Due to Congress not passing a full year’s budget, the Federal Highway Administration (FHWA) is currently operating under a Continuing Resolution (CR). This CR covers the period from October 1, 2020, through December 11, 2020. The obligation limitation level under the CR is set at 72 days or 19.73 percent of the FY 2020 enacted obligation limitation. This percentage is based on the duration of the CR (72 days covered in the CR divided by 365 days). A formula obligation limitation notice is expected to be received soon with the limitation amount available for the CR period. The Notice will be forwarded as soon as it is received.
Below, are excerpts from a memorandum issued by the FHWA CFO, Brian Bezio regarding the CR.
Funding for FHWA Programs
Please note that obligations and reimbursements through Current Bill cannot be processed in FMIS until the system opens on October 6, 2020.
Apportioned programs subject to annual formula limitation. The notices apportioning FY 2021 contract authority pursuant to the extension of the FAST Act, showing the sequestration of applicable contract authority, and providing obligation limitation under the CR will be posted at https://www.fhwa.dot.gov/fastact/funding.cfm. The Obligation Limitation Notice includes each State’s formula obligation limitation; this limitation applies to all programs that were charged to the formula obligation limitation in FY 2020. The Apportionment Notice, Sequestration Notice, and Obligation Limitation Notice are expected to be issued no later than the week of October 12.
Allocated Programs subject to annual limitation. Due to the short duration of the CR, HCF will only automatically distribute new or carryover obligation authority to non-formula Federal-aid highway programs that must obligate funding for administrative expenses. Carryover funding for Infrastructure for Rebuilding America (INFRA) grants will be provided subject to the limitation of the CR. Note that FY 2018 INFRA funds must be obligated by the end of FY 2021 since the funding expires on September 30, 2021, and will no longer be available for obligation after that date. Other programs that need to obligate funding during the period of the CR should contact the Office of Budget.
Programs exempt from limitation. There is no limitation on the obligation of funds exempt from the Federal-aid obligation limitation. This includes Emergency Relief funding, as well as a portion of the funds available to each State under the National Highway Performance Program (NHPP). Please note that these funds are subject to the FY 2021 sequestration (see the Notice, which will be posted at https://www.fhwa.dot.gov/fastact/funding.cfm). Programs with carry-over, no-year limitation. Carryover balances of programs funds with special no-year limitation (e.g., Appalachian Development Highway System) may be obligated.
Programs with carry-over, multi-year limitation. Carryover balances of unused, multi-year obligation authority for research, Intelligent Transportation Systems (ITS) program, and other special limitation programs will be made available in full for obligation. This includes carryover balances for the Advanced Technology and Congestion Management Technology Deployment (ATCMTD) program and the Surface Transportation System Funding Alternatives (STSFA) program.
Emergency Relief and Disaster Recovery
Both program and GOE funding will be provided under the CR to support emergency relief and disaster recovery efforts.
New and carryover Emergency Relief program funding—both from the Highway Trust Fund and the General Fund—will be made available in full during the CR since this funding is not subject to the obligation limitation.
Other Programs
Funding repurposed from earmarks. Earmarks repurposed in FY 2018 must be obligated by the end of FY 2021 since the funding expires on September 30, 2021, and will no longer be available for obligation after that date. The Office of Budget will continue to process State requests made in FY 2020 to repurpose certain funds originally earmarked for specific projects. Divisions will be notified when their State’s request has been processed and the repurposed funding is available in FMIS for obligation. The CR does not extend this provision.
Highway Infrastructure Programs funds. Carryover of Highway Infrastructure Programsfunds appropriated in FY 2018, FY 2019, and FY 2020 are available for obligation in full since they are from the General Fund and not subject to any limitation on obligations. This includes both the remaining unobligated balances of the formula funding and allocated funding for the Puerto Rico Highway Program, the Territorial Highway Program, the Nationally Significant Federal Lands and Tribal Projects program, the competitive highway bridge program, etc. Carryover advices will be provided for the unobligated Highway Infrastructure Programs balances of allocated funding.
We do not plan to distribute new FY 2021 funding for the Highway Infrastructure Programs under the CR. Instead, we will wait until FY 2021 Highway Infrastructure Programs funding, if any, is enacted in full-year appropriations. This may be reevaluated if we receive additional guidance from the Department or the Office of Management and Budget.
TIGER & BUILD. TIGER VI funds will cancel on September 30, 2021, and will no longer be available for obligation or expenditure. In addition, all funding for BUILD 2019 must be obligated by the end of FY 2021 since the funding expires on September 30, 2021, and will no longer be available for obligation after that date.
For all other programs, not subject to lapse and not specifically covered above, obligations are limited to unobligated balances as of September 30, 2020, upon the receipt of an allotment.
Advances from Foreign Countries/Other Agencies, etc.
Programs funded by advances from foreign countries/other agencies, etc., may operate at a level commensurate with unobligated balances available on September 30, 2020, together with any new deposits made in FY 2021 upon the receipt of an allotment. Note that as of October 1, 2015, these funds are subject to OMB apportionment (previously, they had been exempt from apportionment). This should not have an impact on program operations.
Funding Transfers
There are no restrictions to funding transfers under the CR.