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Summary of Federal Highway Funding (H.R. 3087), the 5-Month Extension and the Continuing Resolution.

Federal Highway Funding Under Short Term Legislation

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For the near future, the funding for the Federal Highway Administration will be based on two legislative acts: The Surface Transportation Extension Act of 2003 (STEA03, P. L. 108-88) and the joint resolution making continuing appropriations for the fiscal year 2004 (CR, P.L. 108-84). Both were signed by the President on September 30, 2003.

Contract Authority

STEA03 authorizes contract authority for the first 5 months of FY 2004 for FHWA programs. In most cases, the amounts authorized are for 5/12ths of the amount authorized for FY 2003.

Formula Programs-Contract authority is authorized for the FHWA's formula programs. A separate authorization is provided for metropolitan planning, but a single lump sum of contract authority is authorized for all other formula programs. This lump sum will be apportioned among the states based on the FY 2003 formula obligation limitation distribution. The amount for each State will then be distributed among the formula programs, including minimum guarantee, based on the amounts the State received for each program for FY 2003. The apportionments will be subject to the various penalty provisions. The metropolitan planning funds will be distributed under the usual formula. Formula program funds will be apportioned on October 1, 2003.

Allocated Programs-Amounts are also authorized for individual allocated programs and for FHWA's administrative expenses. In most cases, the amounts authorized are for 5/12ths of the amount authorized for FY 2003. Programs normally funded by deductions off the top of the authorized amounts, like FHWA administrative expenses and the Bridge Discretionary Program, are authorized separately under STEA03.

Obligation Limitation

As of September 30, 2003, the Transportation, Treasury, and General Government Appropriations Act for FY 2004 has not been enacted. Until such time as a full-year appropriations act is enacted, the continuing resolution will determine the availability of obligation limitation. The CR provides continuing appropriations for the period of October 1, 2003 through October 31, 2003. Under the continuing resolution, each State will receive obligation limitation equal to 31/366ths of its FY 2003 formula limitation.

Under STEA03, within the full year obligation limitation to be set in the Transportation, Treasury, and General Government Appropriations Act for FY 2004, obligations for all Federal-aid highway programs during the 5-month period (10/1/03-2/29/04) are limited to $14,101,250,000, not including $226,250,000 for Minimum Guarantee that is exempt from the obligation limitation.

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