What is FTA’s policy on pre-award authority?

In the spring of 2014, FTA extended pre-award authority for costs associated with the environmental review, as well as design and engineering expenses for selected projects. These costs may remain eligible for reimbursement or may count towards the local match, regardless of the date incurred. Pre-award authority for other costs is extended as of September 22, 2014.
Consistent with FTA policy on pre-award authority, a project must have met all applicable Federal requirements prior to incurring expenses. The recipient assumes all risk and is responsible for ensuring that all applicable federal program and grant requirements are met to retain eligibility. Recipients are also advised that incurring certain project costs prior to NEPA completion may render the entire project ineligible for Federal assistance. Therefore, FTA strongly encourages all recipients to consult with the appropriate FTA regional office regarding the anticipated environmental review requirements and the applicability of Federal conditions and requirements before incurring expenses under pre-award authority with the hope of future reimbursement.
Note that any expenses incurred for projects that were NOT selected may not be reimbursed under the Emergency Relief program, but may be eligible for reimbursement under FTA formula programs such as Section 5307.