Sequestration Impacts on Transportation Funding Limited

The Highway Trust Fund (HTF) and Airport Improvement Program are not included in the sequestration process that was implemented by President Obama on March 1, 2013. While the Highway Trust Fund is not included in sequestration, general fund transfers into the trust fund resulting from the recently enacted MAP-21 would be cut by $471 million, hastening the date when the trust fund will once again be unable to support annual funding levels. HTF revenue is sufficient to fund the program in FY 2013. Transit program new start capital grants, which are support from general fund revenue will be cut by $156 million. In addition, FHWA emergency relief funds would be cut $136 million (8.2%) and TIGER grants would be reduced by $41 million. These construction accounts, including HTF accounts, could face cuts in later fiscal years to help ensure that federal spending does not exceed the Budget Control Act-enacted budget caps.