Federal share is the portion of eligible project costs paid with federal funds under a particular program or agreement.
Definition
The federal share expresses how much of a defined eligible cost base is covered by federal funds. The applicable program or agreement determines the percentage or calculation method, which costs qualify, and whether exceptions apply. A civil engineering firm may encounter the figure when a public client builds a project budget or plans the timing of design and support work. The share does not necessarily apply to every project expense, and it does not set the consultant’s fee or determine when the firm gets paid. Programs may also require a nonfederal contribution, sometimes called a match. Owners should keep the eligible cost base and the funding proportions clear in project records because assumptions can differ by program. Federal share is not a universal percentage that can be carried from one funding program to another. The Federal Highway Administration’s federal-aid overview describes federal participation in highway projects.
How owners use it
- An owner separates eligible project costs from other costs before estimating funding sources.
- A project manager tracks the federal portion and any required nonfederal contribution in the sponsor’s budget.
- If eligible costs are $1,000,000 and the federal share is 80%, then $1,000,000 × 0.80 = $800,000 in federal funds.
