Determination of Contract Authority With Respect to Funds Derived From Highway Trust Fund

The Deputy Administrator of the Federal Highway Administration (FHwA) asked whether section 148, title 23, United States Code provides contract authority with respect to those funds derived from the Highway Trust Fund. Nothing in the language of legislative history of 23 U.S.C. 148 would support a finding of congressional intent to distinguish the Great River Road Project from other projects in the Federal-Aid Highway Program by excluding the Great River Road project from the funding mechanism of the Federal-Aid Highway Program. Section 148 authorized the location and construction and reconstruction of the Great River Road by the 10 states bordering the Mississippi River. More specifically, the states submitted programs for construction after the apportionment of authorizations. Once it has been an approved program, the states may submit individual projects. Approval by FHwA of a project is a contractual obligation of the federal government. FHwA may then make payments to the states for the federal share of construction costs of approved projects. With regard to the funding section 148, when read together with sections 106 and 118 of that title, it provides contract authority with respect to those funds derived from the Highway Trust Fund. GAO concurred that the Trust Fund portion results in contract authority and the General Fund portion requires annual appropriation before funds are available.