Surface Transportation Reauthorization and the America’s Transportation Infrastructure Act (S. 2302)

Surface Transportation Reauthorization and the America’s Transportation Infrastructure Act (S. 2302)

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September 3, 2019
Surface Transportation Reauthorization and the America’s
Transportation Infrastructure Act (S. 2302)
Surface transportation programs are currently authorized
The apportionment of formula funds authorized by ATIA
through FY2020 by the Fixing America’s Surface
would provide the states the same annual average share of
Transportation Act (FAST Act; P.L. 114-94). In a step
the nationwide apportionments that they received under the
toward FAST Act reauthorization, the Senate Environment
FAST Act, but the dollar amounts would be roughly 19%
and Public Works Committee (EPW) on August 1, 2019,
greater. HTF contract authority can be obligated without an
reported the America’s Transportation Infrastructure Act of
appropriation. ATIA also would authorize almost $5 billion
2019 (ATIA; S. 2302). The bill includes the highway
in general fund spending, but these funds would have to
elements of surface transportation reauthorization under
also be appropriated.
EPW’s jurisdiction. In the Senate, other elements of
reauthorization, such as public transportation, highway
Highway Trust Fund Shortfall
safety agencies, rail, and tax revenues, are under the
Paying for the spending from the HTF proposed by ATIA
jurisdiction of other committees.
might be the main reauthorization issue. Addressing
revenues and offsetting savings is in the jurisdiction of the
The Federal Highway Programs
Senate Finance Committee. The HTF, which is mostly
Nearly all federal highway programs are funded from the
supported by fuel tax revenues, has had insufficient
highway account of the Highway Trust Fund (HTF). ATIA
balances to fund surface transportation authorizations since
would provide an average of $57.5 billion annually from
September 2008. Congress has dealt with the shortfalls by
the HTF during FY2021-FY2025. Of these funds, 90.3%
providing transfers from the Treasury general fund. The
would be distributed via formula, about a 2% lower share
Congressional Budget Office’s May 2019 HTF baseline
than under the FAST Act. The states have nearly complete
projected a highway account shortfall of $53 billion for the
control over the use of formula funds, within the limits of
end of FY2025. ATIA would authorize an additional $37.9
federal planning, eligibility, and oversight rules. The
billion from the highway account of the HTF for FY2021-
highway program focuses on highway construction and
FY2025. Not all of these authorizations would be outlaid by
planning, not operations or routine maintenance. The
the end of FY2025. Assuming the historical outlay rates for
federal share of project costs is generally 80%, but 90% for
highway authorizations, the total highway account shortfall
Interstate System projects. Projects are limited to
under ATIA could approach $79 billion at the end of
designated federal-aid highways, which make up roughly
FY2025, with funding added for the highway safety
25% of the 4 million miles of U.S. public access roads.
agencies. With the public transportation element added to
the bill (funded out of a separate mass transit HTF account),
Funding
the potential HTF shortfall would be even higher. ATIA
The five-year $287 billion in HTF contract authority
includes a sense-of-the-Senate provision that the HTF shall
proposed by ATIA would be a 27% increase over the five-
achieve long-term solvency via user fees, and that any
year funding provided by the FAST Act. ATIA funding also
spending beyond current HTF revenues and balances during
would be a 15% increase over the May 2019 Congressional
the life of the authorization “shall be fully offset.”
Budget Office inflation-adjusted baseline projections. The
FY2021 increase would be the largest, at 17% above
Programmatic Structure and New Programs
FY2020, followed by increases averaging roughly 2.1% per
The federal highway program currently has six core
year for the following four years (Table 1).
formula programs: the National Highway Performance
program, the Surface Transportation Block Grant program,
Table 1. Funding Authorized from the HTF
the Highway Safety Improvement program, the Congestion
Fiscal years: millions of dollars
Mitigation and Air Quality Improvement program, the
National Highway Freight program, and the Metropolitan
2020
2021
2022
2023
2024
2025
Planning program. ATIA would maintain these programs

