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Once a project is identified and an Advance Funding Agreement (AFA) is executed between the local government and TxDOT, the local government must request and obtain an authorization to proceed with the project work. Authorization is in the form of a State Letter of Authority (SLOA).

The SLOA must be issued on all local government projects. TxDOT may require up to three SLOAs issued throughout the course of a local government project that involve state or federal funding. SLOAs are required prior to the following:

  • Preliminary engineering
  • Acquisition of right of way or the accommodation of utilities
  • Initiation of advertising for construction

Costs incurred by the local government prior to the date of the SLOA are not eligible for reimbursement.

Federal Project Authorization and Agreement

A Federal Project Authorization and Agreement (FPAA) is required in addition to the SLOA for all federally funded projects. An FPAA is not required for projects that only include local and state funds.

Federal funds are authorized through an agreement between the Federal Highway Administration (FHWA) and TxDOT for reimbursement of the approved costs. The FPAA is required prior to TxDOT issuing each SLOA to a local government.

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