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Army Corps of Engineers: FY2020 Appropriations
Congress generally funds the civil works activities of the
reduction construction projects with benefit-cost ratios
U.S. Army Corps of Engineers (USACE) in annual Energy
(BCRs) greater than 2.5 to 1 (i.e., benefits are at least two
and Water Development appropriations acts. These
and a half times project costs) or projects that address safety
activities include planning and construction of water
concerns. Many congressionally authorized USACE
resource projects and operation and maintenance of
projects do not have BCRs that meet the Administration’s
infrastructure and navigation improvements managed by
2.5 BCR threshold for budget development.
USACE (e.g., navigation channels). For USACE civil
works, President Trump requested $5.0 billion for FY2020,
Figure 2. USACE Account Funding, FY2013-FY2020
inclusive of a May 13, 2019, amendment to the President’s
(nominal $ in bil ions)
request. 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 is 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 bil ions)
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
Source: Congressional Research Service (CRS).
have limited directed congressional funding of site-specific
projects (i.e., congressionally directed spending or
USACE Funding and FY2020 Request
earmarks). In recent years, Congress has provided
Unlike federal agencies that distribute funds by formula or
additional funding for categories of USACE work. For
through competitive grant programs, USACE directly
example, in FY2019, Congress provided $2.0 billion in
engages in project planning and construction. It uses most
additional funding for 25 categories of USACE activities.
of its appropriations for work on specific studies and
After Congress enacts USACE’s appropriations, the
projects authorized by Congress. These activities are often
Administration develops a work plan for the fiscal year. In
cost shared with nonfederal project sponsors or users.
the work plan, the Administration identifies the authorized
USACE projects receiving the additional funding.
The FY2020 request prioritizes maintaining performance of
existing infrastructure, as reflected by the share of funds
Selected FY2020 Topics of Deliberation
requested for operations and maintenance (O&M; see
Figure 2). The request would initiate no new studies or
Navigation Funding
construction projects (referred to as new starts). In response
Receipts from federal taxes on navigation interests are
to similar requests in recent years, Congress has required
deposited into two trust funds—the Harbor Maintenance
USACE to start a specified number of new construction
Trust Fund (HMTF) and the Inland Waterways Trust Fund
projects and new studies (e.g., five projects and six studies
(IWTF). The trust funds are used in the discretionary
using FY2019 appropriations). The FY2020 request also
appropriations process to pay for some USACE navigation
seeks to limit funding to ongoing navigation and flood risk
activities. In FY2019, USACE funding for its navigation-
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Army Corps of Engineers: FY2020 Appropriations
related activities is expected to reach $3.3 billion. The
Continuing Authorities Programs
FY2020 request is for $2.3 billion. The FY2020 request
Congress has consistently funded eight Continuing
proposed establishing a USACE budget account for the
Authorities Programs (CAPs) for USACE to plan and
HMTF and IWTF to directly fund USACE projects (rather
construct projects of limited scope and cost (e.g., $66
than the current practice of having USACE be reimbursed
million in FY2019). The President’s FY2020 budget
for eligible HMTF and IWTF expenses).
request proposes $4 million in aggregate for four CAPs,
with no funding requested for four of the commonly
The HMTF receives receipts from the Harbor Maintenance
appropriated CAPs (see CRS In Focus IF11106, Army
Tax (HMT) imposed on importers and domestic shippers
Corps of Engineers: Continuing Authorities Programs).
using coastal and Great Lakes ports. Harbor O&M
appropriations have not kept pace with HMT collections,
Construction Backlog and Upcoming Projects
resulting in a $9 billion HMTF balance. The Water
A persistent challenge for USACE is how to address its
Resources Reform and Development Act of 2014 (WRRDA
backlog of $98 billion in authorized USACE construction
2014; P.L. 113-121) adopted spending targets for harbor
activities. A question for policymakers is whether—and, if
maintenance based on a percentage of HMT receipts.
so, how—to advance projects in the backlog. The size of
Stakeholders and policymakers continue to discuss options
the backlog is determined in part by the level of
and proposals for how to manage the HMTF balance and
appropriations and in part by additional project
more closely align HMT collections and HMTF spending.
authorizations. USACE is currently planning multiple
The FY2020 USACE request proposes to use almost $1.0
projects that may cost billions to construct. For example, in
billion in HMTF funds. The WRRDA 2014 target for
the October 2018 draft feasibility study for the Coastal
FY2020 is estimated at roughly $1.2 billion.
