FINANCING FEDERAL-AID HIGHWAYS

This paper which describes the procedures involved in the financial operations of the Federal-aid highway program, traces the flow of authority from authorizing legislation through reimbursement. The empowerment to conduct a Federal-aid highway program comes from the authorization acts (highway acts). Apart from the basic substantive legislative pronouncements, they also contain authorizations, the sums which are to be used for administering and conducting the highway program. Administrative funds are deducted from the authorizations prior to apportionment. The deduction mormally comprises about 2 percent of the total authorizations. sums apportioned are available for obligation immediately upon apportionment and remain available until 2 years after the end of the fiscal year. After the period of availability ends, unobligated sums (except for Interstate Systems) lapse. Interstate funds are reapportioned among other states. The only constraint on availability is that the limitation on obligations imposed by the Office of Management and Budget must not have been exceeded. This limitation is a ceiling on the amount of obligations that can be incurred in a fiscal year. It has no relation to any fiscal year authorization but only to amounts obligated within a particular fiscal year. Such amounts may be composed of 3 or 4 fiscal year authorizations because of the length of time the apportionments are available and became of the differing rates of obligation by the state. Reimbursement is permitted through an apportionment act with the liquidating cash coming from the Highway Trust fund.

  • Corporate Authors:

    Federal Highway Administration

    1200 New Jersey Avenue, SE
    Washington, DC  USA  20590
  • Authors:
    • Felrice, B
  • Publication Date: 1974-1

Media Info

  • Features: Figures;
  • Pagination: 13 p.
  • Serial:
    • Issue Number: 34

Subject/Index Terms

Filing Info

  • Accession Number: 00263046
  • Record Type: Publication
  • Report/Paper Numbers: Tech Rpt.
  • Files: TRIS, USDOT
  • Created Date: Nov 12 1974 12:00AM