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U.S. Department
of Transportation
Federal Highway

Subject: ACTION: Congestion Mitigation and Air
Quality - Increased Federal Share
Date: April 10, 2008
From: “Original signed by”
Margo D. Sheridan
Deputy Chief Financial Officer
In Reply Refer To: HCFM-10

Directors of Field Services
Division Administrators


The Federal Highway Administration has conducted further analysis of section 1131 of the Energy Independence and Security Act of 2007 (EISA), Public Law 110-140. This provision increased the Federal share for the Congestion Mitigation and Air Quality (CMAQ) program (23 U.S.C. § 120(c)(2)). In enacting Section 120(c)(2), Congress established an 80 percent Federal share subject to new flexibility for a State to increase the Federal share payable on a CMAQ project up to 100 percent of the cost and further subject to Section 120(i), which provides that a State may increase the non-Federal share for a project subject to criteria that the Secretary may establish. Consequently, there is no absolute minimum of 80 percent Federal share. Before the date of enactment of the EISA, the Federal share for the CMAQ program was 80 percent, 90 percent if used on the Interstate System, and 100 percent if used for certain safety projects. As of December 20, 2007, funds that are obligated in fiscal year 2008 and/or 2009 for any project carried out under the CMAQ program (23 U.S.C. 149), may be increased up to 100 percent of the total cost, at the discretion of the State.

Any memoranda, preliminary information, or directives issued related to the CMAQ Federal share by the FHWA after the enactment of the EISA and before April 4, 2008, are hereby rescinded.

Projects obligated prior to December 20, 2007, may not be modified to claim the increased Federal share. Modifications may be made to increase the Federal share on projects obligated on or after December 20, 2007, the effective date of the new legislation. The change in the Federal share is to be entered as a new detail line item in the Fiscal Management Information System.

Please contact Dale Gray at (202) 366-0978 if you have any additional questions.

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