Description of an AFA

An Advance Funding Agreement (AFA) is a negotiated contract between TxDOT and a local government, another state agency or another state where both parties agree to a funding arrangement to contribute funds, labor, raw materials, or land, in order to develop or maintain a highway project required by 43 TAC §15.55.
A local government may be a:
  • city,
  • county,
  • river authority,
  • independent school district,
  • municipal utility district,
  • other local governmental agency,
  • private or public utility company,
  • railroad, or
  • other political subdivision of this state, or special district that has the authority to finance a highway improvement project.