Opportunity Information: Apply for 693JH621 STSFA

The 2021 Surface Transportation System Funding Alternatives (STSFA) Grants are a U.S. Department of Transportation (DOT) Federal Highway Administration discretionary funding opportunity created under Section 6020 of the Fixing America's Surface Transportation (FAST) Act of 2015 (Public Law 114-94). The program exists because the FAST Act authorized the Secretary of Transportation to enter into agreements with state authorities to test and demonstrate new ways of generating transportation revenue based on how people actually use the system, rather than relying primarily on traditional fuel taxes. In plain terms, the goal is to help states pilot user-fee or other user-based funding approaches that could support the long-term financial stability of the Highway Trust Fund as vehicles become more fuel-efficient and fuel-tax revenues become less predictable.

This opportunity is specifically designed for demonstration projects, meaning the emphasis is on practical, real-world testing of alternative revenue mechanisms. The core requirement is that the alternative mechanism uses a user-fee structure (for example, approaches that charge drivers based on mileage, time, location, congestion, or other measures of roadway use), with the broader policy objective of identifying sustainable revenue models that could eventually be scaled or replicated. The FAST Act originally provided dedicated funding for this effort through the Highway Research and Development Program, authorizing $15 million in fiscal year 2016 and $20 million per year from fiscal years 2017 through 2020 to support these demonstration grants, reflecting Congress's interest in developing workable options beyond the gas tax.

Eligibility is limited to state governments. Individual states may apply on their own, but the program also allows multi-state partnerships, which is important because many travel patterns, freight corridors, and transportation markets cross state lines. That means a group of states can collaborate on a regional or even national concept proposal if it makes sense for the type of user-based funding model they want to demonstrate. The funding instrument type is listed as "Other," and the activity category is transportation, with CFDA number 20.200, administered by DOT's Federal Highway Administration.

For the 2021 cycle, the opportunity was posted under Funding Opportunity Number 693JH621 STSFA. The notice was created on August 30, 2021, with an original closing date of November 1, 2021. The maximum award amount (award ceiling) was $4,500,000, and DOT anticipated making about 10 awards. Overall, the program is aimed at helping states move from theory to practice by funding pilots that explore how a user-based revenue system could be designed, implemented, tested with participants, evaluated, and potentially positioned as a longer-term solution for maintaining and improving the nation's surface transportation system as traditional revenue sources face structural challenges.

  • The Department of Transportation, DOT Federal Highway Administration in the transportation sector is offering a public funding opportunity titled "2021 Surface Transportation System Funding Alternatives (STSFA) Grants" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 20.200.
  • This funding opportunity was created on Aug 30, 2021.
  • Applicants must submit their applications by Nov 01, 2021. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • Each selected applicant is eligible to receive up to $4,500,000.00 in funding.
  • The number of recipients for this funding is limited to 10 candidate(s).
  • Eligible applicants include: State governments.
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