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Summary of ARRA Provisions for FHWA
(Public Law 111-5)


  • $27.5 billion as supplemental formula grants (FHWA)
    • Available through 09/30/2010
  • $1.5 billion for discretionary grants program (OST)
    • Available through 09/30/2011
  • Appropriated from General Fund


  • Surface Transportation Program
  • Passenger and freight rail transportation and port infrastructure projects (23 U.S.C. 601(a)(8))


  • $550 million for Indian reservations and Federal lands
    • $310 million for Indian Reservation Roads
      • ≤ 4% ($12.4 million) may be used by DOI for management and oversight
    • $170 million for Park Roads and Parkways
    • $60 million for Forest Highway
    • $10 million for Refuge Roads
    • Priority to capital investments and to projects that can be completed within 2 years of enactment
    • 1 year after enactment, can redistribute unobligated funds within respective program
    • Lake Tahoe region funding does not apply
  • $20 million for Highway Surface Transportation and Technology Training
  • $20 million for Disadvantaged Business Enterprises bonding assistance
  • $105 million for Puerto Rico Highway
  • $45 million for Territorial Highway
  • $60 million for construction of ferry boats and ferry terminal facilities
    • Distribute as competitive discretionary grants to States
    • Priority to projects that can be completed within 2 years of enactment
  • ≤ $40 million for management and oversight
    • Available through 09/30/2012


  • Federal share up to 100% of cost
  • Apportion 50% using STP formula and 50% using same ratio as FY 2008 distribution of obligation limitation
  • 3% TE set-aside (without regard to comparison to FY 2005)
  • 30% suballocated by population according to portions under STP requirements (exempt from 120-day redistribution requirement below)
  • 120 days after apportionment, withdraw 50% of State funds less obligated amount and redistribute to States with no funds withdrawn (use August Redistribution formula)
  • 1 year after apportionment, withdraw any unobligated funds and redistribute to States with no funds withdrawn (use August Redistribution formula)
    • May extend 1 year period due to unworkable bidding environment or other extenuating circumstances
    • Before granting extension, Secretary to send explanatory letter to House and Senate Appropriations Committees
  • Funding in addition to FY 2009 and FY 2010 funds for Federal-aid highways
  • Funding not subject to obligation limitations for Federal-aid highways or highway safety construction programs
  • Priority for projects that:
    • Are projected for completion within 3 years
    • Are located in economically distressed areas
  • Administer as if apportioned under 23 U.S.C. Chapter 1
  • Administer Indian reservation roads and park roads and parkways as if apportioned under 23 U.S.C. Chapter 2
  • Cannot be obligated for advance construction
  • Disadvantaged Business Enterprises rules apply
  • Funds must be apportioned no later than 21 days after enactment

Discretionary Grants (OST):

  • Federal share up to 100% of cost
  • ≤ $200 million for TIFIA
  • For state and local governments to use on longer-range surface transportation projects (including highway, bridge, transit, rail, and port projects)
  • Need to demonstrate why their projects have national, regional or metropolitan significance
  • Ensure equitable geographic distribution of funds and appropriate balance between urban/rural
  • Grants have to be between $20 – $300 million (inclusive)
    • May waive minimum for projects in smaller areas
  • ≤ 20% of total funds to single State
  • Priority to projects that require additional share of Federal funds in order to complete overall financing package and that can be completed within 3 years of enactment
  • Publish competitive criteria within 90 days of enactment
  • Applications submitted within 180 days of enactment
    • Announce selected projects within 1 year of enactment
  • Wage rate requirements for public buildings apply
  • ≤ $1.5 million for oversight (FHWA, FTA, FRA, MARAD)

Maintenance of Effort:

  • Within 30 days of enactment, Governor to certify that State will maintain own funding for highway projects; identify amount of funds State plans to expend from non-Federal sources between date of enactment and 09/30/2010
  • If unable to maintain level of effort certified, then State prohibited from receiving additional limitation via August Redistribution for FY 2011


  • Amount of Federal funds appropriated, allocated, obligated, and outlayed under appropriation
  • Number of projects put out to bid under appropriation and amount of Federal funds associated with them
  • Number of projects for which contracts have been awarded under appropriation and amount of Federal funds associated with such contracts
  • Number of projects for which work has begun under such contracts and amount of Federal funds associated with such contracts
  • Number of projects for which work has been completed under such contracts and amount of Federal funds associated with such contracts
  • Number of direct jobs created or sustained by Federal funds provided for projects under appropriation and (if possible) estimated indirect jobs created or sustained in associated supplying industries, including job-years and total increases
  • Actual aggregate expenditures by each grant recipient from non-Federal sources for projects eligible for funding under program from enactment date through 09/30/2010, as compared to level of such expenditures that were planned to occur during such period as of enactment date
  • Timing of reports – no later than 90 days after date of enactment and updated reports not later than 180 days, 1 year, 2 years, and 3 years after date of enactment
  • Paperwork Reduction Act requirements do not apply to this reporting section


  • Establish Recovery Accountability and Transparency Board
  • Establish Recovery Independent Advisory Panel
  • Publish plan for using funds on
  • Sec. 1553 – Protect government and contractor whistleblowers
  • Sec. 1554 – If possible, contracts to be awarded as fixed-price contracts through competitive procedures

General Provisions:

  • Sec. 1601 – Appropriated funds are in addition to funds for FYs involved
  • Sec. 1602 – Use ≥ 50% of funds for projects that can start within 120 days of bill enactment (general goal; see above for highway provisions)
  • Sec. 1603 – Appropriated funds available until 09/30/2010
  • Sec. 1604 – Appropriated funds cannot be used for casino, aquarium, zoo, golf course, or swimming pool
  • Sec. 1605 – Use of American iron, steel, and manufactured goods
  • Sec. 1606 – Laborers and mechanics to be paid prevailing wages
  • Sec. 1607 – Certification by Governor and acceptance by State legislature
  • Sec. 1608 – Reform of contracting procedures under ESSA to include individuals with disabilities
  • Sec. 1609 – Compliance with National Environmental Policy Act requirements
  • Sec. 1610 – Contracts to comply with Federal Property and Administrative Services Act and Federal Acquisition Regulation
  • Sec. 1611 – Hire American workers in companies receiving TARP funds
  • Sec. 1612 – Agency head may transfer ≤ 1% of funds between appropriations during current FY

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