Federal Eligibility Requirements
The New Jersey Department of Transportation (NJDOT) provides funds to Local Public Agencies (LPA) for
construction projects on the federal-aid system through the Federal Highway Administration's (FHWA)
Federal-aid Highway Program. LPAs receiving federal-aid funds are responsible for administering their
projects and meeting all federal-aid requirements. NJDOT, through its Stewardship Agreement with FHWA, is
responsible for ensuring that each LPA receiving FHWA funds is adequately staffed and suitably equipped to
undertake the federal-aid projects; to provide the supervision and inspection required to complete each
project in conformance with the approved plans and specifications; and to ensure that all federal
requirements are met. These requirements are set forth in Title 23 - Highways; 48 Code of Federal
Regulations (CFR) - Federal Acquisition Regulation; and 49 CFR 18 - the Common Grant Rule.
In order to make this eligibility determination, NJDOT will assess policies, procedures, organizational
structure and internal controls of each LPA prior to the authorization of federal-aid funds. There will
be two parts to the eligibility assessment:
Each LPA seeking federal-aid funds will be asked to complete NJDOT's Division of Local Aid's
Federal Aid Highway Program Administrative Questionnaire (doc 126k). This questionnaire was developed to assess the adequacy of
an LPA's accounting controls and administrative management systems. In addition, NJDOT will meet with
each potential federal-aid recipient prior to the authorization of project funds to assess policies
and procedures of each LPA and to determine if federal requirements are adequately addressed. In
those instances where deficiencies are noted corrective action will be required prior to authorization.
The Summary of Project Management Eligibility Requirements for Locally Administered Federal Aid Highway Projects (doc 62k) can be
used as a guide by an LPA in the development and implementation of procedures for projects using FHWA
funds. This document is a summary of the federal requirements that must be met to establish an LPA's
eligibility for funds. This document is not intended to be a comprehensive list of
all federal requirements that must be met as a condition of funding authorization.
For further assistance please contact the appropriate Local Aid District Office.