Guidance on Local Program Project Readiness for Annual Federal Redistribution
WisDOT is working with local governments and organizations to identify projects that can be funded with federal fiscal year (FFY) 2024 federal redistribution funds.
What is Federal Redistribution Funding?
Federal Redistribution
Federal redistribution is an annual formula-based process occurring in August that affords a state an opportunity to request additional federal funds above their annual initial obligation limitation. These additional funds are made available when other states are unable to obligate formula or discretionary-based funds prior to the end of the federal fiscal year. A few things to note about federal fiscal year (FFY) 2024 redistribution:
FFY 2024 will likely have a historic amount of annual redistribution available to states.
Historically, states are not notified of the amount they are eligible to receive through redistribution. However, the Federal Highway Administration (FHWA) has notified the Wisconsin Department of Transportation (WisDOT) that it is eligible to request $206 million in additional obligation authority in FFY 2024.
To obligate these funds, the state must have federal contract authority balances in a federal aid program and have projects eligible for the individual federal aid programs with contract authority balances.
Funds must be obligated by the end of the FFY (September 30, 2024). Failure to do so results in serious financial implications for the state.
Program Availability
The WisDOT programs with contract authority balances with the most potential for local consideration are:
Contract Authority versus Obligation Limitation
Federal redistribution is not additional contract authority—redistribution is only additional obligation limitation. Both are needed in order to fund an improvement project with federal aid. This means that while a state may be eligible to receive a certain amount of funds through annual redistribution, their ability to request those funds will be limited by the type and amount of contract authority they have in balances.
WisDOT
MUST obligate all obligation limitation received in a given year prior to the end of the federal fiscal year - this includes any received through August redistribution. If any funds are left unobligated, the unobligated funds will lapse and WisDOT will lose the opportunity to submit a redistribution request the following year.