USA Banner

Official US Government Icon

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Secure Site Icon

Secure .gov websites use HTTPS
A lock ( ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

N 4510.871

Notice
Subject
SEQUESTRATION OF HIGHWAY FUNDS FOR FISCAL YEAR (FY) 2023
Classification Code Date Office of Primary Interest
N 4510.871 October 3, 2022 HCFB-10

  1. What is the purpose of this Notice? This Notice is to notify the States of the portion of National Highway Performance Program (NHPP) and emergency relief funds impacted by the sequestration order issued on March 28, 2022.

  2. What is the basis of the sequestration of these funds?

    1. The sequestration of funds is required pursuant to sections 251A and 256(k) of the Balanced Budget and Emergency Deficit Control Act (BBEDCA), as amended, and sections 901a and 906(k)(6) of Title 2, United States Code (U.S.C.). The order, which the President issued in accordance with the BBEDCA, requires that budgetary resources in each non-exempt budget account be reduced by the amount calculated by the Office of Management and Budget (OMB) in its report to Congress on March 28, 2022, entitled OMB Report to the Congress on the BBEDCA 251A Sequestration for Fiscal Year 2023 (sequestration report).

    2. The NHPP funds are authorized for Fiscal Year (FY) 2023 pursuant to the Infrastructure Investment and Jobs Act. Pursuant to the sequestration report, those NHPP funds that are exempt from the obligation limitation are subject to the sequestration at a rate of 5.7 percent. Therefore, the $639,000,000 in NHPP funds exempt from obligation limitation available for FY 2023 is reduced by a total of $36,423,000, resulting in a post-sequestration amount of $602,577,000.

  3. How is the amount of NHPP funds sequestered for each State determined? The total sequester amount of $36,423,000 is distributed among the States in the same proportions as the funds subject to sequester were apportioned to the States for FY 2023. Each State's portion of the total amount to be sequestered is shown in the attached table.

  4. What other highway funds are subject to the sequestration? Pursuant to the sequestration report, the $100,000,000 in emergency relief funds authorized from the Highway Trust Fund in 23 U.S.C. 125 is subject to the sequestration at a rate of 5.7 percent ($5,700,000 sequester amount).

  5. What actions are required? Division Administrators should ensure that this Notice is provided to the State departments of transportation.

 
Stephanie Pollack Signature

Stephanie Pollack
Acting Administrator