The Kansas Department of Transportation (KDOT) Federal Fund Exchange Program guidelines outline the process by which local public agencies (LPAs) in Kansas can trade their federal transportation fund allocations for state transportation dollars, providing greater flexibility in project selection and implementation. Below is a detailed explanation of the KDOT Federal Fund Exchange Program guidelines, drawing from the information in the provided document ("2025-2034 Proposed CIP.pdf") and supplemented by relevant web sources, particularly from KDOT’s official resources, as found in the search results.
Overview of the Federal Fund Exchange Program
- Purpose: The Federal Fund Exchange Program allows LPAs, such as cities or counties, to exchange their federal fund allocations with KDOT for state transportation dollars or with another LPA for local funds. This exchange provides flexibility, as state funds are subject to fewer federal regulations, allowing LPAs to prioritize projects based on local needs rather than federal eligibility criteria.
- Voluntary Participation: Participation is optional. LPAs can choose to exchange their federal funds or use them for federal-aid projects following standard federal procedures.
- Funding Availability: The amount of state funds available for exchange varies by year, depending on KDOT’s budget and program priorities.
Key Guidelines
The guidelines for the Federal Fund Exchange Program, as referenced in the document and detailed in KDOT’s resources, include the following:
1. Eligibility and Participation
- Eligible Entities: Local public agencies, such as cities, counties, or other government entities with federal transportation fund allocations, can participate. This includes agencies within Transportation Management Areas (TMAs) like the Mid America Regional Council (MARC – Kansas City Region) and the Wichita Area Metropolitan Planning Organization (WAMPO).
- Optional Participation: LPAs can decide whether to exchange their federal funds or retain them for federal-aid projects. If they choose to exchange, they can trade with KDOT for state funds or with another LPA for local funds.
- Coordination: For projects on state highways or City Connecting Links, LPAs must coordinate with the local KDOT Area Office to ensure compliance with state standards and regulations.
2. Eligible Projects
State funds received through the exchange can be used for a variety of transportation improvement projects, including:
- Roadway Projects: Construction, reconstruction, or rehabilitation of roads.
- Pavement Preservation: Activities such as overlays, mill/overlay, chip and seal, pavement patching, and crack sealing.
- Other Infrastructure: Projects that enhance transportation infrastructure, such as bridges, sidewalks, or pedestrian facilities, provided they comply with Kansas statutes and applicable regulations.
- Local Procedures: LPAs may develop projects using their own procedures, criteria, and standards, as long as they align with Kansas statutes and regulations. This flexibility is a key benefit of exchanging federal funds for state funds.
3. Reimbursement and Cost Eligibility
- Eligible Costs: When work is performed by LPA forces, eligible costs for reimbursement include:
- Labor
- Equipment
- Materials
- Supplies
- Non-Eligible Costs: Costs such as mobilization, depreciation, profit, or overhead are not reimbursable.
- Equipment Rates: Equipment rates must not exceed KDOT’s established rates unless prior approval is obtained from KDOT.
- Documentation: LPAs must provide detailed work records to support reimbursement requests, ensuring transparency and accountability.
4. Application and Submission Process
- Request Forms: LPAs must submit a Request to Exchange form and a Request for Reimbursement form to KDOT to participate in the program.
- Deadline: All forms must be submitted by September 15 each year. Funds not requested by this date are forfeited, emphasizing the importance of timely submission.
- Application Access: Applications can be downloaded from KDOT’s website, as noted in the T-WORKS program details. LPAs familiar with the program can contact the program manager directly, while those unfamiliar are encouraged to start with KDOT’s General Application process.
- General Application: KDOT encourages LPAs new to the program to begin with the General Application to ensure proper guidance and eligibility determination.
5. Funding and Exchange Rate
- Variable Funding: The amount of state funds available for exchange varies annually, depending on KDOT’s budget and federal fund allocations. The document does not specify the exact exchange rate (e.g., how much state funding is received per federal dollar traded), but this is typically negotiated based on program guidelines and available state funds.
- Example from CIP Document: The "2025-2034 Proposed CIP.pdf" shows Federal Funds Exchange allocations for the city, such as $1,315,000 in 2025 and $7,872,970 over the 10-year period (2025-2034), indicating the program’s role in funding local transportation projects. (Page 9)
6. Project Development and Oversight
- Local Control: LPAs can develop projects using their own standards and procedures, provided they comply with Kansas statutes and applicable regulations. This reduces the administrative burden compared to federal-aid projects, which require stricter oversight.
- KDOT Coordination: For projects involving state highways or City Connecting Links, LPAs must coordinate with KDOT’s local Area Office to ensure alignment with state transportation priorities.
