Federal Aid Highway Program

The Federal Aid Highway Program (FAHP) traces its roots to the Federal Aid Road Act of 1916, which defined the federal-state cooperative approach that underpins the country's highway infrastructure. The Federal Aid Highway Act of 1956 cemented this relationship and launched the modern FAHP, which has been continued or renewed through the multiyear authorization acts. In addition, since 1978, Congress has passed highway legislation as part of more comprehensive, multiyear surface transportation acts. Starting with the 1962 Federal Aid Highway Act, the FAHP has evolved from a primary focus on building the interstate system to a more complex, multimodal program that today funds a variety of functions related to surface transportation as new programs and areas of concern have been added to the FAHP.

The FAHP is an umbrella term referring to activities administered by the Federal Highway Administration (FHWA) but in cooperation with and administered by the states and their localities. Several components make up the FAHP, comprising separately funded categories of activities such as the Interstate Maintenance Program, Surface Transportation Program, Bridge Program, and Congestion Mitigation and Air Quality Improvement Program. Noncapital costs include routine maintenance (those activities required to keep the highway open for public travel), administration, law enforcement, and debt service.

Historically, the FAHP (and the associated federal-aid funding) has been focused on capital construction activities, most prominently the interstate construction program. While some funding could be used for resurfacing, rehabilitation, or restoration (3R), the emphasis was on new or major reconstruction efforts. With construction of the interstate system essentially complete, and recognition that resources at all levels of government are shrinking, the federal emphasis has shifted to include 3R, preventive maintenance, and management/operations efforts. However, most costs for nonconstruction or noncapital activities are still the responsibility of state and local governments.

The FAHP has three main characteristics: (1) funds are apportioned to the states according to a legislated formula with state transportation agencies having responsibility for implementation of FAHP projects, (2) the states are required to provide matching funds (the current federal share is 90 percent for interstate projects and 80 percent for noninterstate system road projects), and (3) federal funds can generally be spent only on designated federal-aid highways.