Furloughs Likely If FAST Act and Transportation Appropriations Not Extended by September 30

Furloughs Likely If FAST Act and Transportation Appropriations Not Extended by September 30

INSIGHTi
Furloughs Likely If FAST Act and
Transportation Appropriations
Not Extended by September 30
September 21, 2020
On September 30, 2020, federal surface transportation programs face the expiration of both the
authorizations provided in the Fixing America’s Surface Transportation Act (FAST Act; P.L. 114-94) and
appropriations provided in the Further Consolidated Appropriations Act, 2020 (P.L. 116-94). A continuing
resolution is currently under consideration in Congress to extend the FY2020 Appropriations Act. The
continuing resolution may be the legislative vehicle for extension of the FAST Act authorizations. Not
extending the FAST Act would have a larger impact in terms of surface transportation program shutdowns
and furloughs than an appropriations lapse. The largest impact on surface transportation programs would
result from a lapse in both authorization and appropriations simultaneously.
How the two expirations would affect transportation programs depends on whether a program or activity
is funded through the Highway Trust Fund (HTF) or with appropriated budget authority from the
Treasury’s general fund. The Anti-Deficiency Act (ADA; 31 U.S.C. §1341) prohibits agencies from
incurring obligations that are in advance of appropriations except in certain circumstances. This means
that transportation programs and activities funded by general funds must be appropriated. In contrast,
HTF funding is a form of budget authority that by law may be obligated prior to an appropriation, and is
effectively an exception under the ADA. HTF funds must be authorized, however, and that authorization
expires September 30, along with authorizations for various programs funded through the HTF.
If the FAST Act is not extended or replaced, al HTF-funded personnel not needed to fulfil excepted
activities under the ADA (such as life, safety, and the protection of property), or funded with
appropriations, would be furloughed. Approximately 3,500 to 4,000 employees in the five Department of
Transportation surface transportation agencies discussed below would be affected. Under a lapse of
annual appropriations, al appropriations-funded non-excepted programs and activities in the Department
of Transportation would shut down. Roughly 900 to 1,000 non-excepted surface transportation program
employees would be furloughed.
If both a FAST Act extension and a continuing resolution are not enacted by September 30, 2020, al
surface transportation programs would shut down and al non-excepted employees would be furloughed.
The total number of employees furloughed would be in the range of 4,400 to 5,000.
Congressional Research Service
https://crsreports.congress.gov
IN11509
CRS INSIGHT
Prepared for Members and
Committees of Congress

Congressional Research Service
2
Federal Highway Administration (FHWA)
If the FAST Act expires, approximately 2,600 of FHWA’s employees would be furloughed. Based on past
experience, about 60 of its HTF-funded staff and roughly 70 non-HTF-funded staff would continue to
work. Al Federal-Aid Highway programs would shut down. Payments from the HTF to states and other
grant recipients would cease. There would be no authority to obligate new funds or reimburse grantees for
previously obligated projects. Some states might continue their existing federal-aid highway projects for a
few weeks with the hope of future reimbursement, but without current repayments they might experience
cash flow problems. Projects directly overseen by the FHWA (mostly projects on federal lands) would
halt.
If the FAST Act is extended but annual appropriations lapse, FHWA’s programs and activities would
continue, there would be no furloughs, and the obligation of and payments from the highway account of
the HTF would continue. If the FAST Act expires and annual appropriations lapse, the impact would be
similar to the expiration of the FAST Act except that at least some of the 70 non-HTF-funded FHWA
employees would be subject to furlough.
Federal Transit Administration (FTA)
Under a FAST Act expiration, FTA would continue to operate and would not furlough any of its roughly
560 employees, because the agency’s administrative costs are paid through appropriations. However, FTA
would not be able to reimburse transit agencies for new costs under its formula programs, which are HTF-
funded. Payments for construction projects supported by the general-funded Capital Investment Grants
(CIG) Program could continue.
In the case of a lapse of annual appropriations (assuming a FAST Act extension is enacted), most of
FTA’s programs and activities would cease and al but about 75 of the agency’s roughly 560 employees
would be furloughed. HTF funding for the formula programs would exist, but there would be no one to
administer new grants. The CIG Program (funded from appropriations) would cease making new grants.
Overal , no new grants, cooperative agreements, contracts, or documents obligating funds would be
executed.
If both the FAST Act expires and the annual appropriations lapse, the impacts on FTA would be similar to
a lapse in appropriations. The number of employees excepted from furlough would be roughly the same
(75 of roughly 560 employees), but the employees who remain at work would have no new HTF or
general fund money to administer.
Other DOT Surface Transportation Administrations
The operations of the Federal Motor Carrier Safety Administration (FMCSA) and the National Highway
Traffic Safety Administration (NHTSA) would continue under an appropriations lapse but would be shut
down under a FAST Act expiration. Under an appropriations lapse none of FMCSA’s roughly 1,100
employees or NHTSA’s roughly 600 employees would be furloughed because they are funded with HTF
funds. Under a FAST Act expiration, however, al non-excepted employees would be furloughed,
although NHTSA might use appropriated funds to pay some employees. FMCSA and NHTSA have not
released estimates of the number of excepted employees under HTF shutdown conditions.
The Federal Railroad Administration (FRA) is entirely funded with appropriations. Consequently, a FAST
Act expiration would have little effect as long as appropriated funds are available to FRA. According to
DOT, not enacting a continuing resolution could lead to the furlough of 422 of FRA’s 927 employees.

Congressional Research Service
3
The National Railroad Passenger Corporation (Amtrak) is a wholly U.S. owned corporation and is not a
federal agency. Although it is reliant on appropriated federal subsidies, it has other revenue sources, and
its operations would not be immediately affected by an appropriations lapse.

Author Information

Robert S. Kirk

Specialist in Transportation Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United
States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However,
as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the
permission of the copyright holder if you wish to copy or otherwise use copyrighted material.

IN11509 · VERSION 1 · NEW