- Minimal Oversight for Non-Federal Projects: The document and KDOT’s broader Local Projects framework note that LPAs can administer non-National Highway System (non-NHS) projects with minimal KDOT oversight if they adopt KDOT’s Local Public Authority (LPA) Project Development Manual or develop their own approved procedures.
7. Program Flexibility
- Project Selection: Unlike federal funds, which are tied to specific eligibility criteria (e.g., National Highway System projects), state funds from the exchange allow LPAs to select projects based on local priorities, such as local roads, pedestrian facilities, or pavement preservation.
- Reduced Federal Compliance: Exchanging federal funds for state funds eliminates the need to comply with federal regulations, such as environmental reviews or Davis-Bacon wage requirements, simplifying project implementation.
Application in the 2025-2034 CIP
- Funding Allocations: The "2025-2034 Proposed CIP.pdf" details the Federal Funds Exchange allocations for the city’s Capital Improvement Plan (Page 9):
- 2025: $1,315,000
- 2026: $1,317,000
- 2027: $1,800,970
- 2028: $1,000,000
- 2029: $1,000,000
- 2030-2034: $1,440,000
- CIB Totals (2025-2027): $4,432,970
- 10-Year Totals: $7,872,970
- Usage: These funds are likely allocated to transportation-related projects, such as those in the Public Works Projects (Pages 123-147) or Citywide/Non-Citywide Fix Our Streets Half-Cent Sales Tax Programs (Pages 37-109), which include street, sidewalk, and infrastructure improvements. For example, projects like the 2025 ADA Sidewalk Ramp Program (Page 7) could benefit from such funds, though its primary funding is listed as Fix Our Streets Sales Tax.
- Variance: The 2025 Proposed CIP shows a net increase of $182,970 over the 2024 Adopted CIP ($7,872,970 vs. $7,690,000), with reductions in 2025 and 2026 but an increase in 2027, reflecting adjustments in project priorities or funding availability. (Page 9)
Additional Context from KDOT Programs
- Complementary Programs: The Federal Fund Exchange Program is part of KDOT’s broader suite of local partnership programs, such as the City Connecting Link Improvement Program (CCLIP), Economic Development Program, and Transportation Alternatives (TA) Program, which also support transportation infrastructure. These programs often encourage LPAs to start with a General Application to explore funding options.
- Safety and Economic Focus: KDOT’s programs, including the Federal Fund Exchange, align with broader goals of improving safety, supporting economic development, and enhancing mobility. For example, the Safe Streets and Roads for All (SS4A) Match Pilot Program and Cost Share Program provide additional funding opportunities that may complement Federal Fund Exchange projects.
- Historical Context: The Federal Fund Exchange Program is noted in KDOT’s T-WORKS initiative, which emphasizes local partnerships to improve Kansas’s transportation system. The program’s flexibility makes it a key tool for LPAs to address local infrastructure needs efficiently.
Limitations and Considerations
- Exchange Rate Uncertainty: The guidelines do not specify the exchange rate (e.g., $0.90 in state funds per $1.00 in federal funds), which may vary annually based on KDOT’s budget and federal fund availability. LPAs must negotiate with KDOT to determine the exact amount of state funds received.
- Project Specificity: The CIP document does not list specific projects funded by Federal Funds Exchange dollars, requiring further analysis of project pages (Pages 37-147) to identify exact allocations.
- Annual Variability: The amount of state funds available for exchange fluctuates, which may affect LPA planning. LPAs must submit requests by September 15 to secure funds for the fiscal year.
- Critical Examination: While the program offers flexibility, LPAs must ensure projects align with local priorities and state regulations. Over-reliance on state funds could limit access to federal programs with higher funding potential for large-scale projects. Additionally, the forfeiture of unrequested funds by September 15 may pressure LPAs to rush applications, potentially overlooking long-term strategic needs.
Summary
The KDOT Federal Fund Exchange Program guidelines allow LPAs to trade federal transportation funds for state dollars, offering flexibility to prioritize local projects like roadway construction, pavement preservation, and infrastructure improvements. Key requirements include submitting Request to Exchange and Reimbursement forms by September 15 annually, coordinating with KDOT for state highway projects, and providing detailed cost records for reimbursement. Eligible costs cover labor, equipment, materials, and supplies, but not overhead or profit. The program’s flexibility reduces federal compliance burdens, enabling LPAs to use their own standards. In the 2025-2034 CIP, the city allocates $7,872,970 over ten years, supporting transportation projects with a net increase of $182,970 from the 2024 plan. For further details, LPAs can access applications and guidelines at KDOT’s website (e.g., https://www.ksdot.gov).[](https://www.ksdot.gov/programs/local-opportunity-programs/federal-fund-exchange-program)
If you need a deeper dive into specific projects funded by Federal Funds Exchange in the CIP, clarification on a particular guideline, or additional KDOT program details, please let me know, and I can tailor the response further!
