Fund Braiding Best Practices

An Introduction to Fund Braiding

According to the Federal Transit Administration (FTA), fund braiding for local match allows grant recipients to use funds from one federal program to meet the match requirements of another.  Section 200.306(b) of Title 2, Code of Federal Regulations, prohibits federal fund braiding for local match “except where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to matching or cost sharing requirements of other Federal programs.”  FTA has 3 programs that have explicit statutory authority to accept non-U.S. Department of Transportation (DOT) federal funding as local match, these programs are: 



1. FTA’s formula grants for rural areas program (Section 5311)

 49 U.S.C. 5311(g)(3)(D)

(D) may be derived from amounts appropriated or otherwise made available to a department or agency of the Government (other than the Department of Transportation) that are eligible to be expended for transportation

2. FTA’s enhanced mobility of seniors and individuals with disabilities formula grants program (Section 5310)

49 U.S.C.5310(d)(3)(B)

(B) may be derived from amounts appropriated or otherwise made available—

(i) to a department or agency of the Government (other than the Department of Transportation) that are eligible to be expended for transportation

3. FTA’s urbanized area formula grants program (Section 5307)

49 U.S.C.5307(d)(1)(D)

(D) from amounts appropriated or otherwise made available to a department or agency of the Government (other than the Department of Transportation) that are eligible to be expended for transportation

Per the U.S. House of Representatives report, the match leveraged by other federal investment increases “coordination among Federal agencies that provide transportation services.” [H.R. Rep. 109-203, Jul. 28, 2005]. 

FTA leads the Coordinating Council on Access and Mobility (CCAM), a federal interagency council that works to coordinate funding and provide expertise on human services transportation. The CCAM Federal Fund Braiding Guide provides information on acceptable Federal fund braiding arrangements on transportation-related projects. The guide examines whether Federal fund braiding is allowable for 61 of the 130 Federal programs across the CCAM agencies that may fund transportation. On October 11, 2024, the Office of Management and Budget (OMB) provided clarification the Council on Federal Financial Assistance (COFFA) on the use of federal funds to meet cost sharing requirements, directly in line with the CCAM Federal Fund Braiding Guide.

Aaron E. Henry Community Health Services Center, Inc. Fund Braiding Best Practices

This Best Practices Spotlight Article describes how a regional health center receives multiple federal grant funds for transportation services and incorporates fund braiding. This model may pave the way for others to federal fund braid and use Health Resources and Services Administration (HRSA) enabling services funding as the local match to their FTA Section 5311 grant.

The Aaron E. Henry Community Health Services Center, Inc. (AEH), headquartered in Clarksdale, Mississippi, provides healthcare services to residents of the Mississippi Delta, including primary and preventative care, social services, nutritional education, and much more.  The “more” includes public transportation!

The Delta Area Rural Transit System (DARTS), operated by AEH, opened in 1990 with two minivans that offered transportation to people who needed medical care.  Rural General Public Transportation was added in 1992, and the agency began working with the Mississippi Department of Transportation (MDOT).  In 1993, DARTS received funding from MDOT.  Today, DARTS operates 46 multi-passenger vehicles that connect people with jobs, shopping, childcare, human services agencies, and more throughout seven counties.

AEH is a Section 330(e) Federally Qualified Health Center (FQHC) that was incorporated in 1979 in honor of Dr. Aaron E. Henry, an African American pharmacist who served as a State Representative and civil rights activist from Clarksdale, MS. Original funding for AEH came from the Department of Health and Human Services (DHHS).  Currently, the Center receives annual FTA Section 5311( Formula Grants for Rural Areas) and Section 5310 (Enhanced Mobility of Seniors and Individuals with Disabilities) funding.  It has the distinction of being the only FQHC in the nation that receives Section 5311 funding.

Antionette Gray, Transit Director, has led the Aaron E. Henry Community Health Services Center’s public transit services since 2000.  She has been instrumental in helping AEH obtain additional funding for transit through a rural development community grant, an FTA Innovative Coordinated Access and Mobility (ICAM) Grant, and various other sources. The agency’s Regional Transportation and Maintenance Center is funded through the United States Department of Agriculture (USDA) Rural Development, FTA, Community Transportation Association of America (CTAA), Mississippi State Department of Energy, and American Recovery and Reinvestment Act (AARA) funding.  The Maintenance Center is a stellar accomplishment for AEH as it is a statewide facility and employs certified maintenance trainers.

