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 10, 2014.

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 10, 2014, entitled OMB Report to the Congress on the Joint Committee Reductions for Fiscal Year 2015 (sequestration report).

   2. Pursuant to the sequestration report, NHPP funds authorized for the period beginning on October 1, 2014, and ending on May 31, 2015, pursuant to the Highway and Transportation Funding Act of 2014, Public Law (Pub. L.) 113-159, and exempt from the obligation limitation are subject to the sequestration at a rate of 7.3 percent. Therefore, the $425,416,438 in NHPP funds exempt from obligation limitation available for the period beginning on October 1, 2014, and ending on May 31, 2015, is reduced by a total of $31,055,400.

3. How is the amount of NHPP funds sequestered for each State determined? The total sequester amount of $31,055,400 is distributed among the States in the same proportions as the funds subject to sequester were apportioned to the States for the period beginning on October 1, 2014, and ending on May 31, 2015. 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 7.3 percent ($7,300,000 sequester amount).

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

Attachment

U.S. 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),
FOR THE PERIOD BEGINNING ON OCTOBER 1, 2014, AND ENDING ON MAY 31, 2015