Army Corps of Engineers: FY2019 Appropriations

Army Corps of Engineers: FY2019 Appropriations

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Updated November 16, 2018
Army Corps of Engineers: FY2019 Appropriations
Congress generally funds the civil works activities of the
moratoriums. Following adoption of the moratoriums,
U.S. Army Corps of Engineers (USACE) in an annual
Congress has provided additional funding for categories of
Energy and Water Development appropriations act. These
USACE work, in lieu of increasing funding for specific
activities consist primarily of planning and constructing
projects. P.L. 115-244 provides $2.21 billion more than the
water resource projects and maintaining federal
President’s request. H.Rept. 115-929 (the conference report
infrastructure operated by USACE (e.g., navigation
accompanying P.L. 115-244) identifies $1.95 billion of the
channels). For USACE civil works, President Trump
increase as additional funding for 25 categories of USACE
requested $4.8 billion for FY2019. Congress typically funds
activities. H.Rept. 115-929 requires the Administration to
USACE above the President’s request (see Figure 1). P.L.
publish an FY2019 work plan identifying the specific
115-244 (Energy and Water, Legislative Branch, and
activities it has selected to receive additional funding.
Military Construction and Veterans Affairs Appropriations
USACE is anticipated to publish the FY2019 work plan by
Act, 2019) provides $7.0 billion for USACE civil works.
the end of 2018.
This In Focus provides a primer on USACE appropriations
for FY2019 and selected topics related to congressional
Figure 2. USACE Account Funding, FY2012-FY2019
deliberations. These topics include navigation funding,
(nominal $ in billions)
flood risk reduction and ecosystem restoration projects,
construction backlog and upcoming projects, and
alternative financing.
Figure 1. Annual USACE Funding, FY2005-FY2019
(nominal $ in billions)

Source: CRS.
Notes: ASA = Assistant Secretary of the Army. Regulatory = Permit
program for nonfederal activities affecting regulated waters and
wetlands. FUSRAP = Formerly Utilized Sites Remedial Action
Program. Amounts do not include supplemental appropriations.
According to the Administration’s FY2019 budget
Source: Congressional Research Service (CRS).
documents, the request prioritized maintaining performance

of existing infrastructure. The request would have initiated
FY2019 Request and FY2019 Funding
no new studies or construction projects (referred to as new
Unlike federal funding for highways and municipal water
starts). It sought to limit funding to ongoing navigation and
infrastructure, federal funds provided to USACE are not
flood risk reduction construction projects with benefit-cost
distributed by formula to states or through a competitive
ratios (BCRs) greater than 2.5 to 1 (i.e., project benefits are
grant program. Instead, the agency directly engages in
at least two and a half times project costs) or projects that
project planning and construction. It uses most of its
address safety concerns. However, enacted appropriations
appropriations to work on specific studies and projects
for FY2019 require USACE to start five new construction
authorized by Congress. Congress appropriates USACE
projects and six new studies. Many congressionally
funding at the account level. The two largest accounts are
authorized USACE projects do not have BCRs that meet
Operations and Maintenance (O&M) and Construction (see
the 2.5 BCR threshold. In the course of identifying
Figure 2), which received $3.74 billion and $2.18 billion,
activities to receive the additional funding provided by
respectively, for FY2019.
Congress, H.Rept. 115-929 directs the Administration to
follow the congressional guidance provided therein and not
Since the 112th Congress, congressional funding for site-
disqualify projects based on Administration budget metrics.
specific projects (i.e., congressionally directed spending or
For more background on USACE appropriations, see CRS
earmarks) has been subject to House and Senate earmark
Report R45326, Army Corps of Engineers Annual and
https://crsreports.congress.gov

