![]() |
TEA-21 - Transportation Equity Act for the 21st Century Moving Americans into the 21st Century |
| |
TEA-21 Home | DOT Home | Fact Sheet Index |
MINIMUM GUARANTEE | |||||||
Year |
1997(ISTEA) |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
Authorization1 |
$5,732M2 |
$5,467M |
$5,743M |
$5,781M |
$5,904M |
$5,995M |
$6,122M |
Program Purpose
The Minimum Guarantee provides funding to States based on equity considerations. These include specific shares of overall program funds and a minimum return on contributions to the Highway Account of the Highway Trust Fund.
Calculation
TEA-21 specifies for each State a specific share of the aggregate annual funding for Interstate Maintenance (IM), National Highway System (NHS), Bridge, Congestion Mitigation and Air Quality Improvement (CMAQ), Surface Transportation Program (STP), Metropolitan Planning, High Priority Projects, Appalachian Development Highway System, Recreational Trails, and the Minimum Guarantee itself. The percentage shares were pegged to result in a 90.5 percent return using data available at the time of enactment. [1104(a)]
The percentage shares are adjusted each year to ensure that each States share of apportionments for the specified programs is at least 90.5 percent of its percentage contributions to the Highway Account based on the latest data available at the time of the apportionment. The shares of States falling below that minimum return will be increased and the shares of the remaining States will be decreased so that the shares continue to total 100 percent. [1104(a)]
No State may receive less than $1 million per year in Minimum Guarantee funds. [TRA 9002(d)]
Administration of Funds
Each State's share of the first $2.8 billion of Minimum Guarantee funds is administered as STP funds except that the STP requirements for the setaside of funds for safety and transportation enhancements and the suballocation of funds to sub-State areas do not apply.
Each States share of the remainder is divided among certain programsIM, NHS, Bridge, CMAQ, and STPbased on the share the State received for each program under the program formulas. [1104(a), TRA 9002(d)]
Budgetary Controls
Nationwide, $639 million per year of Minimum Guarantee apportionments are exempt from the Federal-aid Highway Program obligation limitation.
An additional $2 billion annually receives an equivalent amount of special obligation limitation that does not expire.
The remainder of the Minimum Guarantee funds are treated like all other funds subject to the obligation limitation.
Each State receives shares of each type of obligation authority in proportion to its share of Minimum Guarantee apportionments.
September 14, 1998