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Transferability of Apportioned Funds Between Programs Questions & Answers

Posted 6/13/2013

Question 1: What provision governs transfers of funds apportioned under MAP-21 between programs?

Answer 1: Section 126 of title 23, United States Code, as amended by section 1509 of MAP-21, governs transfers of funds apportioned under MAP-21 between programs.

Transfers between the following programs are covered under this provision:

  1. National Highway Performance Program (NHPP);
  2. Surface Transportation Program (STP);
  3. Highway Safety Improvement Program (HSIP);
  4. Congestion Mitigation & Air Quality Improvement Program (CMAQ); and
  5. Transportation Alternatives Program (TAP).

Question 2: Which apportioned funding sub-categories are excluded from transfer eligibility (both transfer in and transfer out)?

Answer 2: Exclusions of some apportioned funding sub-categories are explicitly listed in section 126, while others exclusions are intended to harmonize the set-aside provisions and section 126 based upon Congressional direction to set-aside or use funding for certain purposes. Program codes for apportioned programs under MAP-21 and whether the funding category is eligible for transfer under section 126 is located on the 23 U.S.C. 126 transfer eligibility table (Attachment 1).

Question 3: What is the maximum amount eligible for transfer under section 126?

Answer 3: The maximum amount authorized to be transferred from a program under section 126 is not to exceed 50% of the amount apportioned (net of set-asides to fund other programs) for such program. The not to exceed 50% calculation is based on the apportioned amount after any set-aside for State Planning & Research (SPR), after any set-aside for TAP, and after the Recreational Trails Program set-aside for TAP. The not to exceed 50% calculation is also after assessing any penalties under sections 154 and 164 (incorporating any penalty shift election by the State) since that assessment reduces the amounts made available for the programs by operation of law. The determination of the maximum amount eligible for transfer for each program is as follows:

  • NHPP: 50% of NHPP apportionment net of TAP set-aside, SPR set-aside, and section 154/164 penalties.
  • STP: 50% of STP apportionment net of TAP set-aside, SPR set-aside, and section 154/164 penalties.
  • HSIP: 50% of HSIP apportionment net of TAP set-aside and SPR set-aside.
  • CMAQ: 50% of CMAQ apportionment net of TAP set-aside and SPR set-aside.
  • TAP: 50% of TAP amount net of Recreational Trails Program set-aside.

Question 4: What are some illustrative examples of how the maximum amount eligible for transfer is determined and applied?

Answer 4: The following are two illustrative examples of the determination of the maximum amount eligible for transfer and how that maximum is applied.

Example 1:

Assume that the total HSIP apportionment for a State is $150,000,000. Also assume that the amounts set aside for SPR and TAP are $3,000,000 and $3,200,000, respectively. This example assumes no set-aside of HSIP funds for high risk rural roads under the provision in section 148(g)(1) of title 23, United States Code.

Therefore the HSIP apportionment net of the SPR and TAP set-asides is $143,800,000 ($150,000,000 less $3,000,000 SRP less $3,200,000 TAP) and this is the amount contained in program code MS30.

Under this illustrative example, the total amount of HSIP funding that may be transferred to another transfer-eligible apportioned program code is $71,900,000 (50% of $143,800,000 in HSIP funding net of the SPR and TAP set-asides). The HSIP funds that may be transferred up to the 50% transfer limit are the HSIP funds in program code MS30 (i.e., up to $71,900,000 of the $143,800,000 in HSIP funding made available under program code MS30 may be transferred).

Example 2:

Assume that the total CMAQ apportionment for a State is $100,000,000. Of that total CMAQ apportionment, assume that the amount required to be obligated on PM 2.5 projects is $19,000,000 (contained in program code M003). Also assume that the amounts set aside for SPR and TAP are $2,000,000 and $2,100,000, respectively.

Therefore the CMAQ apportionment net of the SPR and TAP set-asides is $95,900,000 ($100,000,000 less $2,000,000 SRP less $2,100,000 TAP). The CMAQ funding contained in program code M400 is $76,900,000 ($100,000,000 less $2,000,000 SRP less $2,100,000 TAP less $19,000,000 PM 2.5).

Under this illustrative example, the total amount of CMAQ funding that may be transferred to another transfer-eligible apportioned program code is $47,950,000 (50% of $95,900,000 in CMAQ funding net of the SPR and TAP set-asides). The CMAQ funds that may be transferred up to the 50% transfer limit are the CMAQ funds in program code M400 (i.e., up to $47,950,000 of the $76,900,000 in CMAQ funding made available under program code M400 may be transferred).

Question 5: How does a State request a transfer between apportioned programs under 23 U.S.C. 126?

Answer 5: To request a transfer between apportioned programs, the State should submit a completed FHWA transfer request form to the FHWA Division Office indicating the type and amount of funds to be transferred. The Division Office must determine if the requested transfer is within the allowable limits as described in this guidance, indicate concurrence with the State's request, and submit the request to the Office of Budget (HCF-10) for coordination of action.

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