costs was restricted to one-third of such costs plus certain increases in the public land States. For projects eliminating hazards at railway-highway grade crossings, 50 percent of the right-of-way and property damage costs were reimbursable from Federal funds. Because of the difference in the Federal participating ratios between right-of-way costs and other construction costs established by the 1944 Act, it was necessary to differentiate between what was a right-of-way and what was a construction item. Since construction costs were established by competitive bidding, it was often simpler to document eligible construction costs than right-of-way costs for Federal participation. Because of this and since the States received a fixed apportionment of money, which if not used for right-of-way participation would be available for construction, most of the States did not take advantage of their ability to claim Federal reimbursement for right-of-way costs. They elected to use their Federal allotments for construction costs which were more easily substantiated.
PRA was very careful in analyzing the costs to be sure that proper reimbursement from Federal funds was made. This caused confusion and difficulty until the distinction in matching ratios was removed. However, it was not until the passage of the Federal Aid Highway Act of 1950 that the Federal share of right-of-way costs was increased to 50 percent—the same ratio then permitted for construction costs and thereby eliminated the necessity for strict delineation of costs between right-of-way and construction.
The Federal Aid Highway Act of 1954 increased the Federal participation ratio in all costs to 60 percent on projects located on the Interstate System and the 1956 Act raised this ratio to 90 percent. The participating ratio for right-of-way costs on regular Federal-aid projects and on railroad grade crossing protection projects remained at 50 percent. However, the Federal Aid Highway Act of 1970 increased the ratio on regular Federal-aid projects to 70 percent beginning in fiscal year 1974. In summary, the present Federal participating ratios in right-of-way costs are:
| Railroad Grade Crossing Projects | 50 percent |
| Regular Federal-Aid Projects | 70 percent |
| Interstate System Projects | 90 percent |
Staffing Changes With Increased Federal Involvement
Staffing requirements of the State highway departments and the Bureau of Public Roads were related to passage of highway legislation.
In the years when right-of-way was obtained without Federal participation, it was often acquired by local authorities. At the State highway department level, this activity had been handled as merely a part of the overall duties of the engineering staffs in the highway departments. Thus, few adequate State right-of-way organizations were in existence.
In the headquarters office of the Bureau of Public Roads, first right-of-way matters were handled in the Solicitor’s Office by a single attorney. After passage of the 1943 and 1944 Acts when Federal funds became available for right-of-way cost reimbursement, an appraiser and another attorney were added to the staff in the Bureau. The right-of-way staff was then elevated to branch status. A new directive governing Federal participation in right-of-way costs was issued in 1953 which required that right-of-way costs be fully documented if Federal funds were desired. The small branch in BPR was sufficient, since only a few States were willing to go to the extra work necessary to secure Federal participation in their right-of-way costs. As mentioned above, if a State were able to use all of its Federal-aid apportionment for highway construction work, there was no loss if Federal funds were not claimed for right-of-way. So there was no necessity for the States to build up their own right-of-way organizations.
With the passage of the Federal Aid Highway Act of 1956, the full impact of Federal participation in right-of-way costs was felt by the States. Interstate funds were apportioned on the basis of the cost to complete the System in each State. Therefore, each State had to claim right-of-way costs in order to obtain all the Federal funds available for its Interstate program. With Federal funds assured for right-of-way costs on the Interstate System and as highway programs moved into urban areas where right-of-way problems were complex, it was inevitable that the right-of-way organizations and procedures of both the States and BPR had to be strengthened.
By May 1957, the right-of-way staff in the BPR headquarters was expanded and raised to division level. In 1962, a separate Office of Right-of-Way and Location was formed. BPR developed and issued expanded policy and procedure memorandums governing the Federal-aid right-of-way program and established right-of-way staffs in each State and in all regional offices to provide close and continuing contact between the States and BPR. In 1963 BPR established its own right-of-way training program to assure a continuing supply of properly educated and trained personnel for right-of-way work. Thus, procedures and staff were created to assure prompt solution of problems, and controls and records were instituted to assure the eligibility for Federal aid of costs incurred by the States in the acquisition of rights-of-way.
As for the States, in 1956 two States did not have right-of-way staffs at all, and in many others right-of-way activities came under some other division. At the urging of BPR and with much assistance from AASHO, all States have made a steady improvement over the years in their right-of-way organizations by better coordination between design and right-of-way and by the establishment of advance acquisition divisions, training units, property management sections, appraisal and review appraisal groups, relocation units, environmental specialty sections, etc. The State highway departments are now effectively using right-of-way personnel from the inception of a project to its conclusion. Such practices have brought about savings of millions of dollars.
Federal Reimbursement Requirements
The Federal Highway Act of 1921 provided that the State highway departments be suitably equipped and organized to discharge their duties. With the passage of the 1956 Federal-Aid Highway Act, the Bureau of Public Roads, in order to fully ascertain
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