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Transportation Enhancements (TE) activities are federally funded, community-based projects that expand travel choices and enhance the transportation experience by improving the cultural, historic, aesthetic and environmental aspects of our transportation infrastructure. TE projects must be one of 12 eligible activities and must relate to surface transportation.

For example, projects can include creation of bicycle and pedestrian facilities, streetscape improvements, refurbishment of historic transportation facilities, and other investments that enhance communities and access. The federal government provides funding for TE projects through our nation’s surface transportation legislation.
Generally, the federal government will reimburse up to 80 percent of a TE project cost. Not all types of project expenses are reimbursable, however. The remaining 20 percent of the project cost is generally the responsibility of the project sponsor. The sponsor may generate these "matching funds" from a variety of sources. The value of donated materials, services and land; funds from other state or non-DOT federal programs; the value of local and state government services, and the value of preliminary engineering prior to project approval may be counted towards the matching requirement in most states.
 
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Transportation Enhancement Awards