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March 15, 2019
Army Corps of Engineers: FY2020 Appropriations
Congress generally funds the civil works activities of the
greater than 2.5 to 1 (i.e., project benefits are at least two
U.S. Army Corps of Engineers (USACE) in an annual
and a half times project costs) or projects that address safety
Energy and Water Development appropriations act. These
concerns. Many congressionally authorized USACE
activities include the planning and construction of water
projects do not have BCRs that meet the Administration’s
resource projects and the operations and maintenance of
2.5 BCR budget development threshold.
infrastructure and navigation improvements managed by
USACE (e.g., navigation channels). For USACE civil
Figure 2. USACE Account Funding, FY2013-FY2020
works, President Trump requested $4.8 billion for FY2020.
(nominal $ in billions)
As shown in Figure 1, Congress typically funds USACE
above the President’s request for the year (e.g., $7.0 billion
for FY2019). This In Focus provides a primer on the
USACE appropriations process for FY2020. For more
information on USACE funding, see CRS Report R45326,
Army Corps of Engineers Annual and Supplemental
Appropriations: Issues for Congress
.
Figure 1. Annual USACE Funding, FY2006-FY2020
(nominal $ in billions)

Source: CRS.
Notes: Req = Budget request. ASA = Assistant Secretary of the
Army. Regulatory = Permit program for nonfederal activities affecting
regulated waters and wetlands. FUSRAP = Formerly Utilized Sites
Remedial Action Program. FY2020 request proposes to transfer
FUSRAP to Department of Energy. FY2020 request renews an
FY2019 proposal to create two new navigation-related accounts; the
figure shows funding for FY2020 in traditional USACE accounts.
Since the 112th Congress, earmark moratorium policies
have limited congressional funding for site-specific projects
(i.e., congressionally directed spending or earmarks). In
Source: Congressional Research Service (CRS).
lieu of adding or increasing funding for specific USACE
USACE Funding and FY2020 Request
projects, Congress has provided additional funding for
Unlike federal agencies that distribute funds by formula or
categories of USACE work. For example, in FY2019,
through competitive grant programs, USACE directly
Congress provided $2.0 billion in additional funding for 25
engages in project planning and construction. It uses most
categories of USACE activities. After Congress enacts the
agency’s appropriations, the Administration develops a
of its appropriations to work on specific studies and
projects authorized by Congress. These activities are often
USACE work plan for the fiscal year. In the work plan, the
Administration identifies the authorized USACE activities
cost shared with nonfederal project sponsors or users.
and projects receiving the additional funding.
The FY2020 request prioritizes maintaining performance of
Selected FY2020 Topics of Deliberation
existing infrastructure, as reflected by the share of funds
requested for operations and maintenance (O&M; see
Navigation Funding
Figure 2). It would initiate no new studies or construction
projects (referred to as new starts). In response to similar
Receipts from federal taxes on navigation interests are
requests in recent years, Congress has required USACE to
deposited into two trust funds—the Harbor Maintenance
start a specified number of new construction projects and
Trust Fund (HMTF) and the Inland Waterways Trust Fund
new studies (e.g., five new construction projects and six
(IWTF). The trust funds are used in the discretionary
new studies in FY2019). The FY2020 request also seeks to
appropriations process to pay for some USACE navigation
limit funding to ongoing navigation and flood risk reduction
activities. In FY2019, USACE funding for its navigation-
construction projects with benefit-cost ratios (BCRs)
related activities is expected to reach $3.3 billion; the
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Army Corps of Engineers: FY2020 Appropriations
FY2020 request is for $2.3 billion. The FY2020 request
construct projects of limited scope and cost (e.g., $66
proposed establishing a USACE budget account for the
million in FY2019). The President’s FY2020 budget
HMTF and IWTF to fund USACE projects directly (rather
request proposes $4 million in aggregate for four CAPs,
than the current practice of having USACE be reimbursed
with no funding requested for four of the commonly
for eligible HMTF and IWTF expenses).
appropriated CAPs (see CRS In Focus IF11106, Army
Corps of Engineers: Continuing Authorities Programs
).