Army Corps of Engineers: FY2019 Appropriations
Supplemental Appropriations: Issues for Congress, by
for USACE. Of the $17.4 billion for USACE in BBA 2018,
Nicole T. Carter.
$15.0 billion is for construction of USACE flood risk
reduction projects in qualifying states and territories
Selected FY2019 Topics of Deliberation
(33 states and 3 territories). In contrast, H.Rept. 115-929
indicates that $630 million is available in FY2019 for
Navigation Funding
construction of flood risk reduction projects; the work plan
Receipts from federal taxes on navigation interests are
also may direct funds to these projects.
deposited into two trust funds—the Inland Waterways Trust
For FY2019, the President requested $224 million for
Fund (IWTF) and the Harbor Maintenance Trust Fund
USACE aquatic ecosystem restoration efforts, which was
(HMTF). The trust funds are used in the discretionary
down from the FY2018 request ($335 million) and the
appropriations process to pay for some USACE navigation
FY2018 work plan ($469 million). The FY2019 work plan
activities. USACE funding of navigation-related activities
is to establish how additional funding provided by Congress
is expected to exceed $3 billion in FY2019.
supports USACE ecosystem restoration.
For inland waterways, the federal government pays for
Construction Backlog and Upcoming Projects
most O&M. In contrast, most inland waterway construction
A persistent challenge for USACE is how to manage its $96
and major rehabilitation costs are shared by the federal
billion (according to a USACE estimate in early 2018) in
government (50%) and commercial users through the IWTF
construction activities that are eligible for federal
(50%). Availability of IWTF funds has at times constrained
appropriations, often referred to as its construction backlog.
spending on waterway construction. IWTF monies derive
For FY2019, annual USACE construction appropriations
primarily from a fuel tax on commercial vessels on
total $2.18 billion. A question for policymakers is
designated federal waterways. In P.L. 113-295, Congress
whether—and, if so, how—to advance projects in the
authorized a $0.09 per gallon increase in the fuel tax,
backlog. Despite the backlog, Congress continues to direct
resulting in a barge fuel tax of $0.29 per gallon. As part of
the agency to study additional projects for future
its FY2019 request, the Administration submitted a
construction authorization.
proposal to increase IWTF receipts by establishing a new
user fee on vessels transporting commercial cargo on inland
USACE is currently planning multiple projects that are
waterways and to allow the IWTF to cover 10% of O&M
larger in scale than most past USACE projects. These
expenses. P.L. 115-244 did not adopt the Administration’s
include the Coastal Texas Protection and Restoration
proposal. P.L. 115-244 reduces from 50% to 15% the
feasibility study for a project with an estimated cost of
contribution of the IWTF to the construction of the
$23 billion-$32 billion. Other studies of large-scale projects
Chickamauga lock on the Tennessee River during FY2019,
include the Great Lakes and Mississippi River Interbasin
thereby increasing IWTF funds available for other projects.
study to control aquatic nuisance species (principally the
Asian carp) and the New York/New Jersey Harbor &
The HMTF receives receipts from the harbor maintenance
Tributaries study to reduce coastal storm risk for New York
tax (HMT). The tax is 12.5 cents per $100 of cargo value. It
City and nearby areas. Given the scale of federal and
is imposed on importers and domestic shippers using
nonfederal investments that would be needed to accomplish
coastal and Great Lakes ports. Congress makes HMTF
USACE projects being studied and in the construction
funds available to reimburse USACE for O&M expenses at
backlog, policymakers and project sponsors are exploring
coastal and inland harbors. In some years, appropriations
options for construction financing and contracting and for
for harbor O&M have not kept pace with HMT collections,
sharing costs and responsibilities among project sponsors
resulting in a balance of $9 billion-$10 billion in the
and beneficiaries.
HMTF. The Water Resources Reform and Development
Act of 2014 (WRRDA 2014; P.L. 113-121) included
Alternative Financing
provisions to promote more harbor maintenance through
Recent Congresses authorized opportunities for nonfederal
greater HMTF spending. It adopted spending targets based
and private participation in USACE projects. The Water
on a percentage of HMT receipts. The President’s FY2019
Infrastructure Finance and Innovation Act of 2014 (WIFIA;
request proposed reducing the HMT to align the tax’s
Title V, Subtitle C of WRRDA 2014) authorized credit
receipts with HMTF expenditures. The 115th Congress has
programs for USACE and the U.S. Environmental
not adopted the proposal. HMTF spending in FY2019 is
Protection Agency (EPA). Although USACE’s water
anticipated to be close to annual HMTF collections (around
resource-focused WIFIA program was not in the FY2019
$1.5 billion in FY2018). Stakeholders and policymakers
budget request, the President’s Legislative Outline for
continue to discuss options and proposals for the HMTF
Rebuilding Infrastructure in America proposed expanding
balance.
the EPA-operated WIFIA program to nonfederal water
resource projects, including deauthorized USACE projects.
Flood Risk Reduction and Ecosystem Restoration
America’s Water Infrastructure Act (AWIA; P.L. 115-270)
In recent years, Congress has funded more USACE flood
extended and amended EPA’s WIFIA program; AWIA
risk reduction studies and construction projects through
largely did not alter USACE’s WIFIA program. H.Rept.
supplemental appropriations than through annual
115-929 directs USACE to develop its approach for public-
appropriations. Not all states or territories, however, have
private partnerships and WIFIA.
been eligible for these funds. For example, Congress
enacted the Bipartisan Budget Act of 2018 (BBA 2018;
Nicole T. Carter, Specialist in Natural Resources Policy
P.L. 115-123), which included supplemental appropriations
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Army Corps of Engineers: FY2019 Appropriations

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