Fuel Tax Evasion-Intergovernmental Enforcement Effort
Active
- Assistance listing
- 20.240
- Agency
-
Federal Highway Administration
Department of Transportation
- Grant awards
- 157 $13,593,054 in federal obligations
Program facts
- Also known as
- Fuel Tax Evasion
- Assistance types
-
- Project Grant
- Cooperative Agreement
- Treasury account
-
- 69-8083-0-7-401
- More information
Program details come from SAM.gov Assistance Listings. Updated . Grant award figures come from USAspending.gov.
About this program
The Department of Transportation Federal Highway Administration (FHWA) funds intergovernmental enforcement efforts to reduce federal and state fuel tax evasion through CFDA 20.240, with the most recent grant award issued August 18, 2026.
The program supports multi-agency collaboration among state and local public agencies to enhance motor fuel and highway use tax compliance and enforcement. Recent awards demonstrate concrete activities: statewide auditing and enforcement operations (such as the Midwestern Region Auditing and Enforcement Activities awarded in August 2026 for $114,030); hiring and training specialized fuel tax examiners across multi-year periods (Colorado joint project with six examiners trained over three years, $90,870); workforce development and participation in the Joint Operations Center for National Fuel Tax Compliance with the IRS (North Carolina program, $1.172 million); training and conferences on motor fuel tax collection and auditing (Arkansas, $622,800); and agricultural community outreach for transportation tax compliance (Iowa, $80,000). The program also funds research into alternative fuel vehicle tax structures and fuel shipment tracing to detect bulk tax evasion.
FHWA is the sole funding agency, having obligated $13.6 million in federal dollars across 157 awards since 2010. The program is predominantly Project Grants (99 percent of awards, 156 grants) with one Cooperative Agreement. Award cadence has been variable: 21 awards in 2023, five in 2022, four in 2025, five in 2026, and two in 2024. Combined federal and non-federal dollars obligated total $13.7 million, indicating minimal match requirements. Individual awards range from near-zero to approximately $1.5 million, with many in the $30,000 to $250,000 range; a Delaware award for statewide fuel tax evasion work reached $1.45 million.
FHWA and the IRS jointly recommend and approve projects using a scoring process that weights application completeness, enforcement potential, innovation, intergovernmental inclusion, and risk of success. Priority goes to proposals involving more than one public agency. Applicants must designate one state as lead, and selected states negotiate project agreements with FHWA requiring annual reporting and expenditure documentation.
The most recent grant opportunity (FHWA-HUTE-2023-01) posted September 14, 2023, with a due date of November 17, 2023. Eligibility is limited to state governments. The program has not posted a new opportunity since 2023; the prior opportunity cycle (FHWA-HUTE-2020-01, posted March 16, 2020, due May 22, 2020) specified 100 percent federal share with no state match and a maximum of $250,000 per project per year. No current open solicitation is visible in the source.
Objective and description
- 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
- Description
Fuel Tax Evasion-Intergovernmental Enforcement Effort
Eligibility
- Applicant eligibility
States, and the District of Columbia,
- Beneficiary eligibility
States, and the District of Columbia.
- Uses of assistance
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.
- Length and time phasing of assistance
There is no statutory expiration of the funds once awarded.
How to apply
- Criteria for selecting proposals
Applicants are encouraged to submit innovative proposals to reduce fuel tax evasion and increase collaboration and coordination among several public agencies. Priority will be given to proposals that involve more than one public agency. FHWA and the IRS will review the proposals using a scoring process that includes consideration of completeness of the application, enforcement potential, innovation, intergovernmental inclusion, and risk of success.
- 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.
- Deadlines
Not available at this time.
- Time to approval or disapproval
The approval/disapproval time will take approximately 1 month.
Grant opportunities
| Opportunity | Status | Posted | Applications due |
|---|---|---|---|
| 2023 Highway Use Tax Evasion Enforcement Grant | Closed | ||
| Highway Use Tax Evasion - Intergovernmental Efforts | Closed | ||
| Highway Use Tax Evasion - Intergovernmental Efforts | Closed | ||
| Fuel Tax Evasion Intergovernmental Grants - 2015 | Closed |
Grant awards
Latest 10 of 157 listed here. See the rest on GovTribe.
Top recipients by federal obligations
| Rank | Recipient | Federal obligations | Share |
|---|---|---|---|
| 1 | Transportation North Carolina Department | $2,387,300 | 18% |
| 2 | Delaware Department Of Transportation | $1,764,887 | 13% |
| 3 | Executive Office Of The Commonwealth Of Kentucky | $1,697,896 | 12% |
| 4 | Arkansas Department Of Transportation | $1,361,800 | 10% |
| 5 | South Carolina Department Of Transportation | $947,457 | 7% |
| 6 | VA Department Of Transportation | $794,931 | 6% |
| 7 | Department Of Transportation Arizona | $710,038 | 5% |
| 8 | Minnesota Department Of Transportation | $443,535 | 3% |
| 9 | New Hampshire Department Of Transportation | $401,405 | 3% |
| 10 | Missouri Department Of Transportation | $289,102 | 2% |
10 of 48 recipients listed here. See the rest on GovTribe.
Federal obligations by fiscal year
| Fiscal year | Federal obligations |
|---|---|
| FY2026 | $1,900,004 |
| FY2025 | $991,247 |
| FY2024 | -$93,016 |
| FY2023 | $995,997 |
| FY2022 | $2,189,635 |
| FY2021 | $1,669,105 |
| FY2020 | $2,441,785 |
| FY2019 | -$6,270 |
| FY2018 | $38,384 |
| FY2017 | $3,082,847 |
| FY2016 | $66,826 |
| FY2014 | $100,000 |
| FY2013 | $32,510 |
| FY2010 | $15,000 |
Show all 14
Quick answers
What is Assistance Listing 20.240?
Assistance Listing 20.240 is Fuel Tax Evasion-Intergovernmental Enforcement Effort, a federal grant program run by Federal Highway Administration (Department of Transportation).
What is the CFDA number for Fuel Tax Evasion-Intergovernmental Enforcement Effort?
Its CFDA number is 20.240: Assistance Listing numbers were called CFDA numbers before 2018.
How much funding has Assistance Listing 20.240 awarded?
157 grant awards under 20.240 have obligated $13,593,054 in federal funds to 48 recipients.
Who receives the most funding from 20.240?
The recipients obligated the most under Fuel Tax Evasion-Intergovernmental Enforcement Effort are Transportation North Carolina Department ($2,387,300), Delaware Department Of Transportation ($1,764,887) and Executive Office Of The Commonwealth Of Kentucky ($1,697,896).
How much did 20.240 obligate in fiscal year 2025?
Grants under 20.240 obligated $991,247 in federal funds in fiscal year 2025.
Are there open grant opportunities under 20.240?
No opportunity listed under 20.240 is open now. The latest, 2023 Highway Use Tax Evasion Enforcement Grant, was posted on September 14, 2023.
On GovTribe
See this program's full record
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