What’s the TIP? 

Each year, MVMPO staff develop the region’s Transportation Improvement Program (TIP). The TIP is a five-year plan for capital improvements that are candidates for federal aid. In other words, the TIP only programs projects that will potentially make use of funds authorized by the federal government. If a community is funding a project using only local resources—like a general fund appropriation, its community preservation funds, or some other non-federal grant—that project won’t appear on the TIP. On the other hand, if a community’s project is a candidate to be the recipient of federal aid, it must be included on the region’s TIP.  

The TIP programs the use of apportioned and discretionary funding administered by both the Federal Highway Administration (FHWA) and the Federal Transit Administration (FTA). The majority of programmed funds are apportioned, and only a small amount of funding is discretionary. So…what do these jargony words mean? 

Apportioned Funding 

The term apportioned refers to a sum of money that is 1) approved for use through federal surface transportation legislation; and, 2) distributed by formula. The formula included in federal legislation creates a funding ceiling for each state. Some states, like Massachusetts, have their own approved formulas to further disperse a state’s share of federal transportation apportionment throughout regions. Massachusetts takes a hybrid approach, where the state maintains authority to program some apportioned funding (for use on so called statewide projects), while the remainder may be programmed directly by a region’s Metropolitan Planning Organization (MPO) board. These MPO-controlled funds are referred to as regional target funds. The Merrimack Valley MPO, or MVMPO, typically receives the authority to program between $13 and $16 million each year of regional target funding to support local priority projects. The amount of statewide project funding in the region varies year to year based on MassDOT’s proposed project schedule. MVMPO’s board, comprised of both local and state officials, approves the programming of both statewide and regional target funding each year, but the board is more directly involved in programming regional target funding, whereas the state develops a proposed program for statewide projects.

Discretionary Funding 

The other type of federal aid, discretionary aid, is funding that states and regional bodies receive not by formula, but per federal discretion—either through competitive grant programs or through an earmark that has been written into federal surface transportation legislation by Congress. Both flavors of discretionary aid tend to be less common, but an earmark written into the Bipartisan Infrastructure Legislation (BIL) to advance the design of the Border to Boston Trail is an example of a Merrimack Valley relevant project programmed with discretionary aid. 

What kinds of projects can land on the TIP? 

Understanding this requires a move beyond the TIP of the iceberg, so to speak. Both apportioned and discretionary federal aid are packaged by federal program. Programs dictate what federal aid can be used to support. For example, the “Congestion Mitigation and Air Quality” program (CMAQ) funds transportation projects that have air quality benefits, while the Transportation Alternatives Program (TAP) funds transit and nonmotorized focus projects. Sometimes staff refer to programs as “funding colors,” but an easier way to understand programs is to think of them as wrapping paper that must be used to package federal aid. Each apportioned federal program has only so much wrapping paper that can be used. When that wrapping paper runs out, a state or region needs to find another type of wrapping paper that will work to package the same proposed federal aid project. If a wrapping paper can’t be identified with the same eligible uses for the project in a given fiscal year, then the project cannot advance. It is common for projects to be “wrapped” with multiple funding sources. In other words, some projects may be partially funded by more than one program. 

The most common programs used to package regional target projects are the Surface Transportation Block Grant (STBG—a program with very flexible project eligibilities) CMAQ, and the Highway Safety Improvement Program (HSIP). There are various other programs used for regional target funds, and an even wider array of programs applicable for statewide projects like bridges. The key thing to remember is that not every project fits every program. Congress uses this system of eligibilities to ensure that states and regions are advancing federal priorities by limiting how certain programs can be used. 

I’m confused. It seems like this post uses the word program in three different ways!? 

You are correct! In the context of federal transportation aid, the word program does indeed have various meanings, which certainly doesn’t lend itself to easy reading for the public.  

1. The word program can refer to the “funding color” or “wrapping paper” (i.e. the type) of federal aid being used to fund a project, as discussed above. 
2. The word program is also frequently used as a verb. Programming a project refers to adding a project to the TIP with the intent of obligating federal aid to spend on that project. 
3. Finally, at the macro level, the totality of programmed projects is referred to as the region’s Transportation Improvement Program—the TIP—or sometimes, just “Program.” 

