Federal Fund Exchange
The Federal Fund Exchange from the Kansas Department of Transportation lets Kansas local agencies swap federal funds for flexible state dollars to support diverse, locally-driven transportation projects.
Funder: Kansas Department of Transportation
Due Dates: September 15, 2027: Annual deadline for Request to Exchange and Request for Reimbursement forms
Funding Amounts: Exchange rate typically $0.90 state funds per $1.00 federal funds; no fixed ceiling—varies by local allocation and project scope.
Summary: Enables eligible Kansas local agencies to swap federal transportation funds for flexible state dollars to support a wide range of locally prioritized transportation projects.
Key Information: All funds not requested by September 15 each year are forfeited.
Description
The Federal Fund Exchange program, administered by the Kansas Department of Transportation (KDOT), allows eligible local public agencies (LPAs) in Kansas to trade their federal transportation fund allocations for state transportation dollars or to exchange with other LPAs for local funds. This voluntary program provides significant flexibility, enabling participants to select and manage transportation projects based on local needs rather than being constrained by federal eligibility requirements. State funds received through the exchange can be used for all phases of transportation improvement projects, including planning, design, right-of-way acquisition, construction, and inspection. The initiative is designed to streamline project delivery, reduce administrative burdens, and maximize the impact of transportation investments at the local level.
