Order Code RS22060
Updated April 6, 2005
CRS Report for Congress
Received through the CRS Web
The Aquatic Resources Trust Fund
Eugene H. Buck
Specialist in Natural Resources Policy
Resources, Science, and Industry Division
Summary
The Aquatic Resources Trust Fund was created in 1984 and subsequently amended
to support a variety of programs. This report details sources of funding for this trust
fund’s two accounts — the Sport Fish Restoration Account and the Boat Safety Account
— and summarizes the various programs and activities receiving funding from the trust
fund. This report will be updated as circumstances warrant.
Background
The Aquatic Resources Trust Fund (26 U.S.C. §9504) was established in 1984 by
P.L. 98-369 (Div. A, Title X), commonly referred to as the Wallop-Breaux Amendment
to the Federal Aid in Sport Fish Restoration program.1 This trust fund is composed of two
accounts — the Sport Fish Restoration Account and the Boat Safety Account. Subsequent
to its creation, this trust fund has been amended to provide support to a variety of
additional programs. This report details the sources of funding for the trust fund and its
two accounts, and summarizes how various programs and activities receive funds from
the two accounts.
Income to the Aquatic Resources Trust Fund Accounts
Sport Fish Restoration Account. There is no limit on the maximum balance
in this account. The Sport Fish Restoration Account receives income from five sources.
(1) As a permanent appropriation, this account receives, from the Highway Trust
Fund, any remaining motorboat fuel taxes2 in excess of $70 million annually allocated to
1 The original program was created by the 1950 Dingell-Johnson Federal Aid in Sport Fish
Restoration Act (Act of August 25, 1950; 64 Stat. 474).
2 1.08% of the total Highway Trust Fund is attributable to motorboat fuel taxes. Of the 18.3 cents
per gallon federal fuel tax derived from motorboat fuel taxes, 13.5 cents per gallon is transferred
to the Aquatic Resources Trust Fund (the rest — 4.8 cents per gallon — goes to “deficit
Congressional Research Service ˜ The Library of Congress

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the Boat Safety Account and $1 million annually allocated to the Land and Water
Conservation Fund (26 U.S.C. §9503(c)(4)(C)). In recent years, annual income from this
source has exceeded $235 million; in FY2004, income was about $238.6 million.
(2) This account receives, from the Highway Trust Fund, the annual tax receipts on
small engine fuel used for outdoor power equipment (26 U.S.C. §9503(c)(5)). This
transfer of funds is authorized through September 30, 2005 (26 U.S.C. §9503(c)(5)(A)).
These funds were specifically to be used for coastal wetlands restoration. In recent years,
annual income from this source has been slightly more than $70 million; in FY2004,
income from this source was about $73 million.
(3) This account receives the annual receipts from a manufacturers’ excise tax on
sport fishing equipment (26 U.S.C. §4161(a)). This is a permanent annual appropriation
to the Sport Fish Restoration Account (26 U.S.C. §9504(b)(1)(A)). In recent years,
annual income from this source has been approximately $100 million; in FY2004, income
from this source was about $104 million.
(4) This account receives the annual receipts from import duties on fishing tackle
under heading 9507 of the Harmonized Tariff Schedule of the United States (19 U.S.C.
§1202) and on yachts and pleasure craft under chapter 89 of the Harmonized Tariff
Schedule of the United States. This is a permanent annual appropriation to the Sport Fish
Restoration Account (26 U.S.C. §9504(b)(1)(B)). In recent years, annual income from
this source has been between $30 million and $40 million; in FY2004, income from this
source was about $40.2 million.
(5) This account receives interest on funds invested prior to disbursal (26 U.S.C.
§9602(b)). In recent years, annual income from this source has been approximately $35
million; in FY2004, income from this source was about $4.9 million. Income from this
source can fluctuate widely, depending upon interest rates.
Boat Safety Account. This account receives receipts from motorboat fuel taxes
from the Highway Trust Fund, not to exceed $70 million annually (26 U.S.C.
§9503(c)(4)(A)). The Boat Safety Account is statutorily limited to a maximum balance
of $70 million of unappropriated motorboat fuel taxes, plus interest earned by investment
of account balances (26 U.S.C. §9503(c)(4)(A)(ii)(II)). The Boat Safety Account reached
the maximum balance of $70 million in 1999, and no further receipts have been
deposited, as there have been no appropriations since FY1998 from this account to lower
the balance. This transfer of funds is authorized through September 30, 2005 (26 U.S.C.
§9503(c)(4)(A)(i)).
This account also receives interest on funds invested prior to disbursal (26 U.S.C.
§9602(b)) — in FY2004, the income from this source was approximately $1.4 million.3
2 (...continued)
reduction”).
3 As of January 31, 2005, the addition of accrued investment interest resulted in a balance of
$92.9 million in the Boat Safety Account.

