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

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