Short answer: $26.6 billion, of which about $9 billion must be obligated to projects by June 30, 2009.
Bucket 1 — $798 million for Transportation Enhancements* Bucket 2 — $17.86 billion for use in any highway/bridge area Bucket 3 — $7.98 billion sub-allocated based on population densities**
*Transportation Enhancements (TE) are community based surface-transportation projects intended to improve, maintain, and restore the aesthetics and travel routes within communities. Learn more here: Enhancements.org
**Sub-allocated funds are distributed to states based on three population thresholds: urbanized areas with populations greater than 200,000; areas with populations equal to or less than 200,000; and areas with populations less than 5,000. These funds are not required to meet the 120-day redistribution (see next question for more on this).
There are two deadlines for DOTs to obligate funds to projects:
June 30, 2009: 50 percent of the funds must be obligated March 2, 2010: All funds (from all three Buckets) must be obligated …Of the funds provided for highways and bridges, 30 percent (sub-allocated funds) are excluded from the 120-redistribution and not required to meet the June 30, 2009 deadline. If a state fails to meet the 120-day redistribution deadline on June 30, 2009, the difference will be withdrawn and redistributed to states that succeeded in meeting the deadline. Same goes for the March 2, 2010 deadline. Less
Of the funds provided for highways and bridges, 30 percent (sub-allocated funds) are excluded from the 120-redistribution and not required to meet the June 30, 2009 deadline.
If a state fails to meet the 120-day redistribution deadline on June 30, 2009, the difference will be withdrawn and redistributed to states that succeeded in meeting the deadline. Same goes for the March 2, 2010 deadline.
The preferences differ from state to state.
“While Kansas is using it on a few big marquee projects to expand capacity at several highways, Maryland has adopted a fix-it-first policy, and plans to use its money to repair dozens of roads and bridges instead of building new ones,” reported Michael Cooper in the New York Times.
As it relates to the review process, the Indiana Department of Transportation (INDOT) may be a good example of how DOTs nationwide are approaching the funding process. “We need roughly 10 weeks to review projects. A couple of those weeks are for advertising and bid gathering, so it’s closer to eight weeks of review,” said Bruce Childs, deputy commissioner of communications with INDOT, which emphasizes speed, coverage in multiple counties, and diversity or project types in what it reviews.
“We review projects on a first-come first-served basis — if they get kicked out of line for corrections, they come back at the end of the line,” Childs said. It’s kind of a Catch-22: You need a good project, but if you wait until the last minute, the money might be obligated already.
Local projects are eligible for federal funds, but states will need to reach out to local agencies in order to ensure that projects are considered and included in the process.