Army Corps of Engineers: FY2020 Appropriations

Army Corps of Engineers: FY2020 Appropriations

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Updated December 23, 2019
Army Corps of Engineers: FY2020 Appropriations
Congress generally funds the civil works activities of the
of new construction projects and new studies (e.g., six
U.S. Army Corps of Engineers (USACE) in annual Energy
projects and six studies using FY2020 appropriations).
and Water Development appropriations acts. These
activities include planning and construction of water
Since the 112th Congress, earmark moratorium policies
resource projects and operation and maintenance of
have limited congressional direction of funding of site-
navigation improvements and certain multipurpose and
specific projects (i.e., congressionally directed spending or
flood control works (e.g., dams). For USACE civil works in
earmarks). Beginning in FY2012, Congress has provided
FY2020, President Trump requested $4.96 billion, inclusive
additional funding for categories of USACE work. In
of a May 13, 2019, amendment to the original request. As
FY2020, Congress provided $2.53 billion in additional
shown in Figure 1, Congress typically funds USACE above
funding for 26 categories of USACE activities. After
the President’s request. For FY2020, Congress provided
Congress enacts USACE’s appropriations, the
$7.65 billion (54% above the FY2020 request and 9%
Administration develops a work plan for the fiscal year. In
above FY2019 enacted) in Division C, Title I of H.R. 1865,
the work plan, the Administration identifies the authorized
Further Consolidated Appropriations Act, 2020, as signed
USACE projects receiving the additional funding.
by the President on December 20, 2019.
Figure 2. USACE Account Funding, FY2014-FY2020
Figure 1. Annual USACE Funding, FY2006-FY2020
(nominal $ in billions)
(nominal $ in billions)

