U.S. Department of Transportation issues implementation guidance for $9.8 billion in highway funds provided by FY 2021 appropriations, COVID relief bill

Key Takeaways

On February 24, the U.S. Department of Transportation issued implementation guidance on the $9.8 billion in supplemental Highway Infrastructure Program (HIP) funds apportioned to state departments of transportation by the Coronavirus, Response and Relief Supplemental Appropriations Act (CRRSAA), 2021 (P.L. 116-260). Enacted on December 27, 2020, the legislation directed these additional funds through the Federal Highway Administration to address the significant impacts of COVID-19 on the nation’s transportation systems, including historic drops in transportation-related funding and revenue at the county level. The memorandum provides information to state transportation agencies on eligible uses of the funds, which were apportioned on January 15 and will remain available for obligation through September 30, 2024. Included in the guidance is information around the requirement for states to suballocate funds to counties and metropolitan planning organizations of 200,000 and above.  

Established under the 2010 Consolidated Appropriations Act (P.L. 111-117), HIP provides federal funds to construct and maintain highways, bridges, tunnels and other critical transportation infrastructure. The additional $9.8 billion for HIP may be used to carry out operation and maintenance activities, make debt service payments and replace lost transportation revenue as a result of COVID-19.  

Counties play a critical role in the nation’s transportation and infrastructure system, owning 45 percent of all public roads and nearly 40 percent of the National Bridge Inventory, and frequently partner with state departments of transportation to deliver critical projects for our residents. Each year, counties invest roughly $134 billion in infrastructure and maintaining and operating public works. NACo has been on the forefront of advocating for COVID-19 relief for county transportation systems and beyond. On March 11, President Joe Biden signed into law the American Rescue Plan, which included roughly $40 billion in funding for transportation sectors owned, operated or directly supported by counties. Most importantly, the historic legislation provides $65.1 billion in direct, flexible aid to every county in America while also making other crucial investments in local communities.