What is the purpose of this Notice? This Notice transmits the certificate of apportionment for apportioned Federal-aid highway program funds authorized for Fiscal Year (FY) 2026 pursuant to the Infrastructure Investment and Jobs Act (IIJA), Public Law (Pub. L.) 117-58. The apportionments made available by this Notice are for the following programs: National Highway Performance Program (NHPP), Surface Transportation Block Grant (STBG) Program, Highway Safety Improvement Program (HSIP), Railway-Highway Crossings Program (RHCP), Congestion Mitigation and Air Quality (CMAQ) Improvement Program, National Highway Freight Program (NHFP), Metropolitan Planning Program (MPP), Carbon Reduction Program (CRP), and Promoting Resilient Operations for Transformative, Efficient, and Cost-Saving Transportation (PROTECT) Formula Program.

What is the availability of these funds?

1. The funds resulting from this apportionment are available for obligation until September 30, 2029. Any amounts not obligated by the State on or before September 30, 2029, shall lapse.

2. The funds resulting from this apportionment are available for obligation immediately and shall be subject to obligation controls in force at the time of obligation.

3. For FY 2026, an amount of NHPP funds equal to $639,000,000 prior to sequestration ($602,577,000 after sequestration) that is exempt from obligation controls is provided. See the Federal Highway Administration Notice N4510.906 for additional information on sequestration.

4. The Federal share payable shall be in accordance with Section 120 of Title 23, United States Code (U.S.C.), except as specifically provided by another provision of law.

5. The program codes to be used when obligating these funds were provided in a separate memorandum issued on January 3, 2022.

6. The Assistance Listing Numbers (ALN) (formerly Catalog of Federal Domestic Assistance) for these funds have been revised and can be located at https://sam.gov/assistance-listings.

What amounts are authorized and available for apportionment?

1. Section 11101(a)(1)(E) of the IIJA authorizes a total of $56,814,769,844 for the Federal-aid apportioned programs for FY 2026. This total amount is referred to as the base apportionment.

How are the State-by-State amounts determined?

1. Pursuant to Section 104(c)(1)(A) of Title 23, U.S.C., the initial amount of the FY 2026 base apportionment for a State is calculated by multiplying the total amount available by the ratio of that State’s FY 2021 combined amount of apportionments to the total FY 2021 combined amount of apportionments for all States.

2. Pursuant to Section 104(c)(1)(B) of Title 23, U.S.C., the initial amounts are then adjusted to ensure that each State’s aggregate amount of apportionments of the base apportionment is:

   1. (1) not less than 95 percent of the estimated tax payments attributable to highway users in that State paid into the Highway Trust Fund (other than the Mass Transit Account) in the most recent fiscal year for which data is available and associated with taxes in effect on July 1, 2019 (and only up to the rate those taxes were in effect on that date);

   2. (2) at least 2 percent greater than the apportionment that the State received for FY 2021; and

   3. (3) at least 1 percent greater than the apportionment that the State received for the previous fiscal year.

How are the program-by-program amounts determined?

1. From each State’s total base apportionment determined under Section 104(c)(1) of Title 23, U.S.C., an amount is set aside for the CMAQ Program. Pursuant to Section 104(b)(4) of Title 23, U.S.C., the set-aside amount for each State is calculated by multiplying the total FY 2026 set-aside amount of $2,745,579,213 for all States by the ratio of that State’s FY 2020 apportionment for the CMAQ Program to the total FY 2020 CMAQ Program apportionments for all States.

2. From each State’s total base apportionment determined under Section 104(c)(1) of Title 23, U.S.C., an amount is set aside for the NHFP. Pursuant to Section 104(b)(5) of Title 23, U.S.C., the set-aside amount for each State is calculated by multiplying the total FY 2026 set-aside amount of $1,487,188,740 for all States by the ratio of that State’s total base apportionment to the total base apportionments for all States.

3. From each State’s total base apportionment determined under Section 104(c)(1) of Title 23, U.S.C., an amount is set aside for the MPP. Pursuant to Section 104(b)(6) of Title 23, U.S.C., the set-aside amount for each State is calculated by multiplying the total FY 2026 set-aside amount of $474,236,409 for all States by the ratio of that State’s FY 2020 apportionment for the MPP to the total FY 2020 MPP apportionments for all States.

