The United States TerritoriesâAmerican Samoa, Guam, Northern Mariana Islands, and the U. S. Virgin Islandsâall receive federal funding for their roads and highways. The Territories' treatment under the Federal-Aid Highway Program (FAHP), however, differs significantly from that of the 50 states and the District of Columbia. Background

Prior to 1970 most road construction and maintenance was financed and carried out by the territorial governments. Territorial Highway Program (THP)

		Founding Legislation

Despite the DOT recommendation against the establishment of a federally financed highway program for the territories, the Federal-Aid Highway Act of 1970 (FAHA70)(P.L. 91-605), section 112, established the Territorial Highway Program(THP). The Act authorized DOT to assist each of the three territories (the Virgin Islands, Guam, and American Samoa) in a program for the construction and improvement of a system of arterial highways and inter-island connectors (envisioned as road links from arterial highways to airports or seaports) to be designated by each territory's Governor. DOT was also directed to provide technical assistance to each territory to assist in the creation of an appropriate agency to administer the program. First, the bill added the Northern Mariana Islands to the THP and provided the Islands with $1 million annually for the life of the authorization, FY1979-FY1982. Transportation Equity Act for the Twenty First Century (TEA-21)(P.L. Non-THP Highway Funding for the Territories

The territories may receive highway funding from sources other than the THP, including the Emergency Relief Program, the High Priority Projects Program, and certain highway safety programs. Pro

The arguments generally made in support of federal aid to the territories, including highway aid, are usually framed in terms of the transportation and development needs of the territories, the benefits the territories provide to the United States, and their limited enfranchisement. The FAHP is funded from the highway account of the HTF. TEA-21 Reauthorization Options

As the debate over the reauthorization of federal surface transportation programs continues, Congress may address a number of options concerning federal highway funding for the territories. The overall issue for the territories is the appropriate extent of their participation in the FAHP. Options range from elimination of the THP to expanding territorial participation in FAHP programs to equal that of the states. Elimination of the THP is unlikely since the federal commitments to economic development of the territories would probably be strong enough to prevent elimination of the THP. On the other hand, the fact that the territories do not pay the taxes that provide revenue to the HTF will probably preclude them from full participation in the programs that the HTF pays for. Because the definition of a "state" in Title 23 U.S.C. The Bush Administration Reauthorization Proposal: the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003 (SAFETEA) (H.R.
The United States TerritoriesâAmerican Samoa, Guam, Northern Mariana Islands, and the U. S. Virgin Islandsâall receive federal funding for their roads and highways. The Territories' treatment under the Federal-Aid Highway Program (FAHP), however, differs significantly from that of the 50 states and the District of Columbia. Prior to 1970 most of the road construction and maintenance activity was financed and carried out by the territorial governments. In 1970, Congress established the Territorial Highway Program (THP) in the Federal-Aid Highway Act of 1970 (P.L. 91-605). The Act authorized the Department of Transportation (DOT) to assist each of the three territories, the Virgin Islands, Guam, and American Samoa (the Northern Mariana Islands were added to the program in 1978), in a program for the construction and improvement of a system of arterial highways to be designated by each territory's Governor. DOT was also directed to provide technical assistance to each territory to assist in the creation of an appropriate agency to administer the program.
During the more than 30 years the program has existed the THP's enacting language (23 U.S.C. 215) has basically remained the same but the level of financing varied with each reauthorization. Program funding varied from a low of $4.5 million annually, in FY1970-FY1973 to a high of $36.2 million in FY2003. Some funding from other program sources has also gone to the territories. The Emergency Relief Program, the High Priority Project Program, and certain safety programs have provided funding for territorial highways over the years.
The arguments generally made in support of federal aid to the territories, including highway aid, are usually framed in terms of the transportation and development needs of the territories and the benefits the territories provide to the United States. The arguments against expanded territorial eligibility under federal-aid highway programs are framed by the territories' exemption from the taxes that support the highway account of the Highway Trust Fund (HTF), the implications of the territories limited land area, and their non-state status.
As reauthorization of the Transportation Equity Act for the 21 st Century (TEA-21) ( P.L. 105-178 ), Congress may address a number of options concerning federal highway funding for the territories. The overall issue for the territories is the appropriate extent of their participation in the FAHP. The options range from elimination of the THP to expanding territorial participation in FAHP programs to equal that of the states. Elimination of the THP appears unlikely given the federal commitments to economic development of the territories. On the other hand, the fact that the territories do not pay the taxes that provide revenue to the HTF will probably preclude them from full participation in HTF programs. The Bush Administration proposal, the Safe, Accountable, Flexible, and Efficient Transportation Equity Act (SAFETEA)( H.R. 2088 ), would make a number of changes in the THP and retain its authorization at the TEA21 annual level of $36.4 million. This report will be updated as warranted by events.