Advance funding agreements
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Advance funding agreements

In order for TxDOT to spend funds or other resources on a transportation project with a local government, both parties must first execute a written contract. An Advance Funding agreement (AFA) in which TxDOT and the local government allocate participation is the most frequently used contract for project development.  TxDOT and a local government negotiate an agreement that determines which party is responsible for conducting work, providing funding or contributing items in-kind.

TxDOT or the local government may be financially responsible for all or a portion of the work regardless of which party is responsible for performing the work.


Examples of work included in an AFA are:

  • Acquiring right of way.
  • Drafting engineering plans.
  • Providing for utility relocation.
  • Performing environmental studies and environmental mitigation.
  • Supplying construction services.
  • Providing maintenance of a transportation project.

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