.6, so $3M/yr is roughly $40.8M of present value.
Worked example
A project costs $20M with annual benefits of $3M for 20 years at 4%. PV benefits ≈ $40.8M; benefit-cost ratio ≈ 40.8/20 ≈ 2.0, a favorable result.