Highway Emergency Relief: Federal Highway Administration Should Enhance Accountability over Project Decisions

In 2017, hurricanes in Texas, Florida, and Puerto Rico caused $1 billion in estimated damage. The Department of Transportation's Federal Highways Administration's (FHWA) Emergency Relief Program provides funding for states to repair or reconstruct federal-aid highways damaged or destroyed by natural disasters, including funding for emergency and permanent repairs. As of September 2019, FHWA had allocated $634 million in federal funds to the two states and Puerto Rico. To ensure the appropriate use of federal funds, FHWA officials in division offices apply Emergency Relief Program guidance for determining the eligibility of projects and the amount of federal funds each project should receive. This guidance, federal statute, and regulation distinguish between "emergency" and "permanent" repairs. FHWA also conducts oversight to determine eligibility and ensure that federal requirements are met. GAO analyzed a non-generalizable sample of 39 emergency relief projects-25 of which included emergency repairs-to determine whether files included the required documentation. In 2019, GAO reported that FHWA did not document decisions to classify emergency relief projects as emergency repairs as opposed to permanent repairs. Specifically, 22 out of 25 emergency repair projects GAO reviewed-which account for approximately $50 million in emergency relief funds-did not include a documented justification for classifying repairs as an emergency repair instead of a permanent repair. Without documentation it is not possible to definitively determine the justification for why projects were classified as emergency repairs and GAO identified at least three projects-located in Texas and Puerto Rico-that may have been inappropriately classified because they may not have been necessary to restore essential traffic, or were not undertaken during or immediately after the disaster. According to Federal Internal Control Standards, management should clearly document all transactions and significant events, and define objectives clearly, including specific terms so that they can easily be understood. FHWA did not clearly document transactions and significant events because, in the case of classifying projects as emergency repairs, there is no requirement to do so. By not documenting emergency repair decisions, such as whether alternative strategies or repairs were considered and the rationale for classifying projects as emergency repairs after the emergency has passed, FHWA lacks definitive explanations for its decisions. Thus, GAO recommended that the Administrator of FHWA require FHWA division offices to document the rationale for classifying projects as emergency repairs, such as a description of why an emergency repair is necessary and which alternative strategies or repairs were considered, and to more clearly define the circumstances under which projects are classified as emergency repairs, including what constitutes restoration of essential traffic. On April 14, 2021 and March 7, 2022, FHWA issued memorandums requiring division offices to document the rationale for classifying projects as emergency repairs, including a description of why the repair is necessary, what repairs constitute the restoration of essential traffic, which alternative strategies or repairs were considered, and any alternate routes that were analyzed. FHWA emailed the memorandums to division office officials and emergency relief program coordinators, posted links to the memorandums on the DOT website, and held a webinar with FHWA staff to discuss their contents and address any questions. By taking these steps, FHWA is better positioned to ensure that division offices will appropriately document emergency repair decisions and provide greater oversight of federal funds.

In 2017, hurricanes in Texas, Florida, and Puerto Rico caused $1 billion in estimated damage. The Department of Transportation's Federal Highways Administration's (FHWA) Emergency Relief Program provides funding for states to repair or reconstruct federal-aid highways damaged or destroyed by natural disasters, including funding for emergency and permanent repairs. As of September 2019, FHWA had allocated $634 million in federal funds to the two states and Puerto Rico. By statute, emergency repairs are undertaken during or immediately following a disaster to quickly restore essential traffic and minimize further damage. These repairs receive 100 percent federal reimbursement if accomplished within 180 days and may proceed under expedited contracting and environmental procedures. To ensure the appropriate use of federal funds, FHWA conducts oversight to determine eligibility and ensure that federal requirements are met. GAO analyzed a non-generalizable sample of 39 emergency relief projects-25 of which included emergency repairs-to determine whether files included the required documentation. In 2019, GAO reported that out of approximately 1,200 eligible projects in Puerto Rico, FHWA officials reported undertaking 34 projects, more than 180 days after the hurricanes. The officials stated that the division offices did not document the basis for continuing to classify these projects as emergency repairs. FHWA officials in Puerto Rico stated they were not required to complete repairs within the 180 day limit established in law because Congress exempted Puerto Rico from federal matching share requirements. Further, emergency repair projects are allowed to expedite contracting and environmental procedures. Although these projects went forward, FHWA's policy regarding time limits on the use of expedited contracting and environmental procedures is not clear. After GAO raised this issue with FHWA, the agency stated that emergency repair projects are only permitted to use these expedited procedures within the first 180 days of a disaster. Officials acknowledged this policy is not well documented and stated they planned to address this gap in future updates to program guidance, but did not have a specific timeline for doing so. Thus, GAO recommended that FHWA identify a specific timeline for clarifying the policy on the acceptable time frames for accomplishing emergency repair projects undertaken under expedited contracting and environmental requirements, and require FHWA division offices to document the rationale for decisions to extend projects beyond these time frames. In March 2023, GAO confirmed that FHWA issued memorandums clarifying the policy on time frames for extending projects beyond 180 days, including clarifying that such extensions allow for unique contracting flexibility and more limited FHWA oversight, and requiring division offices to document the rationale for those decisions. FHWA emailed the memorandums to division office officials and emergency relief program coordinators, posted links to the memorandums on the DOT website, and held a webinar with FHWA staff to discuss their contents and address any questions. By taking these steps, FHWA is better positioned to ensure that division offices will appropriately document the rationale for decisions to extend emergency repairs and provide greater oversight of federal funds.