Army Corps of Engineers: FY2018 Appropriations

Army Corps of Engineers: FY2018 Appropriations

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Updated April 2, 2018
Army Corps of Engineers: FY2018 Appropriations
Congress generally funds the civil works activities of the
FY2018 Request
U.S. Army Corps of Engineers (Corps) in Title I of an
According to the Administration’s FY2018 budget
annual Energy and Water Development appropriations act.
documents, the request prioritized maintaining performance
These activities consist primarily of planning and
of existing infrastructure. It included no funding for new
constructing water resource projects and maintaining
Corps studies or new construction projects (known as new
federal infrastructure operated by the Corps (e.g.,
starts). The request proposed funding only ongoing
navigation channels). Congress directs the agency’s role in
navigation and flood-risk reduction construction projects
improving navigation, reducing flood risks, and restoring
that had a benefit-cost ratio (BCR) of at least 2.5 to 1 (i.e.,
aquatic ecosystems through authorization and
project benefits are at least two and a half times project
appropriations legislation. The President requested $5.0
costs) or addressed a safety concern. Previous requests also
billion for the civil works activities of the Corps in FY2018;
applied BCR thresholds and limited new starts to focus on
Congress funded these activities at $6.83 billion in P.L.
ongoing work. Many authorized projects have BCRs below
115-141, enacted on March 23, 2018 (see Figure 1). The
the budget threshold.
discussion herein provides a primer on Corps FY2018
appropriations; topics covered include the President’s
Figure 2. Corps Funding by Account, FY2012-FY2018
request, additional funding provided by Congress, harbor
(nominal $ in bil ions)
maintenance, inland waterway construction, ecosystem
restoration, and flood-risk reduction, as well as efforts to
promote investment in water resource infrastructure.
Figure 1. Annual Corps Funding, FY2004-FY2018
(nominal $ in bil ions)

