TxDOT must approve a project’s request to earn program income. There must be an indication in the Highway Safety Plan (HSP) that the specific project will generate program income. This is included in the narrative portion of the project description. There also must be a clause in the grant stating that the project will earn program income and will expend it to fulfill the objectives of the grant. Recommended language for grants generating program income is as follows:

“All program income earned during the grant period shall be retained by the subgrantee and, in accordance with the grant or other agreement, shall be added to federal funds committed to the project and be used to further eligible program objectives. Program income that remains unexpended after the grant ends shall continue to be committed to the original grant objectives.”