Federal Highway Funding Under the Surface Transportation Extension Act of 2004, Part IV
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), as amended by the
Surface Transportation Extension Act of 2004 (STEA04, P.L. 108-202), the
Surface Transportation Extension Act of 2004, Part II (STEA04-II, P. L. 108-224), the Surface Transportation Extension
Act of 2004, Part III (STEA04-III, P.L. 108-263), the Surface Transportation
Extension Act of 2004, Part IV (STEA04-IV, P.L. 108-280, signed July 30, 2004)
and the Consolidated Appropriations Act, 2004 (P.L. 108-199).
STEA04-IV authorizes contract authority for FY 2004 for FHWA
programs. The amounts authorized include the amounts previously authorized by
STEA03, STEA04, STEA04-II, and STEA04-III for each program. The highway contract authority made
available under STEA04‑IV, except for the portion of Minimum Guarantee
that is exempt from the obligation limitation, is subject to a
0.59 percent across-the-board reduction found in the Consolidated
Appropriations Act. The dollar amounts
in the discussion below are the full amounts authorized, before the 0.59
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
programmatically distributed among the formula programs, including the 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
Amounts are also authorized for
individual allocated programs. In most
cases, the amounts authorized are the same as the amount authorized for FY
2003. Programs normally funded by
deductions off the top of the authorizations for apportioned programs, such as
FHWA administrative expenses and the Bridge Discretionary Program, are
authorized separately under STEA04-IV.
No new authorizations for
FHWA administrative expenses are included.
The amounts authorized for this purpose in STEA04-III remain
unchanged. The STEA04-III funds
authorized for FHWA administrative expenses include funds for the
administrative expenses of the Appalachian Regional Commission (ARC) for the
Appalachian Development Highway System and to reimburse the Office of the
Inspector General (OIG) for audit costs. The authorization is equal to the
Limitation on Administrative Expenses set in the Consolidated Appropriations
Act, 2004 plus the amounts usually provided to the ARC and OIG.
The Consolidated Appropriations Act, 2004 set the obligation
limitation for Federal-aid highway and highway safety construction at
$33,843,000,000, subject to a 0.59 percent across-the-board cut. Under STEA04-IV, within the obligation
limitation set in the DOT Appropriations Act, obligations for all Federal-aid
highway programs are limited to $31,890,519,230, not including $602,134,615 for
Minimum Guarantee that is exempt from the obligation limitation. These amounts are 49/52nds of the amounts
provided in the Consolidated Appropriations Act, 2004. No Federal-aid highway program obligations
may be made after September 24, 2004.
Provisions under the Extension Acts
Previous extension acts allowed the transfer of apportioned
funds subject to the obligation limitation among programs and suballocations.
States were allowed to transfer NHS, IM, STP, Bridge, and STP, except that STP
funds setaside for safety, transportation enhancements and for urbanized areas
over 200,000 population could not be transferred. CMAQ funds were eligible for transfer under STEA03, but this
option was eliminated by STEA04. Funds so transferred are subject to repayment
to the programs from which transfers are made. No changes to the transfer provisions
are made by STEA04-IV.
Of the $35,245,000,000 potentially available for highways
under the FY 2004 budget resolution, STEA04-IV authorizes a total of
$33,211,634,615 in contract authority for highways. Similarly, $31,890,519,230 of the $33,843,000,000 obligation
limitation set in the Consolidated Appropriations Act, 2004 has been made
available by STEA04-IV. It is
anticipated that the remaining $2,033,365,385 in contract authority and
$1,952,480,770 in obligation limitation will be made available for High Priority
Projects and/or other purposes when the Congress returns from its August
P.L. 108-280 - The
Surface Transportation Extension Act of 2004, Part IV
The highway provisions in the legislation amend the Surface
Transportation Extension Act of 2003 (P.L. 108-88), the Transportation Equity
Act for the 21st Century (P.L. 105-178) and Title 23, United
Sec. 1. Short
This act may be cited as the Surface Transportation
Extension Act of 2004, Part IV.
Sec. 2. Advances.
Advance Authorizations of Contract
The section provides funding for Federal-aid highway
apportioned programs except Metropolitan Planning (see section 4) for FY
2004. Funding is provided as an
extension of TEA-21 (thus, TEA-21 conditions such as DBE will apply). No new
programs are authorized in the extension bill.
For Federal-aid highways and highway safety construction
programs, $30,469,806,615 in contract authority is authorized, to be
apportioned as a lump sum to each State based on the State’s relative share of
the 2003 formula obligation limitation.
Each State’s lump sum of contract authority is to be divided
programmatically based on the State’s relative share of the FY 2003
apportionment for each of the following categories
Highway System (NHS)
Transportation Program (STP)
Mitigation and Air Quality Improvement Program (CMAQ)
Development Highway Program (ADHS)
Guarantee (Minimum Guarantee funds in excess of $2,800,000,000 will be
programmatically distributed to the IM, NHS, STP, Bridge, and CMAQ
programs; the remainder will remain as Minimum Guarantee funds with STP
eligibilities as in current law.)
