Federal Aid Highway Program
The Federal Aid Highway Program (FAHP) currently is a primary source of funding for construction of Arizona highways, roads and streets. Most of the funding falls into several core programs, including Interstate Maintenance (IM), Bridge program, National Highway System (NHS) program, Surface Transportation Program (STP), Highway Safety Improvement program (HSIP) and Congestion Mitigation and Air Quality (CMAQ). The FAHP is financed from the transportation user-related revenues deposited in the Federal Highway Trust Fund, and the primary source of those revenues is federal excise taxes on motor fuels, along with excise taxes on tires, trucks and trailers and truck use taxes.
The FAHP is a reimbursement program. Once projects are approved in advance by the Federal Highway Administration (FHWA) and federal funds obligated, the federal government reimburses states for costs as they are incurred. With few exceptions, federal reimbursements must be matched with state or local funds. For most projects in Arizona, the federal share is 94.3%, and the state/local share is 5.7%.