4. After distributing the amounts for the CMAQ Program, the NHFP, and the MPP, pursuant to paragraphs (1) through (3) and paragraphs (7) and (8) of Section 104(b) of Title 23, U.S.C., the remainder of the base apportionment to a State is distributed in the following proportions: 59.0771195921461 percent for the NHPP, 28.7402203421251 percent for the STBG Program, 6.70605141316253 percent for the HSIP, 2.56266964565637 percent for the CRP, and 2.91393900690991 percent for the PROTECT Formula Program.

5. Section 130(e)(1) of Title 23, U.S.C., instructs that not less than a total of $245,000,000 for FY 2026 shall be set aside from the HSIP prior to the apportionment of that program for the RHCP. The RHCP amount for each State is determined by distributing the $245,000,000 total amount according to the formula in Section 130(f) of Title 23, U.S.C. The resulting RHCP amount for a State is then set aside from that State’s initial HSIP amount.

6. Pursuant to Section 1519(a) of the Moving Ahead for Progress in the 21st Century Act (MAP-21), as amended by the IIJA, a total of $3,500,000 for FY 2026 is set aside from the HSIP prior to the apportionment of that program to carry out safety-related activities and operate authorized safety-related clearinghouses under such section. The set-aside is made on a proportional basis from each State’s initial HSIP amount.

7. A State’s official HSIP apportionment is the initial HSIP amount net of the RHCP set-aside amount and the set-aside amount under Section 1519(a) of MAP-21. In addition, the $3,500,000 amount set aside under Section 1519(a) of MAP-21 is classified as allocated funding for safety-related activities and clearinghouses and, therefore, does not appear in the table of State-by-State apportionments.

8. Table 1 shows the State-by-State, program-by-program FY 2026 apportionment amounts (before post-apportionment set-asides, before penalties, and before sequestration) available under the IIJA.

Are certain States subject to transfer or withholding penalties? Yes. Currently, the States that are listed under the following requirements are subject to transfer or withholding penalties.

1. Open Container Requirements – 23 U.S.C. 154 – 2.5 percent

   Funds subject to transfer penalty: NHPP and STBG Program.

   Alaska, Connecticut, Delaware, Hawaii, Louisiana, Maine, Mississippi, Missouri, Ohio, Tennessee, Virginia, and Wyoming

   The funds subject to transfer for a State in noncompliance with Section 154 of Title 23, U.S.C., are reserved and then, in the proportions elected by the State, released for use on eligible HSIP activities under Section 148 of Title 23, U.S.C., or transferred to the State’s Highway Safety Program (HSP) under Section 402 of Title 23, U.S.C.

   Table 2 shows the transfer penalty amounts under Section 154 of Title 23, U.S.C., subject to Section 154(c)(5), which authorizes a State to designate how the total transfer penalty amount is to be derived from the NHPP and the STBG Program.

2. Minimum Penalties for Repeat Offenders for Driving While Intoxicated or Driving Under the Influence – 23 U.S.C. 164 – 2.5 percent

   Funds subject to transfer penalty: NHPP and STBG Program.

   Alaska, California, Colorado, Hawaii, Indiana, Louisiana, Michigan, Minnesota, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, South Dakota, Vermont, Washington, and Wyoming

   The funds subject to transfer for a State in noncompliance with Section 164 of Title 23, U.S.C., are reserved and then, in the proportions elected by the State, released for use on eligible HSIP activities under Section 148 of Title 23, U.S.C., or transferred to the State’s HSP under Section 402 of Title 23, U.S.C.

   Table 3 shows the transfer penalty amounts under Section 164 of Title 23, U.S.C., subject to Section 164(b)(5), which authorizes a State to designate how the total transfer penalty amount is to be derived from the NHPP and the STBG Program.

What other amounts are related to these apportionments? Supplementary tables showing other amounts related to these apportionments will be issued at a later date via a separate notice. The amounts shown in the supplementary tables will include set-asides (e.g., State Planning & Research, Transportation Alternatives, etc.), suballocations for the STBG Program, CRP, and the Transportation Alternatives set-aside, and various limiting amounts.

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