Sneak Preview: FHWA Updates Highway Freight Program Guidance
(The following was excerpted from a Thompson Grants Compliance Expert article.) The Department of Transportation Federal Highway Administration (FHWA) recently revised its implementation guidance for the National Highway Freight Program (NHFP), updating the program’s strategic priorities, eligibility requirements and use of funds in response to Infrastructure Investment and Jobs Act (IIJA) (Pub. L. 117-58) provisions.
The NHFP is focused on improving the condition and performance of the National Highway Freight Network (NHFN) and “ensuring the network provides the foundation for the U.S. to compete in the global economy.” The NHFN is a set of roadways designated for supporting the movement of goods and consists of four components: the primary highway freight system; critical rural freight corridors; critical urban freight corridors; and the remaining portions of the U.S. interstate system. NHFP-eligible projects must: (1) contribute to the efficient movement of freight on the NHFN; and (2) be identified along with matching funds in a fiscally constrained freight investment plan included in a state freight plan.
Section 11114 of the IIJA amended NHFP program statutes at 23 U.S.C. §167 and took effect on Oct. 1, 2021, applying to all NHFP funds allocated after that date. The new guidance replaces FHWA’s February 2016 NHFP Implementation Guidance.
Going forward, IIJA sets each state’s initial share of federal-aid highway program apportioned formula funds annually based on the share of formula funds each state received in federal fiscal year (FY) 2021. The estimated annual NHFP funding under IIJA is $1.401 billion for FY 2023; $1.429 billion for FY 2024; $1.458 billion for FY 2025; and $1.487 billion for FY 2026. Recipients may obligate NHFP funds for a three-year period after the last day of the fiscal year for which the funds are authorized.
The federal share under NHFP is generally 80%, although the federal share for projects on the interstate system is 90% unless the project adds lanes that are not high-occupancy-vehicle or auxiliary lanes. For projects that add single-occupancy-vehicle capacity, that portion of the project will be 80% federal share. IIJA makes certain types of improvements, predominantly safety improvements, available at 100% federal share. FHWA’s guidance encourages states to consider the use of NHFP funds for such safety improvements that would increase the federal share to 100%.
(The full version of this story has now been made available to all for a limited time here.)
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