New FHWA Policy Discourages Using Highway Funds to Increase Road Capacity

What happened: The Federal Highway Administration (FHWA) Dec. 16 issued a policy memorandum favoring repair and rehabilitation rather than increasing road capacity in projects funded by the Infrastructure Investment and Jobs Act (IIJA). It ‘prioritizes projects that move more people and freight by modernizing and increasing the operational efficiency of existing roads and highways over projects that expand the general purpose capacity of roads and highways.’ The policy also indicates projects that do add capacity ‘necessarily require more scrutiny’ under the National Environmental Policy Act (NEPA).

Why it matters: The announcement raises questions about how FHWA will oversee the 87 percent of IIJA highway funds for which states make project selection decisions. In FY 2020, states used 19 percent of their federal highway funds for projects that added capacity to an existing right of way, according to ARTBA’s analysis of FHWA data. An additional 6 percent of federal funds were used for new highway and bridge structures. ARTBA is committed to a federal/state partnership that maintains the right of both entities to advance projects that meet their unique needs, including capacity and maintenance improvements.

What’s next: ARTBA will continue to work with FHWA and Congress to ensure the highway project selection and approval process is merit-based and activity-neutral.