Working in partnership with OACES, Association of Oregon Counties (AOC), and League of Oregon Cities (LOC), the Oregon Department of Transportation (ODOT) has implemented new changes to Local Programs this year and expected changes in 2022 that are targeted to help reduce ODOT’s State Highway Fund operations and maintenance revenue and budget deficit, including:


State Funded Local Projects (SFLP) Program
State Funded Local Projects (SFLP) trades federal funds for state funds on projects selected under ODOT or Transportation Management Area (TMA) federal funding programs. Federal funds are traded at a one-to-one ratio. However, Local Agencies are still required to provide a match as determined by the applicable funding program. Eligible Projects must meet state gas tax eligibility requirements and be completely on the local system. Funded projects are those selected through All Roads Transportation Safety (ARTS), Enhance, Local Bridge, and potentially other STIP-funded programs.

**New total project cost limits:

  • $5 million for local bridge projects; and
  • $1 million for all other projects.

More on the ODOT SFLP program and overview document available HERE.


Surface Transportation Block Grant (STBG) / State Fund Exchange (FEX) Program
Coordinating STBG / Fund Exchange will now be through the central office instead of the region liaisons. If you decline Fund Exchange and take the STBG funds directly for federal-aid projects you will still need to contact your ODOT region contact and follow federal requirements. And a reminder per the tentative ODOT/AOC/LOC agreement, that the Fund Exchange Program rate will be changing from $0.94 to $0.90 cents per federal dollar starting in 2022.

More on the ODOT STBG / FEX program and overview document available HERE

ODOT has provided 2021 SFLP and STBG/Fund Exchange documents additional information, and guidance available about local programs at the ODOT Local Government Funding Overview page.