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: