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 1, 2013.

2. 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 1, 2013, entitled OMB Report to the Congress on the Joint Committee Sequestration for Fiscal Year 2013 (sequestration report).

   2. Pursuant to the sequestration report, NHPP funds authorized for FY 2013 pursuant to the Moving Ahead for Progress in the 21st Century Act (MAP-21), Public Law (Pub. L.) 112-141, and exempt from the obligation limitation are subject to the sequestration at a rate of 5.1 percent. Therefore, the $639,000,000 in NHPP funds exempt from obligation limitation available for FY 2013 is reduced by a total of $32,589,000.

3. How is the amount of NHPP funds sequestered for each State determined? The total sequester amount of $32,589,000 is distributed among the States in the same proportions as the funds subject to sequester were apportioned to the States for FY 2013. Each State’s portion of the total amount to be sequestered is shown in the attached table.

4. 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 5.1 percent (sequester amount of $5,100,000). Also, the $2,022,000,000 in supplemental emergency relief funds provided in the Disaster Relief Appropriations Act, 2013, Pub. L. 113-2, is subject to the sequestration at a rate of 5.0 percent (sequester amount of $101,100,000). In addition, the $6,200,000,000 transfer from the General Fund to the Highway Trust Fund authorized in MAP-21 is subject to the sequestration at a rate of 5.1 percent (sequester amount of $316,200,000).

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

Attachment

UNITED STATES DEPARTMENT OF TRANSPORTATION
FEDERAL HIGHWAY ADMINISTRATION

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)