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Memorandum

DOT Logo   U. S. Department of Transportation
  Federal Highway Administration

 

Subject: Guidance on Transfer Provisions Contained in the Intermodal Surface Transportation Act of 1991 (ISTEA)

Date: June 26, 1992

From: Director, Office of Fiscal Services

Reply to:
Attn of: HFS-31

To: Associate Administrators
Regional Administrators
Division Administrators

 

The ISTEA provides a significant amount of flexibility in the use of apportioned funds by permitting states to transfer funds between apportionments. Additionally Section 1100 provides that selected unobligated funds from prior Acts may be transferred to the new programs contained in ISTEA. It should be noted that funds may not be transferred both into and out of an appropriation within the same Fiscal Year. Guidance relating to the transfer provisions is provided below.

TRANSFER OF UNOBLIGATED BALANCES

Section 1100 of the ISTEA provides that certain unobligated funds remaining from apportionments made before October 1, 1991, may be transferred to certain apportionments made after October 1, 1991. These are as follows:

  • Primary System Funds may be transferred to the National Highway System (NHS) and/or the Surface Transportation Program (STP). Funds transferred into STP are not subject to sub-allocation and will be transferred into the state flexible appropriation code (33D).
  • Secondary System Funds may be transferred to STP. These funds are not subject to sub-allocation and will be transferred into the state flexible appropriation code (33D).
  • Urban System Funds, both attributable and non-attributable, may be transferred to STP. As required by 23 U.S.C. 150, the appropriate Metropolitan Planning Organization must approve the transfer of attributable funds. These funds are not subject to sub-allocation and will be transferred into the state flexible appropriation code (33D).

It should be noted that the lapse date for the transferred funds is 3 years after the Fiscal Year in which they were originally authorized.

Regional Administrators may approve these transfers (this may be delegated). A copy of the approval, the State's request, and the attached form must be provided to HFS-31.

TRANSFER OF NATIONAL HIGHWAY SYSTEM FUNDS.

  • Up to 50% of a State's NHS funds may be transferred to STP upon the request of the State.

    Regional Administrators may approve these transfers (this may be delegated). A copy of the approval, the State's request, and the attached form must be provided to HFS- 31.
  • Up to 100% of a State's NHS funds may be transferred to STP if approved by the Secretary of Transportation as being in the public interest. Additionally, States must provide notice to the public of the intent to request the transfer and give the public sufficient opportunity to comment.

    The State's request, along with the attached form and the Regional Administrator's recommendation, should be forwarded to the Director, Office of Fiscal Services for coordination and submission to the Federal Highway Administrator for approval.

National Highway System funds transferred to STP are not subject to the sub-allocation and will be transferred to the state flexible appropriation code (33D).

TRANSFER OF BRIDGE REPLACEMENT AND REHABILITATION. RAIL/HIGHWAY CROSSING. HAZARD. ELIMINATION FUNDS. AND STP SAFETY FUNDS.

  • Up to 40% of a State's Bridge funds, apportioned under 23 USC 144 may be transferred to the NHS and/or STP. Funds transferred into STP are not subject to sub-allocation and will be transferred to the state flexible appropriation code (33D).
  • To comply with the requirements of 23 USC 144(g)(3), the funds provided under Appropriation Code 117, the 15% minimum for Off-system bridges, may not be transferred without a determination that the State has inadequate needs to Justify such expenditures.
  • For unobligated balances of funds from apportionments made before October 1, 1991, States may continue to transfer Bridge funds to the Rail/highway Crossing, and Hazard Elimination Programs (HES), however, the fiscal year identity must not be lost. That is, 1990 bridge funds may be transferred to the 1990 HES program but not into the 1991 HES program.
  • The Rail/Highway Crossing and Hazard Elimination funds apportioned under 23 USC 130 and 23 USC 152 may continued to be transferred as in the past.
  • Of the funds provided by 104(b)(3) for safety programs:
    • 40% of the funds available for the Rail/highway Crossing Program and
    • 40% of the funds provided for the Hazard Elimination Program safety programs may be transferred between the two safety programs or to the bridge apportionment. Funds transferred to bridge will be placed into appropriation 114 and be available for either on or off system bridges.
    • Up to 100% of a State's safety funds may be transferred if approved as being in the public interest and with the assurance from the State that the purposes of the program have been met.
  • Regional Administrators may approve these transfers (this may be delegated). A copy of the approval, the. State's request, and the attached form must be provided to HFS-31.

INTERSTATE MAINTENANCE

  • Up to 20% of a State's Interstate Maintenance funds may be transferred to NHS and/or STP. Funds transferred into STP are not subject to sub-allocation and will be transferred to the state flexible appropriation code (33D).

    Regional Administrators may approve these transfers (this may be delegated). A copy of the approval, the State's request, and the attached form must be provided to HFS-31.
  • Up to 100% of a State's Interstate Maintenance funds may be transferred to NHS and/or STP if the State certifies that the funds are in excess of its needs for resurfacing, restoring or rehabilitating Interstate System routes and the State is adequately maintaining the Interstate System. The Secretary of Transportation must accept the certification before the transfer can be made. Funds transferred into STP are not subject to sub-allocation and will be transferred to the state flexible appropriation code (33D).

    The State's request, along with the attached form and the Regional Administrator's recommendation, should be forwarded to the Director, Office of Fiscal Services for coordination and submission to the Secretary for approval.

INTERSTATE CONSTRUCTION

  • A State (other than Massachusetts) may transfer an amount equivalent to the Federal share of the cost to complete its open-to-traffic Interstate segments included in the 1991 Interstate Cost Estimate (ICE) from its Interstate construction funds to NHS and/or Interstate Maintenance apportionments. Upon approval of the transfer, the work on which the transfer is based will be removed from the 1991 ICE and will lose its IC fund eligibility.

    The State's request, identifying the specific work to be removed from the ICE, along with the attached form and the Regional Administrator's recommendation, should be forwarded to the Director, Office of Fiscal Services for coordination and approval.

If you have any questions concerning these transfer provisions please contact the Program Analysis Division (HFS-30) on FTS 366-2906.

/s/

Peter J. Basso

Attachment
Worksheet for Review of Fund Transfers

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