Transportation projects within the MPO area are funded through a variety of different sources, including federal funds, but also including local and state funds.  A chart has been created that provides an overview of major transportation funding sources and expenditure types.

As a designated urban area with over 200,000 population, the MPO receives formula funds from USDOT.  There are four programs under the SAFETEA-LU transportation bill that distribute federal funds directly to the MPO:

• Surface Transportation Program (Urban) funds (STP-U) are provided to the MPO based on a population-based formula set by the Federal Government in the Transportation Bill.  The MPO receives approximately $3 M per year in these Federal Highway Administration funds, subject to Congressional budgeting and has established a process by which these funds are programmed by MPC for eligible projects within the MPO’s region.
• Section 5307 Urbanized Area (5307) are analogous to STP-U funds but are provided by the Federal Transit Administration. The amount received by the MPO is about the same as the STP-U allocation.  In March 2003, MPC designated LTD as the direct recipient of these funds thus permitting LTD to manage their allocation and expenditure, subject to the program rules.
• Job Access and Reverse Commute Program (5316) provides approximately $150,000 per year in Federal Transit Administration funds.  In November 2006, MPC designated LTD as the direct recipient.  LTD thus manages the allocation and expenditure of these funds.
• New Freedom Program (5317) provides approximately $75,000 per year in FTA funds.  In November 2006, MPC designated LTD as the direct recipient.

The State also uses its federal funds as well as state funds for transportation projects within the MPO area.  Some are used on the state highway system; others are grants awarded for specific projects subject to the originating source program’s rules.  These projects are listed in the MTIP.   The State also funds projects outside the MPO area within Lane County.  These are listed in the STIP, but since they are outside the MPO area, are not included in the MTIP.

Local governments also have Capital Improvement Programs and Operations budgets which fund transportation improvements and operations. These funds are obtained from bonds, system development charges, and other sources of local revenue.  Lane Transit District similarly has sources of local funds.