The commonwealth will use a provision of the federal Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) to receive federal money to fund LexTran and TARC. The ISTEA allows states to use money spent constructing toll roads that are now part of the National Highway System to be used as credits to receive federal matching funds. Usually, states must match 20% of the federal money applied to highway and transit project; however, Kentucky will use credits accumulated through the construction of the Kentucky Turnpike and parkway system in place of the 20% state matching funds.

More information: KYTC Press Release: LexTran and TARC Public Transit Systems Receive Funding through Toll Road Monies (Nov. 12, 2003)