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Committee backs draft FY27–FY30 TIP after discussion over mixing STBG and direct federal grants

MOJC Transportation Technical Advisory Committee · May 19, 2026
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Summary

The technical advisory committee recommended the draft FY27–FY30 Transportation Improvement Program to the policy board and spent substantial time seeking clarification after staff reported federal guidance may bar mixing FHWA formula/STBG funds administered through state DOTs with direct‑recipient federal grants such as RAISE/BUILD or SS4A.

The MOJC Transportation Technical Advisory Committee recommended approval of the draft FY27–FY30 Transportation Improvement Program (TIP) and debated a newly raised interpretation of federal grant rules that could affect how local projects use multiple federal funding streams.

Hannah Neil, associate transportation planner, reviewed the TIP and reminded members that the document must list federally funded road and transit projects, and that inclusion in the TIP is a prerequisite for funding. She summarized recent program awards, saying the policy board previously awarded surface transportation block grant (STBG) funds, transportation alternatives program (TAP) funds and carbon reduction program (CRP) funds to a set of regional projects.

After the presentation, staff and members discussed a clarification reported from a recent RPA meeting: formula funds such as STBG administered through a state DOT may not be combined with direct‑recipient federal grants that are awarded to a project as a direct recipient (for example, formerly BUILD grants, now RAISE, or SS4A implementation grants). Kent Rollson, MOJC executive director, told the committee the restriction “was news to me” and said he had asked for clarification and would share further guidance when available.

Sam, identified in the discussion as a DOT representative, clarified the distinction: "money that does not pass through us — so if you get an earmark typically will oftentimes be direct recipient" and explained that Federal Highway Administration rules appear to prevent blending certain formula funds administered by DOTs with direct‑recipient funds. Committee members said the interpretation could affect projects that expected to use multiple federal sources for the same work; members called for MOJC staff to follow up with Iowa DOT and FHWA to confirm the rules and how they should be represented in the final TIP.

The committee then moved and gave a voice vote to recommend the draft TIP to the policy board for approval; staff will submit the draft to Iowa DOT for review by June 15 and begin the public input process ahead of final TIP approval expected in July.

Why it matters: if the apparent restriction stands, project sponsors may need to rework funding strategies for projects that expected to layer local formula funds with direct‑recipient federal grants, which could change match calculations and programming in future years.

Next steps: MOJC staff will seek formal clarification from Iowa DOT and FHWA and report back to members; the draft TIP will be submitted to Iowa DOT on or before June 15 for review.