States Receive IIJA FY 2022 Contract Authority; Appropriations Still Pending

The Federal Highway Administration (FHWA) Dec. 15 issued over $52 billion in federal highway formula funding to states for the fiscal year ending Sept. 30, 2022. This is the first year of Highway Trust Fund (HTF)-supported formula funding approved as part of the Infrastructure Investment and Jobs Act (IIJA). This allocation- known formally as Contract Authority – will give state and local departments of transportation the resources necessary to plan for the rest of FY 2022.

To spend these resources, however, Congress first needs to finish the FY 2022 appropriations measures. The federal government is currently operating via a continuing resolution through Feb. 18, 2022, with all programs locked in at FY 2021 funding levels. Until Congress enacts a full-year appropriations package at the spending levels authorized in the IIJA, the more than 20 percent increase in funding from FY 2021 to FY 2022 for HTF-supported highway formula programs is inaccessible.

States and other federal jurisdictions are also waiting on an additional $6.5 billion in FY 2022 funding to support two new formula programs created in IIJA, one dedicated for bridge improvements, the other for electric vehicle (EV) charging network build out. Unlike the HTF-supported programs, the appropriations for these two programs were included in the IIJA law and therefore will be ready to spend once FHWA releases the funds.

ARTBA and its partner organizations are working to ensure the next appropriations measure includes spending for surface transportation programs at IIJA-authorized levels.