Matching Funds Requirements
The law guiding implementation of the National Scenic Byways Program is in Section 162, Title 23 of the United States Code; 23 U.S.C. 162. Subsection (f) governs the matching share:
(f) FEDERAL SHARE - The Federal share of the cost of carrying out a project under this section shall be 80 percent, except that, in the case of any scenic byway project along a public road that provides access to or within Federal or Indian land, a Federal land management agency may use funds authorized for the use by the agency as the non-Federal share.
Thus, there must be a minimum of 20 percent in matching funds for the project. This matching requirement can be satisfied in whole or in part with State, local government, private sector, Federal land management agency or Indian tribe funds. Additionally, third party in-kind donations can be credited toward the State or Indian tribe’s share of the project cost.
Guidance on matching requirements for Federal Highway Administration (FHWA) funded grants and subgrants, including National Scenic Byways Program grants, has been issued by the FHWA. To provide more comprehensive and consolidated guidance that reflects current statutory and regulatory requirements, this guidance establishes uniform Federal-aid policy guidance for matching Federal-aid highway program projects. Please see: http://www.bywaysonline.org/news/2010/2190.
Sources for the 20-percent Matching Funds
State Government
State funds are defined under 23 U.S.C. 101(a):
(33) STATE FUNDS. - The term “State funds” includes funds raised under the authority of the State or any political or other subdivision thereof, and made available for expenditure under the direct control of the State transportation department.
Local Government
As counties, parishes, cities, towns, townships and other units of local government are subdivisions of a State, the definition of State funds is apropos for local funds. Thus, local funds include funds raised under the authority of a unit of local government and made available for expenditure under the direct control of a local agency or department.
Private Sector
Private funds that have been donated to the State pursuant to State law for general transportation purposes are considered to be “State funds” for Title 23 purposes and may therefore be applied to the State’s matching share. Private funds that have been donated to an Indian tribe may also be applied to the matching share.
Federal Land Management Agency or Indian Tribes
Funds authorized for use by a Federal land management agency, including such funds available to an Indian tribe or Tribal government can be used as the matching share for a project that is located along a public road that provides access to or is within Federal or Indian land.
These funds may include funds appropriated to a Federal land management agency. They may also include funds made available to a Federal land management agency under the Federal Lands Highway Program, 23 U.S.C. 204 and paragraph 1101(a)(9) of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, P.L. 109-59.
In-Kind Contributions
All in-kind contributions or donations must meet the same requirements as if the item is being paid for with byway funds (i.e., the costs must otherwise be eligible for National Scenic Byway Program funds). If the project is funded, then the value and the source of the in-kind or non-cash match must be documented and supported in the project records when carrying out the project.
Allowed In-Kind Contributions
| Source | Property, Materials | Services |
|---|---|---|
| An Individual or a Private Entity | Allowed | Allowed |
| Local Government | Allowed | Allowed |
| Indian Tribe (Submitting through the State) | Allowed | Allowed |
| Indian Tribe (Submitting directly to FHWA) | Allowed | Not allowed |
| State Government | Allowed | Not allowed |
| Federal Agency | Not allowed | Not allowed |
In general, indirect costs are allowable only if a State or Indian tribe has an approved indirect cost rate approved by the Federal Highway Administration division office.
The value of third party in-kind contributions or donations may be accepted as the State or Indian tribe match when they are directly associated with the byway project and the period during which it is undertaken. Third party donations include services, property, materials, and equipment. The donations must not have been used as a match for any other Federally funded project. Donated services may be accepted from private sources and local government agencies; 23 U.S.C. 323. (http://frwebgate6.access.gpo.gov/cgi-bin/TEXTgate.cgi?WAISdocID=029026430509+0+1+0&WAISaction=retrieve)
Documenting Breakdown of the 20-percent Project Match
The Budget Section of the electronic application provides space to include information on the description, source, type, and amount of the match. All parts of the match must be identified in this section.
Source - Who is providing the match?
Type - Is it cash, materials, property, and/ or non-government services?
Description - What cash, materials, property, equipment, and/or non-government services are being provided? What is the value of the in-kind donations, and how was the value determined?
The value of in-kind donations is determined as follows:
Services - Donated services for specialized services pertinent to the execution of the funding award must be valued at a rate equivalent to that rate ordinarily paid for work in the project applicant’s organization. If the project applicant does not have employees performing similar work, the rates will be consistent with those ordinarily paid by other employers for similar work.
General volunteer labor must be valued at a general volunteer rate, unless the volunteer is performing a specific specialized service (see above). The value is based on the type of labor or service provided as a donation, not the volunteer’s normal wage rate. For most volunteer rates, see the rates from Independent Sector: http://www.independentsector.org/programs/research/volunteer-time.html. For Specialized Skills Donated, see rates from the Bureau of Labor Statistics: http://www.bls.gov/bls/blswage.htm.
Materials - The donation will be valued at the fair market value of the materials and/ or supplies at the time of the donation.
Property - The current fair market value of property donated may be counted as a matching share. The title of the land passes to the State or Indian tribe that has jurisdiction over the land on which the project is located. If any part of the donated property was purchased with Federal funds, only the non-Federal share of the property may be counted as the donation.
