The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Sound Transit under programs of the federal government for the year ended December 31, 2025.The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Sound Transit, it is not intended to and does not present the net position, changes in net position or cash flows of Sound Transit. Expenditures reported on the Schedule are presented on the accrual basis of accounting. Timing may differ from financial statements based on the timing of when expenditures have met all allowability criterion. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. CFR Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Sound Transit utilizes local funds prior to requesting reimbursement from federal funds. Upon receipt of federal funds, Sound Transit reimburses local funds that were utilized for expenditures for federal programs. Expenditures incurred before a federal grant is executed are included as Federal Award Expended on the Schedule in the year the grant is executed.
Sound Transit has elected not to use the 10-percent de minimis indirect cost rate as allowed by CFR 200.214.
Sound Transit’s total federal loan portfolio is $4.2 billion. As of December 2025, Sound Transit drew a total of $3.9 billion of its TIFIA loans, which completed draws for East Link ($1.3B), Lynnwood Link ($657M), Federal Way Link ($629M), and Downtown Redmond Link ($521M). Outstanding federal loan draws include $154 million for Sounder RRIF and $79 million for the NE 130th Street/Pinehurst Station. As of December 31, 2025, Sound Transit had total outstanding TIFIA borrowings of $3,934 million. There are no continuing compliance requirements related to any of the TIFIA loan agreements.
Pursuant to the Single Audit Act and Uniform Guidance Compliance Supplement, the federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. Accordingly, non-monetary financial assistance is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between the state and federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance.
The Single Audit Act and Uniform Guidance establish criteria to be used in defining major federal financial assistance programs. Major programs for Sound Transit are those programs selected for testing by the auditor using a risk assessment model, as well as certain minimum expenditure requirements, as outlined in Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes.
Sound Transit does not have any federal awards passed through to subrecipients as of December 31, 2025.