It is accurate—albeit confusing—to say, “The region’s program will program several projects using several different federal funding programs.” While MVMPO staff don’t control the lexicon, we agree that it can be tough to follow. That’s why staff constantly look for new ways to explain the federal transportation aid process and are always available to help answer questions. 

How does the MVMPO develop its program of projects for regional target funds? 

Two main criteria influence the TIP’s development: readiness and transportation evaluation criteria scoring.  

Readiness 

Each year, MassDOT determines if a local project is ready to program on the TIP by coordinating across different divisions that manage projects and track compliance with various environmental and right-of-way regulations. MassDOT assigns each project a readiness year. This is the year that MassDOT believes a project will be able to advertise and spend down funds. Readiness determinations drive much of the TIP development process as it does not make sense to program a project that will not ultimately be able to make use of federal aid funding. Programming an ‘unready’ project would inhibit other projects’ funding access, squandering the potential to make use of federal aid. 

Transportation Evaluation Criteria

Projects also receive a transportation evaluation criteria score. MVMPO staff assign each project a score based on the best-known information about a project to date. Scores reflect the values of MVMPO’s board as articulated in the region’s long-range transportation plan. Last year, MVMPO’s board approved a new long-range plan entitled MV Vision 2050. Over the past few months, staff have been developing a new scoring system to align with the board’s priorities. Staff will phase in this scoring system as new projects are proposed for the TIP. Pre-existing projects will continue to make use of the old scoring system unless substantial project changes warrant a new scoring review. 

To develop a program of regional target projects, staff develop a scenario that programs as many projects as possible per year within the MVMPO’s regional target funding ceiling. When projects receive the same readiness determination and cannot be programmed in the same year, staff review the transportation evaluation criteria and program the better scoring project first. This scenario is shared with the MVMPO board for review and comment. Following edits based on the board’s feedback, MVMPO staff bring the full TIP, which includes both statewide and regional target projects to the board again. Should it be their pleasure, the board releases the draft TIP for a 21-day public comment period. Staff review any comments received with the board. The board then votes to endorse the TIP, potentially incorporating any revisions based on comments received by the public. 

What’s proposed for this year’s regional target funds? 

Recent TIP development cycles have included several high-cost regional target projects, including the Route 114 Corridor project in North Andover, Salisbury Route 1 Reconstruction project, the Georgetown Route 97 Reconstruction project, the North Avenue Reconstruction project in Haverhill, and the 133 Reconstruction project in Andover. Payment for the Salisbury project terminated in FFY24 with additional assistance of statewide funding. Last year, the readiness determination of the Route 114 Corridor project—by far the region’s most expensive project—slipped to 2025. This allowed MVMPO to program several small projects in FFY24; however, the pipeline for smaller projects has slowed leaving several high-cost projects on the docket. This means that fewer projects may be funded on the regional target side of the TIP. Each of the aforementioned projects is programmed in staff’s draft scenario beginning in their respective year of readiness except the Andover Route 133 Reconstruction project, which must slip a year due to current funding ceilings. Two additional smaller projects—the Amesbury Riverwalk/Ghost Trail Connector and Intersection Improvements at Route 1 and Merrimack Street in Newburyport—are programmed in FFY27 due to availability in that FFY. 

To ensure an adequate pipeline of lower-cost projects, staff will suggest the MVMPO board consider a design funding reserve during this cycle. While uncommon, TIP funding may be used to design projects, the caveat being that a municipality must fund the federally required 20-percent match. 

What’s a match? 

The majority of federal aid requires a match—meaning in order to access it, there must be some skin in the game from the recipient. This requirement encourages communities to remain invested in their projects and reduces the potential of frivolous use of federal aid. In Massachusetts, the state typically provides the 20-percent match; however, the state will not provide the match for any federal aid used to support design. This responsibility falls to a municipality. 

This is a lot of information! How can I learn more? 

MVMPO meetings are always open to the public. These meetings typically occur on the fourth Wednesday of the month at noon, either virtually or at MVPC headquarters in Haverhill. Interested parties may also contact MVPC’s transportation program, which staffs MVMPO, to learn more about MVMPO and its work. Staff also welcome feedback on ways to make the complex federal aid process more approachable for those who wish to be involved. Feel free to use the comment pane below to provide us suggestions …or… TIPs!