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DOT reports FHWA obligations, eyes $126 million August redistribution and monitors grant flow
Summary
DOT told the Senate Transportation Committee it had obligated substantial FHWA formula funds for the year, is tracking incoming grants, and is preparing to capture roughly $126 million in anticipated August redistribution if the STIP amendment clears federal review.
Department of Transportation officials told the Senate Transportation Committee on May 13 that Alaska has already obligated a large share of its fiscal‑year surface transportation funds and is preparing to capture a targeted August redistribution of federal formula dollars.
Dom Pannone, director of program management and administration, briefed the committee on federal funding posture and staffing at the Federal Highway Administration's Alaska division office. He said the FHWA Alaska office has 18 positions and "about two‑thirds of those positions are currently vacant" and that the division has recently hired a new division administrator. Pannone said the department and FHWA were working closely as DOT prepares STIP amendment 2 for formal FHWA review after public comment.
Pannone told the committee that DOT has obligated roughly $244.7 million of formula funds that are subject to a statutory limitation and roughly another $100 million of funds not subject to the annual limitation; the department's formula spending limitation for the current fiscal year is about $581 million. He said DOT is monitoring the potential to capture an additional $126 million in August redistribution and that staff are working with FHWA to prepare project packaging and documentation.
Officials also told the committee they have started to see grant awards from prior federal competitions begin to flow into Alaska projects — including grants for scalable operations and advanced remote technologies, avalanche mitigation detection projects and a small community air service grant for Fairbanks International Airport — and that they are tracking the return of programs such as the World Ferry Program.
Committee members asked whether the department was on track to capture the August redistribution and whether there were legislative steps that would help. Dom Pannone said the department is "highly confident" in its preparations and that DOT is using new funding flexibilities and closer coordination with metropolitan planning organizations to position projects for obligation. Andy Mills added that discretionary grants, congressional directed spending and other funding buckets can change the department's capacity and that DOT staff are engaged with congressional offices on CDS requests.
DOT told the committee it is monitoring the next federal funding bill; staff said a draft they had reviewed showed a 5.8% overall increase in funding levels with some program increases and some program decreases in aviation grant lines. The department said it will continue to brief the committee as the STIP amendment and funding landscape evolve.
