September 4, 2024

By Lane Kimble

Wisconsin is about to receive more than $200 million in federal Highway Trust Fund money, but it can’t go to traditional road and bridge projects and needs to be spent quickly.

The state’s portion of the massive $8.7 billion August Redistribution also underscores a growing problem for states across the country.

The money comes from buckets such as discretionary grant programs that could not obligate their full federal allotments in FY2024.

To avoid that money lapsing, the feds offer it up to the states before the fiscal year ends September 30.

However, states cannot freely spend the money as they see fit –  they must use it on programs that have remaining contract authority.  In Wisconsin, that’s the Carbon Reduction Program, Transportation Alternatives Program, and a handful of others.

Fifteen years ago, the feds redistributed about $1 billion total, compared to $8.697 billion this year.  Much of that growth is due to huge increases in transportation money from the Infrastructure Investment and Jobs Act (IIJA).

Wisconsin must obligate its $210 million to shovel-ready projects before the end of this month.

The American Association of State Highway and Transportation Officials (led by AASHTO President and WisDOT Secretary Craig Thompson) sent Congress a letter in February asking them to craft a legislative fix to the issue, including an earlier (June 1) redistribution date.