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Expenditures from the Aquatic Resources Trust Fund Accounts
Sport Fish Restoration Account. Eight separate programs are funded from this
account, as follows:
(1) The Sport Fish Restoration Program (16 U.S.C. §§777, et seq.), administered by
the Fish and Wildlife Service’s Division of Federal Assistance, grants state agencies
funding, based on a formula. Sixty percent of each state’s share is based on its number
of licensed anglers (fishermen) and 40% on its land and water area. No state receives
more than 5% or less than 1% of each year’s total apportionment. Puerto Rico receives
1%, and the Virgin Islands, Guam, American Samoa, Northern Mariana Islands, and the
District of Columbia each receive one-third of 1%. Annually, between $250 million and
$300 million has been allocated to states through this program; in FY2004, a total of
$290.2 million was distributed to states through the program. State projects funded by
this program can include land acquisition, development (including boating access sites),
research, operations and maintenance, sport fish population management, and program
coordination. Prohibited activities are law enforcement and public relations. Historical
state allotments are available at [http://federalaid.fws.gov/apport/SFRAhistory.pdf],
visited on April 6, 2005.
(2) Section 7404(d) of the Transportation Equity Act (TEA-21; P.L. 105-178)
authorized a boating infrastructure competitive grant program that provides matching
funds to states to install or upgrade tie-up facilities for transient recreational boats 26 feet
or more in length.4 Annual state grants are authorized at $8 million under this program;
in FY2004, a total of $5.7 million was distributed to states through the program.
(3) The Coastal Wetlands Planning, Protection and Restoration Act (Title III of P.L.
101-646) amended the Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. §777c) to
authorize an allocation of 18% of the Sport Fish Restoration Account for coastal wetlands
programs. Of this total amount provided from the Sport Fish Restoration Account, 15%
is provided for the National Coastal Wetlands Conservation Grants Program (about $12
million annually; in FY2004, about $15.5 million was distributed through this program),
70% is provided for the Corps of Engineers Louisiana Coastal Wetlands Restoration
Program (about $60 million annually; in FY2004, a total of about $59 million was
transferred to the Corps for this program), and 15% is provided for the North American
Wetlands Conservation Fund (about $12 million annually; in FY2004, a total of about
$11.2 million was distributed from this fund). Appropriations are authorized for these
programs through FY2019 (§114(b), Division C, Title I of P.L. 108-447).
(4) The Clean Vessel Act of 1992 (Title V, Subtitle F of P.L. 102-587) authorized
a competitive grant program for states to construct pump-out and dump stations to dispose
of vessel sewage from recreational boaters. Annual state grants total approximately $10
million under this program; in FY2004, a total of about $5.6 million was distributed to
states through this program. For more information about this grant program, see [http://
federalaid.fws.gov/cva/cvaapplication.pdf], visited April 6, 2005.
4 50 C.F.R. Part 86; 66 Fed. Reg. 5282-5294, Jan. 18, 2001.

