Fuel Tax Evasion-Intergovernmental Enforcement Effort

Fuel Tax Evasion
CFDA 20.240 Active Grant
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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$4M FY2026
$4M
FY24
$4M
FY25
$4M
FY26*
* estimated

Funded Projects

Examples of what this program has supported.

FY2025 International Fuel Tax Association (IFTA)/International Registration Plan (IRP) Annual Audit Workshops. Staff auditors attended/participated in 5 IRP/IFTA Workshops, and SC-based workshops to receive formal training on new and existing processes required to ensure that the State maintains compliance with IFTA audit requirement procedures.

Program Objective

The purpose of this program is to increase intergovernmental activities and enforcement efforts among public agencies to reduce Federal and State fuel tax evasion. Funds made available shall be used only to expand or enhance intergovernmental efforts to increase motor fuel tax enforcement and payments; to supplement motor fuel tax examinations and criminal investigations; and to increase research and training in the area of fuel tax evasion. This program is part of the Highway Use Tax Evasion program which also may provide funds to the Internal Revenue Service (IRS) for their efforts as outlined in 23 U.S.C. 143.

Eligibility

Eligible Applicants

  • U.S. State Government

States, and the District of Columbia,

Beneficiaries

  • U.S. State Government

States, and the District of Columbia.

How to Apply

Award Procedure

FHWA and IRS will jointly recommend and approve projects for Federal funding for fuel tax evasion intergovernmental enforcement efforts. States selected to receive funding will enter into negotiations with FHWA and be required to enter into a project agreement with FHWA.

The approval/disapproval time will take approximately 1 month.

Program details & compliance

Description

Fuel Tax Evasion-Intergovernmental Enforcement Effort

Mission Categories

Primary: Highways, Public Roads, and Bridges

Use of Funds

Allowed Uses

State agencies can use the funds to expand efforts to enhance motor fuel tax enforcement; to supplement motor fuel tax examinations and criminal investigations; to develop automated data processing tools to monitor motor fuel production and sales; to evaluate and implement registration and reporting requirements for motor fuel taxpayers; to reimburse State expenses that supplement existing fuel tax compliance efforts; to analyze and implement programs to reduce tax evasion associated with other highway use taxes; to support efforts between States and Indian tribes to address issues relating to State motor fuel taxes; and to analyze and implement programs to reduce tax evasion associated with foreign imported motor fuel.

Matching Requirements

Federal Share up to 100% [23 U.S.C. 143(b)(6)]

Reporting & Compliance

Records Retention
5 years

Applicable 2 CFR 200 Subparts

  • Subpart B — General Provisions
  • Subpart C — Pre-Federal Award Requirements
  • Subpart D — Post-Federal Award Requirements
  • Subpart F — Audit Requirements

Contacts

Michael Dougherty, — Office of Highway Policy Information (HPPI)
667-668-1781
1200 New Jersey Ave. S.E., Washington, DC 20590
Data from SAM.gov Federal Assistance Listings. Source published: 2026-02-04. Spec v2.0. Last synced: 2026-05-29 05:33:53.