Another recent initiative that was funded by MDOT was a regional website for Delta Rides, a network of non-profit organizations that provides transportation services within the Mississippi Delta region and coordinates with AEH.

In addition to direct grants, strategic partnerships have helped AEH develop unique transportation services to enrich the community.  Antionette considers an ongoing partnership with the Mississippi Department of Rehabilitation to be one of her greatest accomplishments.  Through a program with Ability Works and Sephora (a large retailer in beauty products), individuals with developmental disabilities are provided transportation from their homes to job training at the Sephora factory located in Olive Branch, Mississippi in Desoto County.  For the first month, the Department of Rehabilitation pays for the client rides for this program, and then DARTS establishes fares.  Through this type of partnership and funding support, many individuals with developmental disabilities in multiple regions of the state have been able to ride public transit to gain skills and begin a new career and become self-sufficient with independent living resources.

Another unique employment transportation opportunity came through FedEx, who needed to provide transportation to its workers both in Mississippi and Tennessee.  AEH was able to coordinate private over-the-road to accomplish this goal.

The Mississippi Department of Mental Health provides support to DARTS through Section 5310 funding.  The Mental Health agencies receive the funding and pay AEH to provide transportation services to their clients.  AEH receives Section 5311 funding from the State DOT, as well as annual funding from the State Multimodal Program.  Section 5311 funding covers DARTS administrative, capital, and operations costs, such as staff salaries, insurance, etc.  The local match is funded by a variety of businesses and partners, even casinos.

DARTS rider fares are sometimes paid by the Department of Human Services, Medicaid, or Medicare. Seniors who use DARTS often receive transit services through supplements offered by the North Delta Planning and Development District.

Several of the grants that AEH receives are used as fund braiding for local match for its Section 5311 grant, including funding from the Department of Rehabilitation, Department of Human Services, and Medicaid.  The funds from the Aaron E. Henry Community Health Services Center itself can also be considered fund braiding for Section 5311 because AEH is a Federally Qualified Health Center.  Shirley Wilson, MDOT Public Transit Division Director, has worked with AEH since 1992 to ensure that the center has the types of funding it needs, its contracts follow the proper process, and AEH has capacity in terms of vehicles and drivers to fulfill its program goals.  MDOT also provides training and technical assistance and helps AEH develop new programs. The DOT works with an Interagency Transportation Committee to put AEH in contact with other transit providers and foster partnerships. “Fund braiding has been a lifesaver for this agency,” states Shirley, “because obtaining local match is always a challenge.”

Shirley calls the agency a trailblazer!  “They are innovative, take so much initiative, and go far beyond the purpose of their agency to branch out wherever they see a great need.  There are so many pockets of high poverty within the Mississippi Delta and people were missing appointments.  If a person can’t get to their healthcare provider, it doesn’t serve its true purpose. The Aaron E. Henry Community Health Services Center used tremendous foresight to see those needs and make those connections.” 

The Mississippi Public Transportation Association (MPTA) has honored DARTS staff with Appreciation Awards and Humanitarian Awards throughout the years.  AEH, along with other Delta Rides Coordination Group partners, also hosts a Community Transportation Day every July.  This free community event showcases the great work of the drivers and includes complimentary blood pressure screenings, rides, vendors, and a proclamation from the mayor.  AEH partners with a local church, who donates the space.

Antionette meets regularly with MDOT managers to discuss AEH and DARTS goals, objectives, and accomplishments.  “The Aaron E. Henry Community Health Services Center is first and foremost a health center,” explains Antionette, “and transportation is one of its integral services to promote health and wellness.   We strive to provide health services not just to our clients, but to all residents in the community.”  One of its highly successful programs is Rides to Wellness.  This program’s goal was to decrease emergency room visits for a population that is largely on Medicaid.  AEH received FTA ICAM funding and partnered with hospitals and regional groups to establish the service, which reached its goal by a decrease of 15% in emergency room visits.

While it may seem daunting to administer so many diverse grants, it is worth the effort to be able to offer such robust public transportation throughout an entire region.  When Antionette first began her role, she did not have grant writing or grant management experience, but she stated that she was trained by whom she considers to be the best grant writer in the world, Aurelia Jones-Taylor, CEO of AEH.  She explains, “It is still challenging to write so many full grants each year.  Over the years, knowing when each grant is due helps you to prepare.  If you maintain good records and data, it becomes easier to administer multiple grants.  You need to set goals, recognize accomplishments, and be able to apply it to your vision for your transit system.”