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 May 23, 2017.

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, and 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 May 23, 2017, entitled OMB Report to the Congress on the Joint Committee Reductions for Fiscal Year 2018 (sequestration report).

   2. The NHPP funds are authorized for FY 2018 pursuant to the Fixing America’s Surface Transportation (FAST) Act. Pursuant to the sequestration report, those NHPP funds that are exempt from the obligation limitation are subject to the sequestration at a rate of 6.6 percent. Therefore, the $639,000,000 in NHPP funds exempt from obligation limitation available for FY 2018 is reduced by a total of $42,174,000, resulting in a post-sequestration amount of $596,826,000.

3. How is the amount of NHPP funds sequestered for each State determined? The total sequester amount of $42,174,000 is distributed among the States in the same proportions as the funds subject to sequester were apportioned to the States for FY 2018. 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 6.6 percent ($6,600,000 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

FY 2018 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, AND 2 U.S.C. 906(k)(6)