Our Objective(s)
To assess FHWA's policies and procedures for overseeing States' compliance with Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (CRRSAA) requirements and tracking and monitoring CRRSAA funds.
Why This Audit
CRRSAA provided $10 billion to FHWA for Highway Infrastructure Programs (HIP) to prevent, prepare for, and respond to COVID-19-related impacts. The Act required FHWA to obligate the funds by the end of fiscal year 2024. By the end of March 2025, FHWA obligated $9.78 billion in CRRSAA funds with outlays of $8.43 billion. Due to the large amount of funds and timeframe for using them, as well as other Act requirements, we initiated this audit.
What We Found
FHWA generally followed its existing Federal-aid processes to oversee compliance with CRRSAA requirements and track funds but lacked sufficient details for Special Authority provisions.
FHWA instructed its Division offices to use existing processes and developed a HIP-CRRSAA Guidance memorandum to help oversee compliance with CRRSAA requirements and track the funds.
FHWA's HIP-CRRSAA Guidance covered project eligibility requirements, but lacked sufficient details for how States should use, and Divisions should oversee, Special Authority provisions that provide funding for activities not normally eligible under the STBG program.
FHWA followed processes to determine that projects met eligibility and project agreement requirements, complied with the non-Federal share requirement, and did not incur costs prior to obligating funds.
FHWA generally follows its processes to monitor CRRSAA projects and relies on State DOTs to reconcile differences in reported expenditure amounts.
FHWA uses a risk-based approach to monitor Federal-aid highway projects, including CRRSAA-funded projects, and identify potential risks. Division offices tailored their risk assessment and monitoring approaches to each project.
In 2024, FHWA revised its Stewardship and Oversight Agreements-intended to facilitate effective and efficient program delivery and adequate oversight-due to changes in laws and regulations.
Project expenditure reports contained discrepancies between FHWA and State DOT data, but we were able to reconcile those differences with updated State DOT data. FHWA relies on the State DOTs to reconcile differences in reported expenditure amounts.
Recommendations
FHWA generally followed its existing process to oversee CRRSAA compliance, track funds, and monitor projects, so we are not making recommendations.
