The Highway Trust Fund primarily supports surface transportation  programs administered by four DOT operating administrations—FHWA,  FTA, FMCSA, and NHTSA. FTA also collects data on the activities that are funded  with Highway Trust Fund obligations each year, while NHTSA and  FMCSA collect and report data on obligations from the Highway Trust  Fund by grant programs. FHWA, NHTSA, and FMCSA also receive  funding from the Highway Trust Fund for administrative expenses. FHWA Collects Some Information on Funded Highway Activities but Does Not Collect Some Project Data

In fiscal year 2013, FHWA obligated about $41 billion from the Highway  Trust Fund, most of which (about $39 billion) was apportioned to states  for activities to improve the nation’s roadway and bridge infrastructure  through the federal-aid highway program. While FHWA collects information in FMIS on the type of activities funded  with Highway Trust Fund monies, it does not currently collect and report  aggregate spending data at the project level for the majority of projects on  a routine basis.individual project segments or contracts, but not for an entire project. DOT Administrations Supported a Range of Administrative Expenses with Highway Trust Fund Monies

Within DOT, FHWA, FMCSA, and NHTSA receive Highway Trust Fund  monies for administrative expenses such as personnel salaries and  benefits and rent. In fiscal year 2013, FHWA obligated $22 million for these  programs. Conclusions

Motor fuel taxes that support the Highway Trust Fund are eroding,  resulting in fewer resources to fund surface transportation projects and  requiring, in recent years, infusions of funding from general revenues. In recent years, FHWA has taken some positive steps to collect and  report aggregate spending data for its “major” projects, but does not  currently collect and report aggregate spending data for other projects,  which represented nearly 88 percent of all fiscal year 2013 federal-aid  highway obligations. FHWA could collect and report aggregate spending  data for all projects in FMIS since the database already has two existing  data fields that could be used to collect this information. According to  FHWA officials, collecting this data in FMIS could result in some  increased costs to states; however, FHWA does not have an estimate of  what the associated costs for tracking this information would be to states. FHWA is currently in the process of  modernizing its FMIS database system, which could provide FHWA with  an opportunity to explore options for further refining FMIS to collect  consistent aggregate spending data for all projects or other options for  collecting this information. Improving FMIS to allow states to provide  project-level data could aid FHWA in its risk-based oversight of federal- aid highway programs by allowing FHWA to more easily draw consistent  data for its compliance assessment reviews. In addition, collecting  project-level data could assist FHWA in tracking and reporting information  to Congress and the public about how the majority of federal funds from  the Highway Trust Fund are being used. Recommendation for Executive Action

To improve transparency and provide Congress and the public greater  visibility into the types of highway activities funded with Highway Trust  Fund monies, we recommend that the Secretary of Transportation direct  the FHWA Administrator to explore the costs, feasibility, and options for  collecting and publicly reporting consistent aggregate project-level  spending data. DOT agreed with our recommendation and provided technical comments,  which we incorporated as appropriate. GAO staff who made major contributions to  this report are listed in appendix V.

Appendix I: Objective, Scope, and Methodology

The objective of this report was to examine what is known about the types  of projects, activities, and federal administrative functions and expenses  supported by the Department of Transportation (DOT) using Highway  Trust Fund monies in fiscal year 2013. To identify the types of projects, activities, and administrative expenses  that have been undertaken using Highway Trust Fund monies in fiscal  year 2013, we obtained and analyzed data from the Federal Highway  Administration (FHWA), the Federal Transit Administration (FTA), the  National Highway Traffic Safety Administration (NHTSA), and the Federal  Motor Carrier Safety Administration (FMCSA) of fiscal year 2013  obligations for all programs and administrative expenses funded with  Highway Trust Fund monies.
Why GAO Did This Study

In recent years, dedicated revenues to the Highway Trust Fund have been eroding, resulting in fewer resources to fund surface transportation projects and requiring, between 2008 and 2014, transfers of over $50 billion in general revenues. Four operating administrations within DOT—FHWA, FTA, NHTSA, and FMCSA—receive funding from the Highway Trust Fund for programs administered by these agencies, and FHWA receives the largest share (81 percent of the agency's authorizations in fiscal year 2013).
GAO was asked to review how Highway Trust Fund monies are being used to help ensure that sound choices and investment decisions about future funding are made. This report examines what is known about the types of projects, activities, and federal administrative functions and expenses supported by DOT using Highway Trust Fund monies in fiscal year 2013. To address this request, GAO obtained and analyzed fiscal year 2013 federal obligation data from DOT's operating administrations, reviewed relevant documentation, and interviewed FHWA, FTA, FMCSA, NHTSA, and DOT officials.

What GAO Found

In fiscal year 2013, operating administrations within the Department of Transportation (DOT) collected and reported some information on the types of activities and administrative expenses funded from the Highway Trust Fund, but did so with varying levels of detail. The Federal Highway Administration (FHWA) obligated about $41 billion in fiscal year 2013, most of which ($39 billion) was apportioned to states through the federal-aid highway program. FHWA tracks federal-aid highway program obligations in its Fiscal Management Information System (FMIS), for individual project segments or contracts. This process allows FHWA to collect and report information on the types of activities (such as obligations for the construction of new roads or bridges) funded with Highway Trust Fund monies.
However, FHWA does not collect and report aggregate project-level data for the majority of projects on a routine basis. Aggregate project-level data would allow FHWA to track and report the total overall obligations of an entire project. While FHWA tracks and reports aggregate obligations for its “major projects” (projects with a total cost of $500 million or more), it does not collect and report aggregate obligations for other projects, which represented nearly 88 percent of all fiscal year 2013 spending. FHWA could collect and report aggregate obligations for all projects in FMIS, and FMIS has two existing data fields that could be used to collect this information. But according to FHWA officials, doing so would result in increased costs to FHWA and states. FHWA officials attributed increased costs to, among other things, programming costs to make changes to FMIS to track these data; however, FHWA has not completed a cost analysis to estimate what the associated costs would be. FHWA is currently in the process of modernizing its FMIS database system. Exploring the costs, feasibility, and options for collecting and reporting consistent aggregate project-level obligations could aid FHWA in its oversight efforts, including its ability to more easily draw consistent data for its compliance reviews and to report information to Congress and the public about how the majority of federal funds from the Highway Trust Fund are being used.
The Federal Transit Administration (FTA), the National Highway Traffic Safety Administration (NHTSA), and the Federal Motor Carriers Safety Administration (FMCSA) also collect some information on activities funded with Highway Trust Fund monies. For example, FTA collects data on activities, such as obligations for bus and rail purchases, funded with Highway Trust Fund monies each year, and NHTSA and FMCSA collect and report data by grant program. In addition, within DOT, the FHWA, FMCSA, and NHTSA used Highway Trust Fund monies for a range of administrative expenses, such as personnel salaries and benefits and rent. FTA does not receive Highway Trust Fund monies for administrative expenses.

What GAO Recommends

GAO recommends that the Secretary of Transportation direct the FHWA Administrator to explore the costs, feasibility, and options for collecting and publicly reporting consistent aggregate project-level spending data. DOT agreed with our recommendation. DOT also provided technical comments, which we incorporated, as appropriate.