Source: CRS.
Notes: ASA = Assistant Secretary of the Army. Regulatory =
Regulatory program for permitting nonfederal activities in or affecting
regulated waters and wetlands. FUSRAP = Formerly Utilized Sites
Remedial Action Program.
Additional Funding Provided by Congress
Since the 112th Congress, congressional funding for site-
specific projects (i.e., congressionally directed spending or
Source: Congressional Research Service (CRS).
earmarks) has been subject to House and Senate earmark
moratorium policies. As shown in Figure 1, Congress
Corps FY2018 Appropriations
typically provides the Corps with more funding than
Unlike with federal funding for highways and municipal
requested. Since the 112th Congress, in lieu of increasing
water infrastructure, the majority of federal funds provided
funding for specific projects, Congress has provided
to the Corps are not distributed by formula to states or
funding within some budget accounts for categories of
through competitive grant programs. Instead, the agency is
Corps activities referred to as additional funding (e.g., $341
directly engaged in the planning and construction of
million of additional funding for deep-draft navigation
projects, and the Corps uses the majority of the
maintenance in the O&M account). For FY2018, Congress
appropriations performing work on specific studies and
provided the agency $1.83 billion above the request; of this,
projects authorized by Congress. Corps funding is requested
$1.75 billion was identified as additional funding in four
at the account level, with the two largest accounts being
budget accounts (see Figure 3). The explanatory statement
Operations and Maintenance (O&M) and Construction (see
accompanying P.L. 115-141 identified a total of 27
Figure 2).
categories of activities eligible for these additional funds.
Congress allowed FY2018-enacted funding to be used to
initiate new starts—five new construction projects and
seven new studies (including one new Mississippi River
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Army Corps of Engineers: FY2018 Appropriations
and Tributaries account study). The bill’s explanatory
Ecosystem Restoration
statement calls for the agency, within 60 days of enactment,
The President requested $355 million for ongoing Corps
to issue a work plan that includes the specific projects
ecosystem restoration efforts, including Florida Everglades
receiving additional funding and selected as new starts.
restoration ($76.5 million) and fish mitigation for the
Northwest’s Columbia River ($70 million). Congress
Figure 3. Additional Funding in FY2012-FY2018
provided these funds and $35 million in additional funding
(nominal $ in bil ions)
for environmental restoration and compliance in the
Construction account.
Flood-Risk Reduction
The FY2018 request included $265 million to continue
seven construction projects addressing aging federal flood
infrastructure (e.g., dam safety, seepage control, or major
dam rehabilitation) and six riverine construction projects
for flood-risk reduction. Congress provided these funds, as
well as additional funding of $410 million for flood-related
construction. In separate legislation (P.L. 115-123),
Congress provided the Corps with $17.4 billion in
emergency supplemental appropriations for Corps activities
primarily (but not exclusively) related to response and
flood-risk-reduction construction associated with
Sources: CRS, using congressional reports accompanying
Hurricanes Harvey, Irma, and Maria.
appropriations.
Promotion of Infrastructure Investments
FY2018 Topics
The 113th and 114th Congresses enacted legislation that
expanded the authorized opportunities for nonfederal and
Harbor Maintenance
private participation in Corps-related water resource
Deep-draft harbors handle a large volume of U.S. imports
projects; the bills also augmented the agency’s authorities
and exports. The Harbor Maintenance Trust Fund (HMTF)
to accept contributions to advance studies and projects. The
receives harbor maintenance taxes (12.5 cents per $100 of
Trump Administration’s 2018 Budget: Infrastructure
cargo value) from importers and domestic shippers using
Initiative supported using the agency’s expanded authorities
coastal and Great Lakes ports. HMTF funds are made
to accept contributed funds (which are nonreimbursable
available by Congress for most O&M expenses at U.S.
donations to the Corps) and advanced funds (which are
harbors, including coastal and inland harbors. Discretionary
nonfederal funds provided to the agency that may be
appropriations that draw from the HMTF often have not
reimbursed subject to the availability of appropriations).
kept pace with tax collections. A roughly $9 billion HMTF
Information is not publicly available on the recent
surplus has developed. An omnibus Corps authorization
aggregate use of advanced and contributed funds.
bill, the Water Resources Reform and Development Act of
2014 (WRRDA 2014), included provisions to promote
In the explanatory statement for P.L. 115-141, Congress
greater HMTF spending. Based on the WRRDA 2014-
directed the Corps to develop guidance for public-private
established formula, the targeted level of HMTF
partnerships and for a pilot program for nonfederal
expenditures would be roughly $1.05 billion for FY2018;
implementation of authorized water resource projects. To
enacted FY2018 harbor maintenance appropriations appear
encourage alternative financing for water infrastructure,
to exceed the targeted expenditures.
Congress authorized a credit program in the Water
Infrastructure Finance and Innovation Act of 2014 (WIFIA;
Inland Waterway Construction
Title V, Subtitle C of WRRDA 2014). Although the U.S.
Although the federal government pays for most inland
Environmental Protection Agency’s WIFIA program has
waterway O&M, the costs of most inland waterway
been funded, the Corps water resource-focused WIFIA
construction and major rehabilitation are shared between
program remained unfunded in FY2018.
the federal government (50%) and users through the Inland
Waterways Trust Fund (IWTF, 50%). IWTF monies derive
Related CRS Reports
primarily from a fuel tax on commercial vessels on federal
 CRS Report R41243, Army Corps of Engineers: Water
waterways. In P.L. 113-295, Congress authorized a $0.09
Resource Authorizations, Appropriations, and Activities,
per gallon increase in the barge fuel tax, resulting in $0.29
by Nicole T. Carter and Charles V. Stern.
per gallon tax as of April 2015. The FY2018 budget request
proposed an inland waterway user fee estimated to collect
 CRS Report R44594, Discount Rates in the Economic
an additional $108 million annually; Congress did not adopt
Evaluation of U.S. Army Corps of Engineers Projects,
the proposal. The explanatory statement accompanying P.L.
by Nicole T. Carter and Adam C. Nesbitt.
115-141 recommended $112 million in inland waterway
construction funding to be derived from the IWTF. The
Nicole T. Carter, Specialist in Natural Resources Policy
inland waterway projects to be funded with the FY2018
IF10671
appropriations are to be identified in the work plan.
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Army Corps of Engineers: FY2018 Appropriations

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