1. (a) Funding under the program is subject to the Texas Grant Management Standards developed by the comptroller under the Government Code, Chapter 783.
2. (b) Planning, detailed design activities, environmental, right of way acquisition, and utility adjustments are eligible costs.

3. (c) A cost is not eligible for funding under the program if it:

   1. (1) was incurred before the department authorizes work to proceed under the agreement required under §7.132 of this subchapter (relating to Project Implementation); or
   2. (2) is related to rail capacity improvements or the addition of mass transit infrastructure.
4. (d) A project may include elements that are not eligible for funding under the program. Funds used to pay for those elements do not qualify as matching funds under §7.124 of this subchapter (relating to Non-State Funding Match).

Source Note:The provisions of this §7.123 adopted to be effective October 15, 2025, 50 TexReg 6685.