Texas Protection and Restoration project, USACE estimates
the project’s construction cost to be between $23 billion
For inland waterways, the federal government pays for
and $32 billion. A February 2019 interim report for the
most O&M. Most inland waterway construction and major
New York/New Jersey Harbor and Tributaries study to
rehabilitation costs are shared by the federal government
reduce coastal storm risk in and near New York City
(50%) and commercial users through the IWTF (50%).
includes alternatives with construction costs ranging from
Availability of IWTF funds has at times constrained
$12 billion to $100 billion. Other ongoing studies of large-
spending on waterway construction. IWTF monies derive
scale projects include the Great Lakes and Mississippi
primarily from a fuel tax on commercial vessels on
River Interbasin Study to control aquatic nuisance species
designated federal waterways. In P.L. 113-295, Congress
in the Midwest (principally the Asian carp). The scale of
authorized a $0.09 per gallon increase in the fuel tax. This
the investments required to accomplish the authorized
change increased collections above $100 million (e.g., $115
projects and the projects being studied may further
million was collected in FY2018). The FY2020 request is
challenge the current approach to federal participation in
for $55.5 million in IWTF spending for waterway
water resource projects. Nonfederal project sponsors and
construction. In the FY2020 request, the Administration
federal policymakers are exploring options for project
also proposes applying an annual user fee on inland
financing and for sharing costs and responsibilities among
waterway commercial vessels to be used for waterway
project sponsors and beneficiaries.
construction and for 10% of waterway O&M.
Alternative Financing and Delivery
Ecosystem Restoration and Flood Risk Reduction
Recent Congresses have authorized enhanced nonfederal
The President’s May 2019 amendment to the FY2020
and private participation in USACE projects. Congress has
budget request increased restoration funding for the
expanded the agency’s authorities to reimburse or credit
Everglades from $69 million to $205 million. The
nonfederal project sponsors for nonfederal work completed
amendment brought the request’s FY2020 total for USACE
on authorized projects. In addition to post-construction
aquatic ecosystem restoration efforts to $324 million. The
reimbursement, Congress in Section 1043 of WRRDA 2014
FY2019 work plan designates $448 million for ecosystem
authorized the transfer of federal funds to nonfederal
restoration, including $111 million for the Everglades.
entities to use for the construction of authorized USACE
projects. The FY2020 request proposes to transfer $150
Recently, Congress has provided more funding for
million to these entities. It also proposes to accelerate
USACE’s flood risk reduction projects through
project construction by applying $150 million in federal
supplemental appropriations than through annual
funds in conjunction with excess or advanced funding by
appropriations. For example, the Bipartisan Budget of Act
nonfederal entities. Similar to recent years, the FY2020
of 2018 (P.L. 115-123) provided $15 billion in emergency
request does not propose USACE funding for water
supplemental appropriations for construction of USACE
resource projects financed under the Water Infrastructure
flood risk reduction projects in qualifying states and
Finance and Innovation Act, authorized by Congress in
territories. Of the FY2019 annual appropriations provided
WRRDA 2014. Congress has directed the agency to
by Congress, USACE is using $2.0 billion for flood risk
develop the structure for the program. However, it is not yet
reduction, of which $1.0 billion is for construction. The
operational. The 116th Congress’s consideration of water
FY2020 request for flood risk reduction is $1.0 billion, of
resource project financing and delivery may occur during
which $0.2 billion would be for construction.
deliberations on USACE appropriations and authorization
legislation as well as during discussions of broader
infrastructure initiatives.
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Army Corps of Engineers: FY2020 Appropriations
Anna E. Normand, Analyst in Natural Resources Policy
IF11137
Nicole T. Carter, Specialist in Natural Resources Policy
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