The Federal Fund Exchange is a voluntary program that allows local public agencies (LPAs) to trade their federal fund allocations with KDOT for state transportation dollars or with another LPA for local funds. This program offers flexibility to select projects and phases based on local priorities rather than federal eligibility. 

Eligible Participants 

• All counties in Kansas 
• Cities with populations over 5,000 not in a Transportation Management Area (TMA) 
  • TMAs in Kansas include the Mid America Regional Council (MARC – Kansas City Region) and the Wichita Area Metropolitan Planning Organization (WAMPO) 

Participation is optional. LPAs can choose to exchange their federal funds or use them to develop a federal-aid project following established procedures. 

Allowable Uses of State Funds 

State funds can be used for a variety of transportation improvement projects, including: 

• Roadway construction, reconstruction, or rehabilitation 
• Pavement preservation (overlay, mill/overlay, chip and seal, pavement patching, crack sealing) 
• Purchase of aggregate for specific public road sections 
• Safety improvements (signing, traffic signals, pavement marking, removal of roadside obstacles, guardrails, turn lanes) 
• Erosion protection measures in roadside ditches or around drainage structures 
• Construction or reconstruction of sidewalks, ADA ramps, or pedestrian signals 
• Replacement of deteriorated curb and gutter 
• Storm sewer repairs for positive drainage 
• Bridge construction, replacement, rehabilitation, repair, painting, or removal 
• Construction of low-water crossings 
• Improvements to transit or other multi-modal systems 

State funds can be used for all project phases, including: 

• Preliminary engineering 
• Right-of-way acquisition 
• Utility relocations 
• Construction 
• Construction inspection 

When work is performed by LPA forces, costs for labor, equipment, materials, and supplies are eligible for reimbursement. However, costs for mobilization, depreciation, profit, or overhead are not reimbursable. Detailed work records must be provided, and equipment rates should not exceed KDOT’s rates unless approved prior to construction. 

LPAs may develop projects following their own procedures, criteria, and standards, consistent with Kansas statutes and applicable regulations. Coordination with the local KDOT Area Office is required for work on state highways or City Connecting Links. 

Important Deadlines 

All Request to Exchange and Request for Reimbursement forms must be submitted to KDOT by September 15 each year. Funds not requested by this date will be forfeited. 

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