FAST ATIA ATIA ATIA ATIA ATIA
and fund them at an annual average of roughly $49.9
billion, 87% of HTF funding under ATIA. This annual
Formula
43,450
49,824
50,799
51,820
52,886
53,952
average would be 20% higher than the average annual
Other
3,654
5,303
5,424
5,585
5,784
5,891
FAST Act funding.
Total
47,104
55,127
56,222
57,405
58,669
59,843
ATIA also creates three new formula programs: the
Increase
—
17%
2%
2.1%
2.2%
2%
Formula Safety Incentive program, the Carbon Reduction
Incentive program, and PROTECT grants. These programs
Source: Federal Highway Administration.
would be funded at $1.9 billion annually and would make
up 3.3% of the HTF funding in ATIA. These program funds
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Surface Transportation Reauthorization and the America’s Transportation Infrastructure Act (S. 2302)
would be distributed separately from the core programs.
alternative fueling infrastructure, highway congestion relief,
One result of this treatment is that, unlike the core
and adaptation/resilience. The bill would also add
programs, the new formula program funds may not be
adaptation/resilience eligibilities to existing programs.
transferred or “flexed” to other formula programs.
Tolling and TIFIA
In addition to the three new formula programs, ATIA would
ATIA would expand the Transportation Infrastructure
fund eight new discretionary programs and five new pilot
Finance and Innovation Act (TIFIA) program eligibilities to
programs from HTF. In addition, the bill would authorize
airport projects. The bill would add processing timelines
five new programs that Congress may choose to fund via
and streamlining requirements to the program, as well as
the appropriations process. The HTF-funded discretionary
evaluation and review requirements for projects that
programs are smaller and more narrowly focused than the
involve public-private partnerships. TIFIA previous-year
core formula programs. These programs include the Bridge
carryover balances that are unobligated and unallocated
Investment program, the Congestion Relief program, the
would be made available through a competitive process for
Alternative Refueling Infrastructure Grants program, and
Appalachian Development Highway System projects.
the Carbon Reduction Performance program. New pilot
programs include the Wildlife Crossing Pilot program,
ATIA would establish a pilot program to allow the
Disaster Relief Mobilization Pilot program, and
exchange or sale of toll credits between states. Toll credits
Community Connectivity Pilot program.
can be used to substitute for the state matching share on
federal highway projects. The bill would also require tolling
The expansion of the number of highway programs would
authorities to report on the charges to intercity buses and
be a change from the last two reauthorization acts, which
how they differ from charges to mass transit vehicles.
reduced or limited the number of programs. Increasing the
number of programs and expanding the use of internal
Safety
program set-asides allows for the targeting of needs and
ATIA would establish two new safety grant programs. The
may broaden support for the bill in the absence of earmarks.
Formula Safety Incentive program, funded at $500 million
Others view the growth in the number of programs as
per year from the HTF, would be distributed to the states
making the overall federal highway effort less focused.
based on each state’s core formula program share. Sixtgy-
five percent of these funds would be suballocated by
Bridges
population. The Fatality Reduction Performance program
The Bridge Investment program would have the largest
would be funded at $100 million per year from the HTF.
authorization of the new programs, with HTF funding
Grant awards would be based in part on the success that
averaging $653 million per year and a like amount from the
states have had in moderating or reducing average per
general fund (subject to appropriation). It would be a
capita traffic injury and fatality rates. The bill would also
competitive grant program under the auspices of the
allow states to transfer up to 25% of their Highway Safety
Secretary of Transportation. The funds could be used on
Improvement program funding, which is mostly for safety
any bridge listed on the National Bridge Inventory or on
infrastructure spending, to other safety programs. ATIA
culverts to increase flood control. For large bridges, the
would also create a Wildlife Crossing Safety Pilot program,
Secretary would establish a bridge evaluation process and
funded at $50 million annually from the HTF. High schools
commit to multiyear funding agreements.
would be made eligible for grants under the Safe Routes to
School Program.
Freight
ATIA would provide an annual average of almost $1.7
Planning, Performance and Project Delivery
billion for the National Highway Freight program. The bill
ATIA would amend elements of Metropolitan Planning
would expand the maximum designated mileage for rural
Organization (MPO) boundaries, organizational
and urban critical freight corridors, increase the share of
representation, and coordination requirements. State
funds that can be used on intermodal rail projects, and
planning agencies and metropolitan planning organizations
expand funding eligibility to lock and dam modernization
would be given more leeway in estimating project costs in
and marine highway projects. The Infrastructure For
long-range transportation plans. ATIA would allow
Rebuilding America (INFRA) discretionary program,
aggregate cost ranges to be used beyond the first four years
another existing program, would be funded at an average of
of a plan, rather than beyond the first 10 years. The bill
$1.1 billion annually. The program would be modified to
would encourage states to develop five-year human capital
allow up to 30% of funds for non-highway freight projects,
plans. Performance measure exemptions would be provided
set $500 million minimums for Critical Rural and Critical
for low-population density states.
Urban Interstate projects, increase the funding reserved for
small and rural projects, and create more reporting
ATIA would codify the One Federal Decision process
requirements.
(Executive Order 13807) and establish guidelines for
environmental review, including a requirement that the
Climate Change
Secretary of Transportation provide a report on
ATIA would authorize roughly $10 billion over the life of
environmental best practices. The bill would require the
the bill for highway-related climate change mitigation and
Secretary to exercise all existing flexibilities.
adaptation programs. The bill includes formula programs to
incentivize the reduction of carbon emissions from on-road
Robert S. Kirk, Specialist in Transportation Policy
sources and to support adaptation/resilience projects and
planning. ATIA includes discretionary funding to support
IF11300
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Surface Transportation Reauthorization and the America’s Transportation Infrastructure Act (S. 2302)

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