FY 2014 Federal-Aid Highway Funding Update

Last month, the Federal Highway Administration (FHWA) issued several notices to states on federal fiscal year (FY) 2014 funding for highway programs. It released the FY 2014 apportionments for major highway programs based on Moving Ahead for Progress in the 21st Century (MAP-21, P.L. 112-141). FHWA also provided states with their FY 2014 obligation limitations. While the apportionments inform states of their authorized amounts, the total amount of obligations in a given year is controlled through the appropriations process by an obligation limitation. The FY 2014 obligation limitations issued on October 29, 2013, reflect the Continuing Appropriations Act of 2014 (P.L. 113-46). Since the continuing resolution (CR) covers October 1, 2013, through January 15, 2014, states have access to only a portion of their annual obligation limitation.

In addition, the notices identify states with highway safety penalties, which require them to transfer a portion of their funds to highway safety programs or activities. This year, a special apportionment for the High Risk Rural Road (HRRR) Safety program is required for the first time in seven states. Under MAP-21, states whose fatality rate on rural roads increases over a two-year period must obligate a portion of their Highway Safety Improvement Program (HSIP) funds to the HRRR program.

A separate notice informed states of their reductions in National Highway Performance Program (NHPP) funds as a result of Budget Control Act (BCA) sequestration effective on October 1, 2013.