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Notice
Subject
Rescission of Federal-aid Apportionments
Classification Code Date Office of Primary Interest
N 4510.578 October 1, 2008 HCF-10

  1. What is the purpose of this Notice? This Notice is to notify the States that $1,999,999,000 of unobligated Federal-aid highway funds apportioned to States are hereby rescinded as required by the Department of Transportation Appropriations Act, 2006, Public Law (Pub. L. No.) 109-115.

  2. What apportioned funds are being rescinded? In accordance with Division A of the Department of Transportation Appropriations Act, 2006, Pub. L. No. 109-115, under the heading, "(Rescission), (Highway Trust Fund)," an amount of $1,999,999,000 is rescinded from the unobligated balances of funds apportioned under chapter 1 of title 23, United States Code (U.S.C.). The rescission shall not apply to funds distributed in accordance with title 23, U.S.C., section 130(f), title 23, U.S.C., section 133(d)(1) as in effect prior to the date of enactment of Pub. L. No. 109-59, the first sentence of title 23, U.S.C., section 133(d)(3)(A), title 23, U.S.C., section 104(b)(5) or title 23, U.S.C., section 163 of as in effect prior to the enactment of Pub. L. No. 109-59.

  3. How are apportioned funds being rescinded?

    1. The rescission is being applied proportionately to States based upon the fiscal year (FY) 2006 apportionments to the States for the core apportioned programs excluding the Highway Safety Improvement Program. Table 1 shows each State's share of the total rescinded amount based upon FY 2006 apportionments for the Interstate Maintenance (IM), National Highway System (NHS), Bridge, Surface Transportation Program (STP) and Congestion Mitigation and Air Quality Improvement (CMAQ) programs, inclusive of funds programmatically distributed from Equity Bonus but excluding funds set aside for State Planning and Research and after application of penalties pursuant to section 154 of title 23, U.S.C., (Open Container Requirements), and section 164 of title 23, U.S.C., (Minimum Penalties for Repeat Offenders for Driving While Intoxicated or Driving Under the Influence), which are separate from, but impact the core programs by operation of law.

    2. The rescissions may be taken from any unobligated funds apportioned under chapter 1 of title 23, including apportionment categories authorized prior to the Transportation Efficiency Act of the 21st Century, Pub. L. No., 105-178 as amended by the Surface Transportation Extension Act, 2004, Part V, Pub. L. No. 108-310. These categories include IM, NHS, STP, CMAQ, Bridge, Recreational Trails, Minimum Guarantee, Minimum Allocation, Interstate Construction, Interstate Substitution, Consolidated Primary, Rural Secondary, and Urban System.

    3. States are encouraged to review projects funded from the older apportionment categories to determine if any of the funds can be deobligated and applied to the rescission. The States should ensure that a sufficient amount of unobligated funds is available within each program and category selected to bear the rescission. For guidance, refer to FMIS reports M28 and W10 to assist in determining the program code(s), prior fiscal years and amount to be deobligated and applied to the rescission. Once the program code(s), fiscal years and amount have been determined and submitted to the Budget Division, no obligations should be incurred by the State on the amounts identified to be rescinded.

    4. Not later than 30 days after the date of this Notice, the States must identify the amounts to be rescinded from funds apportioned under chapter 1 of title 23, U.S.C., excluding title 23, U.S.C., section 130(f), Railway-Highway Crossing; title 23 U.S.C., section 133(d)(1), STP Safety Set-aside, as in effect prior to the date of enactment of Pub. L. No., 109-59; the first sentence of title 23, U.S.C., 133(d)(3)(A), STP Suballocation to areas; title 23, U.S.C., 104(b)(5), Highway Safety Improvement Program; or title 23, U.S.C., section 163, Safety Incentives to Prevent Operation of Motor Vehicles by Intoxicated Persons, as in effect prior to the enactment of Pub. L. No. 109-59, based on the amounts shown on Table 1. The information should be submitted on the attached Table 2 to the Budget Division's official electronic mailbox, "FHWA, Budget Division."

  4. What action is required? Division Administrators should ensure that this Notice is provided to State departments of transportation.

Signature: J. Richard Capka

J. Richard Capka
Acting Administrator

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Table 1
Table 2

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