120-day Redistribution of Highway Infrastructure Investment Funds Pursuant to the American Recovery and Reinvestment Act of 2009
Frequently Asked Questions:
Q: When will the redistribution take place?
The redistribution will take place 120 days following the date of apportionment. The date of apportionment is March 2, 2009; therefore, the redistribution will take place on June 30, 2009.
Q: What funds are excluded from the 120-day redistribution?
Funds sub-allocated within each State are excluded from the 120-day redistribution. Funds sub-allocated within each State encompass funds for urbanized areas with populations over 200,000 (program code C230), funds for areas with populations equal to or less than 200,000 (program code C200), and funds for rural areas with populations under 5,000 (program code C250).
Q: What funds are included in the 120-day redistribution?
Funds available for use in any area (program code C240) and funds for transportation enhancement activities (program code C220) are included in the 120-day redistribution. Funds for transportation enhancement activities are included in redistribution because they are a set-aside and are not sub-allocated.
Q: How will FHWA determine what amount of funds, if any, will be withdrawn from a State?
Before June 30, 2009, 50% of the funds apportioned to a State (excluding funds sub-allocated within the State) must be obligated under a project agreement. Any portion of the 50% of funds that is not obligated will be withdrawn and redistributed.
The calculation to determine the amount of funds to be withdrawn from a State for 120-day redistribution is as follows:
Note that no funds will be withdrawn if the calculation yields a negative amount. See Attachment 1, which shows the funds subject to redistribution 120 days following apportionment.
Q: What will be the effect of transfers on the 120-day redistribution calculation?
Funds transferred to or from an agency will be adjusted accordingly by either adding to or subtracting (respectively) from the base amount of funds originally distributed to determine the appropriate amount of funds that are subject to the 120-day redistribution provision (See Attachment 1). Agencies need to take into account the effect of the inflow of funds transferred to the agency and the outflow of funds transferred from the agency in deciding to accept or transfer funds to another agency.
Q: Of the amount of funds to be withdrawn, how will the withdrawal be split between funds for transportation enhancement activities and funds available for use in any area?
The withdrawal of funds will be split between funds for transportation enhancement activities (program code C220) and funds available for use in any area (program code C240) based on the contribution of each category of funds to the failure to obligate the 50% of total apportioned funds (excluding funds sub-allocated within the State).
For the purpose of illustration, see Attachment 2 for a few simplified examples.
Q: Which States will be eligible to receive funds in the redistribution?
Only States that have not had funds withdrawn will be eligible to receive redistributed funds in the 120-day redistribution.
Q: How will the withdrawn funds be redistributed?
Withdrawn funds will be redistributed to eligible States in the manner described in section 120(c) of division K of Public Law 110-161 (i.e., the funds will be redistributed using the same formula used for August Redistribution).
Q: What form will the funds take once they are redistributed to the States? (updated 6/22/2009)
Funds redistributed to a State will be proportionately split between transportation enhancement activities and funds available for use in any area.