1. What is the purpose of this Notice? This Notice is to notify the States of the portion of National Highway Performance Program (NHPP) funds impacted by the sequestration order issued on March 10, 2014.

2. Does this Notice cancel FHWA Notice 4510.785? Yes, this Notice cancels FHWA Notice N4510.785, Sequestration of Highway Funds for the Period Beginning on October 1, 2014, and Ending on July 31, 2015, dated June 3, 2015. The revision to the Notice is required due to the full-year extension of the Federal-aid highway program under the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, Public Law (Pub. L) 114-41.

3. What is the basis of the sequestration of these funds?

1. The sequestration of funds is required pursuant to sections 251A and 256(k) of the Balanced Budget and Emergency Deficit Control Act (BBEDCA), as amended, sections 901a and 906(k)(6) of title 2, United States Code (U.S.C.). The order, which the President issued in accordance with the BBEDCA, requires that budgetary resources in each non-exempt budget account be reduced by the amount calculated by the Office of Management and Budget (OMB) in its report to Congress on March 10, 2014, entitled OMB Report to the Congress on the Joint Committee Reductions for Fiscal Year 2015 (sequestration report).

2. NHPP funds are authorized for FY 2015 pursuant to the Highway and Transportation Funding Act of 2014, Pub. L. 113-159, as amended by the Highway and Transportation Funding Act of 2015, Pub. L. 114-21, and the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. Pursuant to the sequestration report, those NHPP funds that are exempt from the obligation limitation are subject to the sequestration at a rate of 7.3 percent. Therefore, the $639,000,000 in NHPP funds exempt from obligation limitation available for FY 2015 is reduced by a total of $46,647,000.

4. How is the amount of NHPP funds sequestered for each State determined? The total sequester amount of $46,647,000 is distributed among the States in the same proportions as the funds subject to sequester were apportioned to the States for FY 2015. Each State’s portion of the total amount to be sequestered is shown in the attached table.

5. What other highway funds are subject to the sequestration? Pursuant to the sequestration report, the $100,000,000 in emergency relief funds authorized from the Highway Trust Fund in 23 U.S.C. 125 is subject to the sequestration at a rate of 7.3 percent ($7,300,000 sequester amount).

6. What actions are required? Division Administrators should ensure that this Notice is provided to the State departments of transportation.

Attachment

U.S. DEPARTMENT OF TRANSPORTATION
FEDERAL HIGHWAY ADMINISTRATION

FY 2015 SEQUESTRATION OF NATIONAL HIGHWAY PERFORMANCE PROGRAM (NHPP) FUNDS
EXEMPT FROM OBLIGATION LIMITATION PURSUANT TO THE BALANCED BUDGET
AND EMERGENCY DEFICIT CONTROL ACT, AS AMENDED, 2 U.S.C. 901a, 2 U.S.C. 906(k)(6)