Source: CRS using congressional appropriations documents and
President’s FY2020 budget request.
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
Source: Congressional Research Service (CRS) using President’s
Remedial Action Program. Congress did not adopt the request’s
budget requests and congressional appropriations documents.
proposal to create new USACE navigation-related accounts and did
not transfer FUSRAP to the Department of Energy as requested. The
USACE Funding and FY2020 Request
figure shows the FY2020 request using traditional USACE accounts.
Unlike federal agencies that distribute funds by formula or
through competitive grant programs, USACE directly
Selected FY2020 Topics of Deliberation
engages in project planning and construction. It uses most
of its appropriations for work on specific studies and
Navigation Funding
projects authorized by Congress. These activities are often
In FY2019, total USACE funding for navigation-related
cost shared with nonfederal project sponsors or users.
activities from various USACE budget accounts was
roughly $3.3 billion. The FY2020 request was $2.3 billion.
The FY2020 request prioritized maintaining performance of
The FY2020 work plan will determine FY2020 navigation
existing infrastructure, as reflected by the shares of funds
funding. Congress provided $378 million in FY2020
requested for construction and operations and maintenance
construction funds for a multiyear regional dredge
(O&M; see Figure 2). The request would have initiated no
demonstration program for deep-draft navigation in the
new studies or construction projects (referred to as new
Gulf of Mexico. Congress directed that the program explore
starts). In response to similar requests in recent years,
innovative means of executing dredging through combining
Congress has required USACE to start a specified number
work across multiple projects and construction and O&M.
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Army Corps of Engineers: FY2020 Appropriations
Receipts from federal taxes on navigation interests are
Construction Backlog and Upcoming Projects
deposited in the Harbor Maintenance Trust Fund (HMTF)
The FY2020 request sought to fund only ongoing
and the Inland Waterways Trust Fund (IWTF). The trust
navigation and flood risk reduction construction projects
funds are used in the discretionary appropriations process to
with benefit-cost ratios (BCRs) greater than 2.5 to 1 (i.e.,
pay for some USACE navigation activities. The HMTF
benefits at least two and a half times project costs) or
receives receipts from the Harbor Maintenance Tax (HMT)
projects that addressed safety concerns. Many
imposed on importers and domestic shippers using coastal
congressionally authorized USACE projects do not have
and Great Lakes ports. Harbor O&M appropriations have
BCRs that meet the Administration’s 2.5 BCR threshold for
not kept pace with HMT collections, resulting in an HMTF
budget development. A persistent challenge for USACE
balance of more than $9 billion. Stakeholders and
and decisionmakers is how to address the agency’s backlog
policymakers continue to discuss options and proposals for
of $98 billion in authorized USACE construction activities,
how to manage the HMTF balance and more closely align
including those projects with BCRs below the 2.5 threshold.
HMT collections and HMTF spending.
A question for policymakers is whether—and, if so, how—
to advance projects in the backlog. The size of the backlog
For inland waterways, the federal government pays for
is determined in part by the level of appropriations and in
most O&M. Most inland waterway construction and major
part by additional project authorizations. USACE is
rehabilitation costs are shared by the federal government
currently planning various projects that each may cost
(50%) and commercial users through the IWTF (50%).
multiple billions of dollars to construct. The scale of the
Availability of IWTF funds has at times constrained
investments required to accomplish the authorized projects
spending on waterway construction. IWTF monies derive
and the projects being studied may further challenge the
primarily from a $0.29 per gallon fuel tax on commercial
current approach to federal participation in water resource
vessels on designated federal waterways. IWTF receipts
projects. Nonfederal project sponsors and federal
and interest in FY2019 were $121 million. The FY2020
policymakers are exploring options for project financing
request was for $56 million from the IWTF. For FY2020,
and for sharing costs and responsibilities among project
Congress provided for $131 million from the IWTF and
sponsors and beneficiaries.
included language reducing the IWTF contribution for the
Chickamauga Lock construction in Tennessee to 35%.
Alternative Financing and Delivery
Congress did not adopt the Administration’s proposal to
Recent Congresses have authorized enhanced nonfederal
apply an annual user fee on inland waterway commercial
and private participation in USACE projects. Congress has
vessels to be used for waterway construction and for 10%
expanded the agency’s authorities to reimburse or credit
of waterway O&M.
nonfederal project sponsors for nonfederal work completed
on authorized projects. In addition to post-construction
Ecosystem Restoration and Flood Risk Reduction
reimbursement, Congress in Section 1043 of the Water
The May 2019 amendment to the FY2020 request sought
Resources Reform and Development Act 2014 (WRRDA
increased restoration funding for the Everglades from $69
2014; P.L. 113-121) authorized the transfer of federal funds
million to $205 million. The amendment brought the
to nonfederal entities to use for the construction of
request’s FY2020 total for USACE aquatic ecosystem
authorized USACE projects. The FY2020 request proposed
restoration efforts to $324 million. The FY2020 work plan
to transfer $150 million to these entities. It also proposed to
will determine which restoration activities receive
accelerate project construction by applying $150 million in
additional funding and the total restoration funding for the
federal funds in conjunction with excess or advanced
year.
funding by nonfederal entities. Congress adopted neither
proposal. Projects using alternative delivery approaches
Recently, Congress has provided more funding for
remain eligible for the additional funds provided by
USACE’s flood risk reduction projects through
Congress.
supplemental appropriations than through annual
appropriations. Together, P.L. 115-123 and P.L. 116-20
For FY2020, neither the Administration nor Congress
funded USACE’s
provided almost $16 billion in emergency supplemental
implementation of the Water
appropriations for construction of USACE flood risk
Infrastructure Finance and Innovation Act (WIFIA),
reduction projects in qualifying states and territories. The
authorized in WRRDA 2014. The U.S. Environmental
FY2020 request for flood risk reduction was $1.0 billion, of
Protection Agency (EPA) has an operating WIFIA program,
which $209 million would have been for construction. The
which issued its first loan in 2018. In P.L. 115-270,
FY2020 work plan will determine the total FY2020 flood
Congress authorized EPA to enter into interagency
risk reduction funding.
agreements to administer WIFIA programs for other
agencies. Congress’s consideration of water resource
Continuing Authorities Programs
project financing and delivery may continue during
Congress consistently has funded multiple USACE
deliberations on future USACE appropriations and
Continuing Authorities Programs (CAPs) to plan and
authorizations on broader infrastructure initiatives. For
construct projects of limited scope and cost. The FY2020
more information on USACE funding, see CRS Report
budget request proposed $4 million in aggregate for four
R45326, Army Corps of Engineers Annual and
CAPs. Congress provided almost $72 million for nine CAP
Supplemental Appropriations: Issues for Congress.
authorities for FY2020. (See CRS In Focus IF11106, Army
Nicole T. Carter, Specialist in Natural Resources Policy
Corps of Engineers: Continuing Authorities Programs.)
Anna E. Normand, Analyst in Natural Resources Policy
IF11137
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Army Corps of Engineers: FY2020 Appropriations

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https://crsreports.congress.gov | IF11137 · VERSION 3 · UPDATED