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Understanding Federal Earmarks: Insights on High Priority Projects

This document by Joseph Taylor, a Highway Engineer from FHWA, delves into the intricacies of federal earmarking for highway projects under the SAFETEA-LU framework. It outlines the trends in project earmarking across various authorizations from ISTEA to SAFETEA-LU, detailing the financial scope, definitions of earmarks, and the historical context. The report provides critical insights into funding allocations, project eligibility, and the implications of earmarks in the evolving political landscape of federal appropriations. A must-read for stakeholders in transportation and infrastructure.

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Understanding Federal Earmarks: Insights on High Priority Projects

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  1. Federal Perspective on Earmarks (High Priority Projects) Joseph Taylor, FHWA Highway Engineer for the Office of Program Administration, Federal-aid Programs Groups August 22, 2006

  2. Trends in Authorizors’ Project Earmarking ISTEA (FY 1992 – FY 1997) TEA-21 (FY 1998 – FY 2003) SAFETEA-LU (FY 2005 – FY 2009) 539 projects 1,850 projects 5,634 projects $6.23 billion $9.36 billion $21.6 billion

  3. What is an Earmark? • Federal Appropriations Law - “a specific statutory designation of a portion of a lump-sum appropriation or authorization.” • In general - funding designated for a specific purpose and/or specific recipient • Sources -- • Authorizing legislation (e.g., SAFETEA-LU) • Appropriations Acts

  4. History of Earmarks • “Historic” function of earmarks • Additional $ “Above the line” • Constituent service • “Grease” the legislative wheels • Political climate – gone too far? • Public perception of the Federal programs • FHWA oversight responsibility continues

  5. SAFETEA-LU Sources • 7 SAFETEA-LU programs contain a total of 5,634 designated projects funded at $21.6 billion • Not limited to the “flavors of HPP’s” • e.g. Research funds are considered 100% earmarked with $178 M designated for specific recipients and remaining designated for specific purposes.

  6. # of Projects Funding (2005-2009) High Priority Projects (sec. 1701) 5,091 $14.824 billion Projects of National and Regional Significance (sec. 1301) 25 $1.779 billion National Corridor Infrastructure Improvement Program (Sec. 1302) 33 $1.948 billion Transportation Improvements (sec. 1934) 466 $2.555 billion Bridge Set-asides (sec. 1114(g)) 9 $ 400 million Freight Intermodal Distribution Pilot Grant Program (sec. 1306) 6 $ 30 million Nonmotorized Transportation Pilot Program (sec. 1807) 4 $ 100 million 5,634 $21.636 billion SAFETEA-LU Project Earmarks

  7. SAFETEA-LU earmarks – How much of the national program? Total SAFETEA-LU funding for highways (2005-2009) $ 193.578 B Bridge setasides, Freight & Nonmotorized Pilots ($0.53 B) Transportation Improvements ($2.555 B) National Corridor Infrastructure ($1.948 B) Projects of Nat’l & Reg. Significance ($1.779 B) High Priority Projects ($14.824 B) Formula and other funds ($171.942 B)

  8. Sources of earmarks – appropriations acts In addition to full earmarking of most highway discretionary programs: • FY 2005 DOT Appropriations: • $1,211,360,000 for 795 surface transportation projects named in report language • FY 2006 DOT Appropriations: • Surface Transportation Projects -- 519 earmarks totaling $600,000,000 • Highway Priority Projects - 24 earmarks totaling $25,000,000

  9. SAFETEA-LU Implementation • Massive job –there are about 250 implementation items for which FHWA is the lead agency • Releasing project money • Preparing implementing guidance, interim guidance • Post - links for SAFETEA-LU website cross reference, FAQs posted on program office websites

  10. Eligibility Determinations • Expectations of Members and Sponsors • Full face value? • Where’s my check? • Tension between Title 23, flexibility, and specific direction in law • Very limited Executive Branch authority to revise • Learning curve: shift from Execution Discretion to Conference Reports to Statutory Language • Consistency and clear expectations • Technical Corrections?

  11. Things To Know (HPP) • Funding • Federal share is 80% • Obligation limitation (FY 05 = 85.5% & FY 06 = 87.0%) • Donations and Credits • Toll Credits • Federal Lands Management Agency Funds • Federal Lands Highway Program Funds • Availability • Transferable

  12. Other Provisions • Flexibility Provisions • Advance Construction • Project Flexibility – Section 1935 • Advances Provision – Section 1936

  13. For information on SAFETEA-LU and implementation . . . Continue to Visit the FHWA website: General Informationhttp://www.fhwa.dot.gov/safetealu HPP Implementing Guidance http://www.fhwa.dot.gov/programadmin/122305.cfm

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