The HMTF receives receipts from the Harbor Maintenance
Tax (HMT), which is imposed on importers and domestic
Construction Backlog and Upcoming Projects
shippers using coastal and Great Lakes ports. Harbor O&M
A persistent challenge for USACE is how to manage its
appropriations have not kept pace with HMT collections,
construction backlog—the $98 billion in USACE
resulting in a $9 billion HMTF balance. The Water
construction activities that are eligible for federal
Resources Reform and Development Act of 2014 (WRRDA
appropriations (according to USACE in March 2019). A
2014; P.L. 113-121) adopted spending targets for harbor
question for policymakers is whether—and, if so, how—to
maintenance based on a percentage of HMT receipts.
advance projects in the backlog. The future backlog is
Stakeholders and policymakers continue to discuss options
determined in part by the level of appropriations and in part
and proposals for how to manage the HMTF balance and
by additional project authorizations. USACE is currently
more closely align HMT collections and HMTF spending.
planning multiple projects that may cost billions to
The FY2020 USACE request proposes to use almost $1.0
construct. For example, in the draft feasibility study for the
billion in HMTF funds; the WRRDA 2014 target for
Coastal Texas Protection and Restoration project, USACE
FY2020 is estimated at roughly $1.2 billion.
estimates the project’s construction cost to be between
$23 billion and $32 billion. Other ongoing studies of large-
For inland waterways, the federal government pays for
scale projects include the Great Lakes and Mississippi
most O&M. Most inland waterway construction and major
River Interbasin Study to control aquatic nuisance species
rehabilitation costs are shared by the federal government
in the Midwest (principally the Asian carp) and the New
(50%) and commercial users through the IWTF (50%).
York/New Jersey Harbor and Tributaries study to reduce
Availability of IWTF funds has at times constrained
coastal storm risk in and near New York City. The scale of
spending on waterway construction. IWTF monies derive
the investments required to accomplish the authorized
primarily from a fuel tax on commercial vessels on
projects and the projects being studied may further
designated federal waterways. In P.L. 113-295, Congress
challenge the current approach to federal funding and
authorized a $0.09 per gallon increase in the fuel tax; this
participation in water resource projects. Policymakers and
change increased collections above $100 million (e.g., $115
project sponsors are exploring options for project financing
million was collected in FY2018). The FY2020 request is
and contracting and for sharing costs and responsibilities
for $55.5 million in IWTF spending for waterway
among project sponsors and beneficiaries.
construction. In the FY2020 request, the Administration
also proposes applying an annual user fee on inland
Alternative Financing and Delivery
waterway commercial vessels to be used for waterway
Recent Congresses have authorized enhanced nonfederal
construction and for 10% of waterway O&M.
and private participation in USACE projects. Congress has
expanded the agency’s authorities to reimburse or credit
Ecosystem Restoration and Flood Risk Reduction
nonfederal project sponsors for nonfederal work completed
For FY2020, the President requested $187 million for
on authorized projects. In addition to post-construction
USACE aquatic ecosystem restoration efforts, including
reimbursement, Congress in Section 1043 of WRRDA 2014
$62 million for Everglades restoration. The FY2019 work
authorized the transfer of federal funds to nonfederal
plan provides that $448 million of the FY2019 annual
entities to use for the construction of authorized USACE
appropriations be used on USACE ecosystem restoration,
projects; the FY2020 request proposes to transfer $150
including $104 million for Everglades.
million to these entities. It also proposes to accelerate
project construction by applying $150 million in federal
Recently, Congress has provided more funding for
funds in conjunction with excess or advanced funding by
USACE’s flood risk reduction projects through
nonfederal entities. Similar to recent years, the FY2020
supplemental appropriations than through annual
request does not propose USACE funding for water
appropriations. That is, the Bipartisan Budget of Act of
resource projects financed under the Water Infrastructure
2018 (P.L. 115-123) provided $15 billion in emergency
Finance and Innovation Act (WIFIA), authorized by
supplemental appropriations (which are available until
Congress in WRRDA 2014. Congress has directed the
expended) for construction of USACE flood risk reduction
agency to develop the structure for the program; however, it
projects in qualifying states and territories. Of the FY2019
is not yet operational. The 116th Congress’s consideration
annual appropriations provided by Congress, USACE is
of water resource project financing and delivery may occur
using $2.0 billion for flood risk reduction activities, of
during deliberations on USACE appropriations and
which $1.0 billion is for construction activities. The
authorization legislation as well as during discussions of
FY2020 request for flood risk reduction is $1.0 billion, of
broader infrastructure initiatives.
which $0.2 billion would be for construction.
Nicole T. Carter, Specialist in Natural Resources Policy
Continuing Authorities Programs
Anna E. Normand, Analyst in Natural Resources Policy
Congress has consistently funded eight Continuing
Authorities Programs (CAPs) for USACE to plan and
IF11137
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Army Corps of Engineers: FY2020 Appropriations


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