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Financing Federal-Aid Highways


1 A technical correction act to the TEA-21 was included as Title IX of P.L. 105-206, the Internal Revenue Restructuring and Reform Act of 1998, enacted July 22, 1998. Title IX is cited as the "TEA 21 Restoration Act."

2 The Legislative Reorganization Act of 1946.

3 Although there are additional steps between committee approval and consideration on the floor of Congress, such as passing through the Rules Committee in the House, they are omitted for brevity.

4 These activities are authorized in Titles I and V of the TEA-21. For the purposes of this report, activities in Title I or V not administered by the FHWA are not considered part of the FAHP. See Appendix C for a list of authorizations by Title. Although the Motor Carrier Safety Program is administered by FHWA, it is funded under a separate budget account and is not included as part of the FAHP in this document.

5 23 U.S.C. 144(e).

6 P.L. 105-178, Sections 1118 and 1119.

7 23 U.S.C. 135(c) and 23 U.S.C. 134(f).

8 Although authorization amounts are set in the TEA-21, Congress also established a "trigger" to keep highway authorizations in tune (aligned) with estimated revenues (highway user taxes paid into the Highway Account of the Highway Trust Fund). As a result, beginning in FY 2000, TEA-21 requires that authorizations be adjusted up or down to reflect changed revenue estimates. This "revenue aligned budget authority" provision is discussed in more detail in the "Appropriations" section.

9 P.L. 105-178, Section 1224.

10 23 U.S.C. 104(b).

11 23 U.S.C. 118(a).

12 P.L. 93-344, Section 401(d)(1)(B).

13 23 U.S.C. 121.

14 23 U.S.C. 104(a). Also, 23 U.S.C. 104(h) provides for an up to 1.5 percent takedown from the Recreational Trails Program to cover the cost for administration of and research and technical assistance under the Recreational Trails Program and for administration of the National Recreational Trails Advisory Committee.

15 P.L. 105-277.

16 Ibid.

17 23 U.S.C. 104(f)(1).

18 23 U.S.C. 104(f)(2). The funds must be made available by the States to MPOs designated to carry out provisions of 23 U.S.C. 134.

19 23 U.S.C. 104(d)(1).

20 23 U.S.C. 104(d)(2).

21 23 U.S.C. 118(a).

22 23 U.S.C. 505(b).

23 23 U.S.C. 133(d)(1) and (d)(2).

24 23 U.S.C. 133(d)(3)(A).

25 23 U.S.C. 133(d)(3)(B).

26 P. L. 105-178, Section 1108(f).

27 23 U.S.C. 133(d)(3)(A).

28 23 U.S.C. 144(g)(3). A Federal-aid highway is any highway eligible for Federal assistance under Chapter 1 of Title 23 other than a highway classified as a local road or rural minor collector.

29 P.L. 105-178, Section 1101(b).

30 23 U.S.C. 105.

31 23 U.S.C. 118(b)(2).

32 Ibid.

33 23 U.S.C. 144(e).

34 23 U.S.C. 106(a).

35 23 U.S.C. 120.

36 23 U.S.C. 120(a).

37 23 U.S.C. 120(b).

38 23 U.S.C. 120(e).

39 23 U.S.C. 143.

40 P. L. 105-178, Section 1116(c).

41 23 U.S.C. 120(c).

42 P.L. 105-178, Section 1302(2).

43 23 U.S.C. 121(b)

44 23 U.S.C. 323.

45 23 U.S.C. 120(k).

46 23 U.S.C. 133(e)(5)(C)(ii).

47 23 U.S.C. 120(l).

48 23 U.S.C. 121(c).

49 P. L. 101-453.

50 P.L. 105-178, Section 8103.

51 P.L. 105-178, Section 1102(b). Certain programs authorized prior to TEA-21 are also exempt.

52 P.L. 105-178, Section 1102

53 P.L. 105-178, Sections 1102(c)(1) and (2).

54 P.L. 105-178, Section 1102(c)(3).

55 P.L. 105-178, Section 1102(c)(4).

56 P.L. 105-178, Section 1102(c)(5).

57 P.L. 105-178, Section 1102(e)

58 P.L. 105-178, Section 1102(f).

59 P.L. 105-178, Section 1102(c)(6).

60 P.L. 105-178, Section 1102(d).

61 P.L. 93-344, enacted July 12, 1974.

62 Balanced Budget and Emergency Deficit Control Act of 1985 and Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987.

63 As estimated in OMB mid-session review of FY 2000 Budget, released June 28, 1999.

64 The time period and the coverage of the spending caps has been modified several times since enactment of the BEA1990.

65 The BEA1990 set a single cap for all discretionary spending. Subsequently, the Budget Enforcement Act of 1997 broke the discretionary cap into three segments--defense discretionary spending, violent crime reduction spending, and all other discretionary spending, with the Federal-aid Highway Program falling in the last category. The TEA-21 established separate discretionary spending caps for the highway and transit programs. The firewall for defense spending will expire at the end of FY 1999 unless it is extended, and the violent crime reduction category is eliminated after FY 2000.

66 23 U.S.C. 110.

67 The Federal-aid Primary and Secondary Systems were the roads eligible for Federal assistance at the time.

68 A portion of the fuel excise tax (4.3 cents per gallon) will continue to be imposed after that date, but it will not be credited to the Highway Trust Fund.

69 The Surface Transportation Assistance Act of 1982 provided that one-ninth (about 1 cent per gallon) of the fuel tax revenue would be deposited in the Mass Transit Account. This provision has been amended several times. Effective October 1, 1997, the deposit to the Mass Transit Account is 2.86 cents per gallon of most taxable highway motor fuels.

70 Effective January 1, 1987, the Leaking Underground Storage Tank Trust Fund was established and an additional tax of 0.1 cent per gallon on highway and other fuels was dedicated to this fund.

71 In the case of gasohol and certain other alcohol blends, the 2.5 cents per gallon continues to be directed to the General Fund.

72 Motor Carrier Safety Act of 1984; codified in 49 U.S.C. 521.

73 26 U.S.C. 9601.

74 26 U.S.C. 9503(f).

75 The Byrd Amendment is named for Senator Harry Byrd of Virginia who was a member of the Senate Finance Committee at the time the Highway Revenue Act of 1956 was being debated. His concern for the future solvency of the Highway Trust Fund led to the amendment of the bill.

76 26 U.S.C. 9503(d).

77 This is a rare occurrence. The last such action was in 1980 when an additional $1.4 billion in liquidating cash was provided by the Supplemental Appropriations and Rescission Act, 1980 (P.L. 96-304).

78 26 U.S.C. 9503(c).

Table of Contents

Electronic version of Publication No. FHWA-PL-99-015

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