AASHTO Committee on Funding & Finance July 19, 2018

FY 2018 Budget: Bipartisan Budget Act 2 year overall budget (defense and domestic) FY19 Appropriations Act before October 1, 2018? Disaster aid $1,374,000,000 from the General Fund for FHWA’s Emergency Relief Program, available until expended. The funds are not earmarked for any specific disaster. Lifts the $20 million per year cap on obligation of Emergency Relief funds in the 4 territories in FY 2018 and FY 2019. Puerto Rico may use toll credits to meet the non-Federal share for the response to damage caused by Hurricanes Ima and Maria. Makes authority to transfer funds/limitation to the Bureau permanent

FY 2018 Budget: Omnibus Appropriation Obligation Limitation: at FAST Act levels BUILD: $1.5 billion; strict deadlines for NOFO and award INFRA: Notification shall be made no later than 180 days after enactment Earmark repurposing: provision continued; reduces the geographic area to 50 miles from 100 miles Rescission: None General Fund Appropriation: $2,525,000,000 in discretionary highway funding due to Bipartisan Budget Act

New Discretionary Highway Funding STBG eligible activities ($1.98 billion) Apportioned to the States in the same ratio as the formula obligation limitation for FY 2018 is distributed among the States Nationally Significant Federal Lands & Tribal Projects ($300 million) Authorized by FAST Act but never funded Competitive highway bridge program ($225 million) Population density of less than 100 individuals per square mile Demonstrate cost savings by bundling multiple highway bridge projects These are General Funded programs! Must obligate in 4 years (except NSFLTP) and no deob/reob Strict expenditure deadline (5 years after availability ends)

FY 2019 Budget: House and Senate Bills Obligation Limitation at FAST Act levels General Fund Appropriation Senate: $3.3 billion $2.4 billion for roads, bridges and tunnels $800 million for bridge replacement and rehabilitation program $90 million for Railway-Highway Crossing Program No funding for NSFLTP House: $4.25 billion $3.8 billion for roads, bridges and tunnels $250 million for HSIP eligible projects $100 million for NSFLTP Earmark repurposing provision continued

Grants Oversight and New Efficiency (GONE) Act Background Enacted on January 28, 2016 Report on open grants and cooperative agreements for which the period of performance ended more than two years ago Purpose is to 1) improve accountability in grants management and 2) free up funding tied to grants and cooperative agreements that should be closed Alternative Methodology Most FHWA projects do not have a period of performance end date, with the Project End Date field only having been implemented in FMIS in March 2017. For those projects without a Project End Date, FHWA used the alternative criteria of projects that had no obligation/deobligation or expenditure activity for two or more years.

GONE Act (Continued) Submission to OMB Prioritization Report submitted in October 2017 14,000 for entire department Over 13,100 were FHWA Total balance of $88 million Only 86 projects had a balance of $100,000 or greater 10,685 of the grants (82%) have a zero balance Prioritization Projects with balances and > 3 years old Projects with no balance and > 5 years old Projects with no balance and between 3-5 years old

August Redistribution In FY17, $3.1 billion in obligation limitation was returned for redistribution; $2.6 billion from TIFIA and INFRA. In FY18, could be higher: TIFIA – $1.8 billion available; $200 million obligated. INFRA – $1.5 billion available; 60 day Congressional waiting period ends August 4, 2018 Amounts should return to historical norms as INFRA obligations increase and TIFIA uses Obligation Limitation authorized by MAP-21

Miscellaneous FY 2016 repurposed earmark funding 38% remains unobligated Must be obligated by September 30, 2019 Cannot be repurposed again Improper Payments Workgroup Representatives from HQ, the Resource Center and 5 Division Offices The Work Group plans to: Review existing guidance to determine an understanding of improper payment issues associated with State billing systems; Survey Division Offices and review available resources to identify best practices and other issues Deliver new guidance (if needed) and best practices to FHWA staff and external stakeholders

What does the Future Hold? FAST Act $7.6 billion Rescission Implement summer of 2020 Impact on August Redistribution? FAST Act expires October 1, 2020 New authorization or multiple extensions? How is it funded? Highway Trust Fund Solvency How will cash be managed if reimbursement requests exceed available balance?