Advanced Funding Agreements (AFA) are coordinated between the local government and the affected district. Once executed, RRD will obligate any funds needed per the terms of the AFA. An AFA is typically executed to cover design and/or construction by local agencies for civil work funded by Section 130. Any railroad work on the project is typically handled by a TxDOT Section 130 agreement between TxDOT and the railroad company and shall be referenced, but the amount not part of the local government AFA.

For off system work covered by SOW only, a no cost or similar AFA shall be executed between TxDOT and the local government prior to federal obligation.