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40 Conclusions The authority to transfer federal-aid highway funds, both among FAHP categories and to FTA, is widely used by states across the country, although the transfer practices vary signifi- cantly from state to state. The most obvious commonality among states is the tendency to transfer funds from the more restrictive program categories to the more flexible program categories, with STBG being the destination of most funds transferred among FAHP categories. For states that transfer FHWA funds to FTA, CMAQ is the largest source of such fund transfer. Since the transfer of FHWA funds to FTA is not subject to the statutory limit that no more than 50 percent of FAHP apportionment can be transferred, many states transferred well over 50 percent of their CMAQ apportionment to FTA. The statesâ practices in fund transfers are otherwise unique to their specific needs and policy priorities. While states diverged in their fund transfer practices, their transfer decisions were driven by several shared considerations: ⢠Fund transfers provide opportunities for states to pursue their policy priorities in addition to the national priorities inherent in federal programs. ⢠States have more flexibility to program and spend the funds in a timely manner and avoid lapsing and rescission. The ability to transfer funds, coupled with the practice of fund swapping, can also improve administrative efficiency, as it is a common practice for states to program funds to reduce the overall administrative burden. The fund transfer authority is generally regarded by states as an effective programming and fund administration tool. Furthermore, it is a common belief among most states and MPOs that greater flexibility in federal highway funding allows more effective programming and promotes more productive use of federal funds. The IIJA, passed by the Congress and signed into law by President Biden in November 2021, has potential implications for transfer practice due to its scale, structure, and policy direction. Future analyses of changes to transfer practice as a result of implementation of the IIJA would be beneficial to recipients and the transportation industry at large. C H A P T E R 6
