1-Year Redistribution of Highway Infrastructure Investment Funds Pursuant to the American Recovery and Reinvestment Act of 2009
Frequently Asked Questions:
Q: When will the redistribution take place?
The redistribution will take place 1 year following the date of apportionment. The date of apportionment was March 2, 2009; therefore, the redistribution will take place on March 2, 2010.
Q: What funds are subject to the 1-year redistribution?
All apportioned ARRA funds, including those funds set aside for transportation enhancement activities and those funds sub-allocated within each State, are subject to the 1-year redistribution.
This includes funds under the following program codes: program code C240 (funds available for use in any area), program code C220 (funds for transportation enhancement activities), program code C230 (funds for urbanized areas with populations over 200,000), program code C200 (funds for areas with populations equal to or less than 200,000), and program code C250 (funds for rural areas with populations under 5,000).
Q: Does this redistribution include ARRA funds for Indian Reservation Roads and the Forest Highway Program?
No, this redistribution does not include ARRA funds for Indian Reservation Roads and the Forest Highway Program. This redistribution only encompasses apportioned ARRA funds, for which the program codes are listed in the question above. Please note that the ARRA funds for Indian Reservation Roads and the Forest Highway Program will have their own, separate redistribution processes and will also lapse on September 30, 2010.
Q: What amount of funds, if any, will be withdrawn from a State?
Any funds subject to the 1-year redistribution that are unobligated as of 11:59 PM Eastern Standard Time (EST) on March 1, 2010 will be withdrawn from a State.
Q: What will be the effect of transfers on the 1-year redistribution calculation?
ARRA funds transferred to the Federal Transit Administration will NOT be subject to the 1-year redistribution.
ARRA funds transferred to other agencies will be subject to the redistribution; States should ensure the receiving agency can obligate the funds prior to 11:59 PM EST on March 1, 2010.
ARRA funds transferred to other States will be subject to the redistribution. For the purpose of determining what States will be ineligible to receive funds in the redistribution (see next question), the transferred funds will be counted as being those of the receiving State. For example, if State X transfers funds to State Y, the transferred funds will count against State Y when redistribution eligibility is determined. Receiving States should ensure they can obligate any transferred funding prior to 11:59 PM EST on March 1, 2010.
Q: What is the deadline to submit transfer requests?
It is critical that any remaining transfers of ARRA funding to other Federal Agencies, Federal Lands and state DOTs are submitted as soon as possible and no later than February 16, 2010. This will allow adequate time for the OCFO and Treasury Department (for flex transfers to FTA) to execute the transfer and the receiving agency/state to receive and obligate the funds.
Q: Will any States be ineligible to receive funds in the redistribution?
States that have funds available for use in any area (program code C240) or funds for transportation enhancement activities (program code C220) withdrawn will NOT be eligible to receive funds in the redistribution. States that have no funds withdrawn and States that have ONLY sub-allocated funds (program codes C230, C200, and C250) withdrawn will be eligible to receive funds in the redistribution.
Q: How will the withdrawn funds be redistributed?
Withdrawn funds will be redistributed to eligible States in the manner described in section 120(c) of division K of Public Law 110-161 (i.e., the funds will be redistributed using the same formula used for August Redistribution).
Q: What form will the funds take once they are redistributed to the States?
Funds redistributed to a State will be available for use in any area (program code C240). Redistributed funds will not be subject to any set-asides or sub-allocations.
Q: What is the estimated timeline for the 1-year redistribution process?
The following estimated timeline is tentative and subject to change:
Q: Does the process to make adjustments to ARRA project obligations change after March 2010 or September 30, 2010?
Until the end of FY 2010, changes to project obligation amounts are conducted normally in accordance with 23 CFR 630.106 (a)(4).
After September 30, 2010, ARRA funding will lapse. Any funding deobligated after this date will be withdrawn to a centrally controlled account to be used for upward adjustments requested by the States. The process for requesting these funds will be developed prior to the end of the fiscal year.
Q: Why can't lapsed ARRA funding be deobligated and reobligated in the same fiscal year similar to Federal-Aid funding?
ARRA funds are general fund appropriations and subject to title 31 general fund rules. There is a very limited exception under 31 USC 1553 that relates to use of lapsed appropriations for costs associated with timely obligations relating to legitimate overrun costs associated with the original timely obligation (purpose) within the scope of work associated with the original obligation.
Unlike typical Federal-Aid funding, State DOTs do not have an unfettered ability to obligate after expiration of period of availability. The exact opposite is true; there is a very limited ability to obligate after lapse and that ability must be within the parameters of the limited authority under 31 U.S.C. 1553 (and even that is limited to 1% of available appropriations).
See also - FHWA Notice N4510.720: One-Year Redistribution of Highway Infrastructure Investment Funds Pursuant to the American Recovery and Reinvestment Act Of 2009, Public Law 111-5