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(5) The National Outreach and Communications Program, an aquatic resource
education initiative, provides for states to be reimbursed not to exceed 15% of the state’s
total Sport Fish Restoration apportionment. The Recreational Boating and Fishing
Foundation,5 a tax-exempt corporation, was established in 1998 to carry out this program
to increase participation in recreational boating and fishing and to encourage greater
public involvement in aquatic stewardship as mandated in the Sportfishing and Boating
Safety Act of 1998 (Title VII, Subtitle D of P.L. 105-178). Authorization of
appropriations for this program were provided through FY2003 (16 U.S.C. §777c(c)).
Annually, about $10 million is spent on this program; in FY2004, about $2.3 million was
provided.
(6) Funds from this account are also provided to the state recreational boating safety
grant program (16 U.S.C. §777c(b)), reduced by 82% of any appropriations from the Boat
Safety Account. Annually, a maximum of $64 million from the Sport Fish Restoration
Account is allocated to this program, as was done in FY2004.
(7) The Wildlife and Sport Fish Restoration Program Improvement Act of 2000 (P.L.
106-408) authorized a Multi-State Conservation Grant Program. From the Sport Fish
Restoration Account, the Secretary of the Interior receives as much as $3 million annually
for this program (16 U.S.C. §777m(a)), with the maximum $3 million provided in
FY2004.
(8) In addition, 16 U.S.C. §777m(e) provides $200,000 annually to four Interstate
Fishery Commissions as well as $400,000 annually to the Sport Fishing and Boating
Partnership Council.6 In FY2004, a total of almost $1.4 million was provided under this
authority.
Authorized administrative expenses for management of the Aquatic Resources Trust
Fund by the Fish and Wildlife Service are identified in 16 U.S.C. §777h. In recent years,
annual administrative expenses have been between $8 million and $9 million; for
FY2004, administration expenses totaled almost $9.3 million.
Boat Safety Account. A state recreational boating safety grant program,
administered by the U.S. Coast Guard’s Office of Boating Safety, is funded from this
account (46 U.S.C. §13106). Appropriations are currently authorized from this account
for state recreational boating safety programs through May 31, 2005 (26 U.S.C.
§9504(c)).7 However, no funds have been appropriated from the Boat Safety Account
since FY1998 for the state recreational boating safety grant program. For more
information on this grant program, see [http://www.uscgboating.org/grants/state/rbs.htm],
visited on April 6, 2005.
5 For more information, see [http://www.rbff.org/about/index.cfm?exp=yes], visited on Apr. 6,
2005.
6 Authorized by the Wildlife and Sport Fish Restoration Program Improvement Act of 2000 (P.L.
106-408).
7 Section 13(b)(2) of P.L. 108-310.

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Legislative Issues
In addition to reauthorization and extensions of authorizations for appropriations,
several other concerns relating to the Aquatic Resources Trust Fund were identified in
legislation introduced in the 108th Congress. Two bills would have terminated the
practice of dedicating a portion of motorboat and small engine fuel taxes to deficit
reduction, thus increasing funds available for the Aquatic Resources Trust Fund. Other
legislation sought to guarantee and increase funding for boat safety grants, to simplify
program funding through the Aquatic Resources Trust Fund by assigning each program
a fixed annual percentage of the total fund, and to distribute the unappropriated balance
in the Boat Safety Account among various programs. Another bill proposed merging the
two accounts of the Aquatic Resources Trust Fund, to be renamed the Sport Fish
Restoration Trust Fund. None of these major initiatives was enacted by the 108th
Congress, and these and other proposals are likely to be considered in the 109th Congress.
The American League of Anglers and Boaters (ALAB), a constituent group
composed of 34 organizations representing a broad spectrum of fishing and boating
interests, has been particularly active in advocating changes in how the Aquatic Resources
Trust Fund is structured and managed. The legislative objectives of these groups include
(1) permanent appropriation of funding to the Boat Safety Account; (2) a modified
distribution of funds from the trust fund whereby all accounts would annually receive a
fixed percentage of the total fund revenue, except for administration of the fund by the
Fish and Wildlife Service, which would remain a capped dollar amount; (3) a 75/25 state
match for the recreational boating safety program; and (4) reallocation of the fuel tax
receipts currently dedicated to deficit reduction for boating and fishing programs.
Certain state interests, however, are concerned about continuing efforts to amend this
legislation to, in their opinion, divert these funds from their primary and original intended
use — support of state fishery research and management programs. These critics view
the Sport Fish Restoration Program as the single most important source for state agency
funding of these activities, and note that diverting funds to other uses directly reduces
money available for state fishery programs.

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