Project Readiness for Federal Fiscal Year (FFY) 2024 Federal Redistribution


Guidance on Local Program Project Readiness for Annual Federal Redistribution

WisDOT is working with local governments and organizations to identify projects that can be funded with federal fiscal year (FFY) 2024 federal redistribution funds.

What is Federal Redistribution Funding?

Federal Redistribution

Federal redistribution is an annual formula-based process occurring in August that affords a state an opportunity to request additional federal funds above their annual initial obligation limitation. These additional funds are made available when other states are unable to obligate formula or discretionary-based funds prior to the end of the federal fiscal year. A few things to note about federal fiscal year (FFY) 2024 redistribution:

  • FFY 2024 will likely have a historic amount of annual redistribution available to states.

  • Historically, states are not notified of the amount they are eligible to receive through redistribution. However, the Federal Highway Administration (FHWA) has notified the Wisconsin Department of Transportation (WisDOT) that it is eligible to request $206 million in additional obligation authority in FFY 2024.

  • To obligate these funds, the state must have federal contract authority balances in a federal aid program and have projects eligible for the individual federal aid programs with contract authority balances.

  • Funds must be obligated by the end of the FFY (September 30, 2024). Failure to do so results in serious financial implications for the state.

NewProject Readiness Intake Form

WisDOT desires to collaborate in identifying projects that can be advanced and considered for FFY 2024 Federal Redistribution funding to maximize its 2024 Redistribution funding request. To achieve this, WisDOT has developed a “Project Readiness Intake Form for FFY 2024 Redistribution” for local units of government to submit projects for evaluation and consideration for FFY 2024 Federal Redistribution funding. The intake form, available through AccessGov, does not require a login to be submitted.

  • Projects must be considered “Project Ready” and the intake form will provide WisDOT the initial information necessary to evaluate project readiness.
  • Projects must be eligible within the federally funded programs noted in the Program Availability section.

Please submit your project for consideration via the Project Readiness Intake Form for FFY 2024 Federal Redistribution no later than May 1, 2024. Confirmation of project readiness must be finalized for WisDOT no later than July 1, 2024.

  • WisDOT will conduct initial project review from April 1 – June 30, 2024 for consideration and to determine whether additional information is needed.
  • All project readiness requirements must be met by July 31, 2024, to be considered for inclusion in WisDOT's redistribution request.
  • WisDOT will conduct final considerations for inclusion into the redistribution request from July 1 - July 31, 2024.

How do you know if a project meets the “Project Readiness” requirements?

Project Readiness

A “project ready” infrastructure project is one that has completed or has nearly completed design and can move into construction quickly. Non-infrastructure projects have different requirements. Both are outlined below.

Project Readiness Requirements

The following requirements must be met by infrastructure projects to be considered ready for redistribution consideration:

  1. All design and environmental processes are either complete or will be completed by PS&E submission.
  2. Real estate is not needed or real estate will be purchased by PS&E submission.
  3. Utilities are not needed or will be clear by PS&E submission.
  4. Project must be submitted for PS&E on or before May 1, 2024. (If not possible, a June/July 1 PS&E date may be possible. Please contact WisDOT (WisDOT.Redistribution@dot.wi.gov).
  5. Confirm LET date of – August, September, or October 2024 is acceptable for the project.
  6. All projects inside a Metropolitan Planning Area must be included in the Metropolitan Planning Organization’s (MPO) Transportation Improvement Program (TIP) and the state’s Statewide Transportation Program (STIP). This process can take multiple months to complete and must be complete by August 1, 2024.
  7. A signed State Municipal Financial Agreement must be received by WisDOT by July 1, 2024.
  8. Projects are within the available programs and meet all applicable state and federal program rules. See the Program Availability section below.

Notes:

  • State LET projects will be considered for August, September, and October let dates. November lets are not being considered at this time but may be available upon special request.

  • The traditional PS&E deadline for these months is May 1, 2024. If you cannot meet a May 1, 2024, PS&E date, please contact WISDOT (WisDOT.Redistribution@dot.wi.gov) immediately to discuss options. Confirmation of project readiness must be finalized for WisDOT no later than July 1, 2024.

  • Locally let projects require separate specialized training prior to approval. You should be discuss plans for any local let with WisDOT to ensure you can meet the timelines for federal authorization.

The following requirements must be met by non-infrastructure projects to be considered ready for redistribution consideration:

  1. Sponsors must complete the Sponsor’s Guide to Non-Traditional Transportation Project Implementation Certification Training by July 1, 2024.
  2. Sponsor must complete and submit the Sponsor’s Guide training acknowledgement form by July 1, 2024.
  3. A State Municipal Financial Agreement must be signed by the local government by July 1, 2024.
  4. Inclusion in Wisconsin’s Statewide Transportation Improvement Program and, if inside a Metropolitan Planning Area, inclusion in the Metropolitan Planning Organization’s Transportation Improvement Program by August 1, 2024.
  5. Other requirements may apply based on program-specific policies. Please consult the program guidance found on the WisDOT Local Assistance Programs website.

Project Consideration Communications

WisDOT will communicate to requestors regarding consideration of inclusion of their project(s) in the state’s request for redistribution on or around August 1, 2024.

Program Availability

The WisDOT programs with contract authority balances with the most potential for local consideration are:

Although these are the federal funding programs with the highest contract authority balances, WisDOT is encouraging local governments and organizations to submit projects to WisDOT.Redistribution@dot.wi.gov, and WisDOT team members can evaluate available funding to support the projects submitted.

Program Documents

Contract Authority versus Obligation Limitation

Federal redistribution is not additional contract authority—redistribution is only additional obligation limitation. Both are needed in order to fund an improvement project with federal aid. This means that while a state may be eligible to receive a certain amount of funds through annual redistribution, their ability to request those funds will be limited by the type and amount of contract authority they have in balances.

WisDOT MUST obligate all obligation limitation received in a given year prior to the end of the federal fiscal year - this includes any received through August redistribution. If any funds are left unobligated, the unobligated funds will lapse and WisDOT will lose the opportunity to submit a redistribution request the following year.

Federal Redistribution Project Readiness Webinar (March 7, 2024)

WisDOT hosted an informational webinar regarding Federal Fiscal Year (FFY) 2024 Federal Redistribution project readiness requirements on Thursday, March 7, 2024. If you were unable to attend, the link to the recorded webinar is below:

WisDOT Contact

All requests for information should be submitted to the general redistribution mailbox.