The following deductions and set-asides will not
apply to these funds, because these activities are separately authorized in
STEA04-IV or earlier extension acts --
Highway Administration Administrative Expenses [104(a)(1)(A)]
Motor Carrier Safety Administration
Highway Program [104(b)(1)(A)]
Crossing/Hazard Elimination in High Speed Rail Corridors [104(d)(2)]
Trails Program Administration [104(h)(1)]
Maintenance Discretionary Program [118(c)(1)]
Training/Supportive Services [140(b)]
Discretionary Program [144(g)(1)]
Separate contract authority is provided for the above
activities and other allocated programs (see Sections 4-5).
Within the obligation limitation set in the DOT
Appropriations Act for FY 2004, STEA04-IV limits obligations from the
Federal-aid highway program to $31,890,519,230, not including $602,134,615 for
Minimum Guarantee that is exempt from the obligation limitation. The limitation applies to formula programs,
allocated programs and administrative expenses. No Federal-aid highway program obligations may be made after
September 24, 2004.
Generally, STEA04-IV directs that the available obligation
limitation be distributed according to section 110 of Division F of the
Consolidated Appropriations Act, as amended1,
except that the obligation limitation for each program, project, or activity
will be the greater of the amount made available under STEA04-IV or 49/52nds of
the amount made available under the DOT Appropriations Act, 2004.
STEA04-IV contains a provision that is intended to allow
FHWA to calculate final “lop off” ratio even though the full amount of
obligation authority has not yet been made available and the lack of
legislation authorizing FY 2004 contract authority for high priority
1 Section 110
of the Consolidated Appropriations Act, 2004 (PL 108-199) was amended by the
Surface Transportation Extension Act of 2004 (P.L. 108-202) and by the FY 2005
Defense Appropriations Act.
Sec. 3. Repayment from Future Apportionments.
Amounts apportioned to the States
under previous extension bills are offset against the funds made available by
STEA04-IV and apportionments under STEA04-IV will be offset against amounts
apportioned under subsequent laws extending the Federal-aid Highway Program
authorizations for FY 2004.
Other Federal-aid Highway programs.
Contract authority is provided for other programs for
FY 2004, as follows:
Reservation Roads (IRR) - $275,000,000 (with a minimum $13,000,000 for IRR
Lands Highways - $246,000,000 *
Roads and Parkways - $165,000,000 *
Roads - $20,000,000 *
and Corridors. - $140,000,000
Boats & Terminals - $38,000,000, with setasides for projects on the
NHS in Alaska ($10,000,000), New Jersey ($5,000,000), and Washington
Byways - $26,500,000
Pricing - $11,000,000
Use Tax Evasion - $5,000,000
of Puerto Rico Highway Program - $110,000,000
Clearinghouse - $500,000
and Community and System Preservation Pilot Program - $25,000,000
Infrastructure Finance and Innovation (TIFIA) - $130,000,000, with up to
$2,000,000 for TIFIA administrative costs. The principal amount of credit instruments made available
during the fiscal year is limited to $2,600,000,000.
Transportation Research - $103,000,000
Deployment Program - $50,000,000, with $5,000,000 for the Advanced
Technology Pilot Program (low-speed Maglev)
and Education - $20,000,000
of Transportation Statistics - $31,000,000
Transportation System (ITS) Standards, Research, Operational Tests, and
Development. - $110,000,000
Deployment - $122,000,000
Transportation Research - $26,500,000
Planning - $240,000,000
Highway Program - $36,400,000
Highway - $18,800,000
Lifesaver - $500,000
Discretionary Program - $100,000,000
Maintenance Discretionary Program - $100,000,000
Trails Program Administrative Costs - $750,000
Crossing Hazard Elimination in High Speed Rail Corridors $5,250,000, with
$250,000 to be available for improvements to the Minneapolis/St. Paul –
Chicago segment of the Midwest High Speed Rail Corridor
Training - $10,000,000
Training/Supportive Services - $10,000,000
There will be no administrative takedown (FHWA or FMCSA) from Federal
Lands Highways funds.
Sec. 5. Extension of Highway Safety Programs.
Extends through FY 2004, the two safety grant programs that
are within the Federal-aid highway program:
Incentive Grants for Use of Seat Belts - $112,000,000
Incentives to Prevent Operation of Motor Vehicles by Intoxicated Persons -
Sec. 6. Sport
Fishing and Boating Safety.
This section extends provisions
related to programs funded from the Aquatic Resources Trust Fund.
Sec. 7. Extension
of Federal Transit Programs.
This section extends through FY 2004 the programs of the
Federal Transit Administration.
Section 8. National Highway Traffic Safety Administration Programs.
This section extends National Highway
Traffic Safety Administration program through FY 2004.
Sec. 9. Federal
Motor Carrier Safety Administration Program.
This section extends through FY
2004 the programs of the Federal Motor Carrier Safety Administration.
Sec. 10. Extension
of Authorization for Use of Trust Funds for Obligations under TEA-21.
Generally, this section amends the Highway Trust Fund
provisions of the Internal Revenue Code to authorize expenditures from the HTF
before October 1, 2004, and authorizes expenditures to carry out this Act. For programs funded from the Highway Account
of the Highway Trust Fund, other than those carried out by NHTSA and FMCSA, the
section authorizes expenditures made before September 25, 2004. The section also adopts a temporary rule
that says, for Byrd Test purposes, the imposition of relevant taxes are assumed
to have been extended through the end of FY 2006 along with the deposit of such
taxes in the Highway Trust Fund.