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.Apply for 693JH621 STSFA
- 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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Surface Transportation System Funding Alternatives (STSFA) Grants (2021) - FAQs
What is the 2021 STSFA Grants program?
The 2021 Surface Transportation System Funding Alternatives (STSFA) Grants are a U.S. Department of Transportation (DOT) Federal Highway Administration discretionary funding opportunity that supports state-led demonstration projects to test new ways of generating transportation revenue based on how people use the roadway system.
Which federal agency administers this grant opportunity?
The program is administered by the U.S. Department of Transportation (DOT), Federal Highway Administration (FHWA).
What law created or authorized the STSFA program?
The program was created under Section 6020 of the Fixing America's Surface Transportation (FAST) Act of 2015 (Public Law 114-94).
Why does this program exist?
The FAST Act authorized the Secretary of Transportation to enter into agreements with state authorities to test and demonstrate new transportation revenue approaches that rely on user-based mechanisms, rather than depending mainly on traditional fuel taxes.
What problem is the program trying to address?
The program is aimed at identifying sustainable revenue models 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.
What is meant by "surface transportation system funding alternatives" in this context?
In this program, funding alternatives refer to new revenue mechanisms that are tied to actual roadway use. The focus is on user-fee structures that can be tested in real-world conditions as potential complements or alternatives to gas-tax-based revenue.
What types of projects does STSFA fund?
The opportunity is specifically designed for demonstration projects. That means it funds practical, real-world testing of alternative revenue mechanisms, including designing a pilot, implementing it, testing it with participants, and evaluating results.
What is the core requirement for the alternative funding mechanism being tested?
The core requirement is that the mechanism uses a user-fee structure, meaning charges are connected to how people use the transportation system.
What are examples of user-fee approaches mentioned for this program?
Examples include approaches that charge drivers based on mileage, time, location, congestion, or other measures of roadway use.
Is the program focused on research or on real-world pilots?
The program is focused on demonstration projects, emphasizing real-world testing and implementation rather than purely theoretical work.
Who is eligible to apply?
Eligibility is limited to state governments.
Can a single state apply on its own?
Yes. Individual states may apply independently.
Are multi-state or regional applications allowed?
Yes. The program allows multi-state partnerships, which can be useful where travel patterns, freight corridors, and transportation markets cross state lines.
Can the project concept be regional or national in scope?
Yes. A group of states can collaborate on a regional or even national concept proposal if that approach fits the user-based funding model they want to demonstrate.
What is the CFDA number for this opportunity?
The CFDA number listed for the program is 20.200.
What is the activity category for the STSFA program?
The activity category is transportation.
What is the funding instrument type?
The funding instrument type is listed as "Other."
What is the Funding Opportunity Number for the 2021 cycle?
The 2021 opportunity was posted under Funding Opportunity Number 693JH621 STSFA.
When was the 2021 funding notice created?
The notice was created on August 30, 2021.
What was the application closing date for the 2021 cycle?
The original closing date was November 1, 2021.
What was the maximum award amount for a single grant in 2021?
The maximum award amount (award ceiling) was $4,500,000.
How many awards did DOT anticipate making in 2021?
DOT anticipated making about 10 awards.
How was the program funded under the FAST Act?
The FAST Act originally provided dedicated funding 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.
What is the broader policy objective of funding these demonstrations?
The broader policy objective is to identify sustainable, user-based revenue models that could eventually be scaled or replicated as longer-term solutions for maintaining and improving the nation's surface transportation system.
How does the program relate to fuel taxes?
The program exists to help test alternatives to relying primarily on traditional fuel taxes, since fuel efficiency and changing vehicle technology can make fuel-tax revenue less predictable over time.
What kinds of outcomes is the program aiming for?
Based on the description provided, the program aims to help states move from theory to practice by funding pilots that can be designed, implemented, tested with participants, evaluated, and positioned for potential longer-term adoption or replication.
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