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         Congressional Research Service
~ Informing the legislative debate since 1914


March  15, 2019


Army Corps of Engineers: FY2020 Appropriations


Congress generally funds the civil works activities of the
U.S. Army  Corps of Engineers (USACE) in an annual
Energy and Water Development  appropriations act. These
activities include the planning and construction of water
resource projects and the operations and maintenance of
infrastructure and navigation improvements managed by
USACE   (e.g., navigation channels). For USACE civil
works, President Trump requested $4.8 billion for FY2020.
As shown  in Figure 1, Congress typically funds USACE
above the President's request for the year (e.g., $7.0 billion
for FY2019). This In Focus provides a primer on the
USACE   appropriations process for FY2020. For more
information on USACE  funding, see CRS Report R45326,
Army  Corps of Engineers Annual and Supplemental
Appropriations: Issues for Congress.

Figure  I. Annual USACE   Funding, FY2006-FY2020
(nominal $ in billions)


Source: Congressional Research Service (CRS).

USACE Funding and FY2020 Request
Unlike federal agencies that distribute funds by formula or
through competitive grant programs, USACE directly
engages in project planning and construction. It uses most
of its appropriations to work on specific studies and
projects authorized by Congress. These activities are often
cost shared with nonfederal project sponsors or users.

The FY2020  request prioritizes maintaining performance of
existing infrastructure, as reflected by the share of funds
requested for operations and maintenance (O&M; see
Figure 2). It would initiate no new studies or construction
projects (referred to as new starts). In response to similar
requests in recent years, Congress has required USACE to
start a specified number of new construction projects and
new studies (e.g., five new construction projects and six
new studies in FY2019). The FY2020 request also seeks to
limit funding to ongoing navigation and flood risk reduction
construction projects with benefit-cost ratios (BCRs)


greater than 2.5 to 1 (i.e., project benefits are at least two
and a half times project costs) or projects that address safety
concerns. Many congressionally authorized USACE
projects do not have BCRs that meet the Administration's
2.5 BCR  budget development threshold.

Figure 2. USACE   Account  Funding,  FY2013-FY2020
(nominal $ in billions)


Source: CRS.
Notes: Req = Budget request. ASA = Assistant Secretary of the
Army. Regulatory = Permit program for nonfederal activities affecting
regulated waters and wetlands. FUSRAP = Formerly Utilized Sites
Remedial Action Program. FY2020 request proposes to transfer
FUSRAP to Department of Energy. FY2020 request renews an
FY20 19 proposal to create two new navigation-related accounts; the
figure shows funding for FY2020 in traditional USACE accounts.

Since the 112th Congress, earmark moratorium policies
have limited congressional funding for site-specific projects
(i.e., congressionally directed spending or earmarks). In
lieu of adding or increasing funding for specific USACE
projects, Congress has provided additional funding for
categories of USACE work. For example, in FY2019,
Congress provided $2.0 billion in additional funding for 25
categories of USACE activities. After Congress enacts the
agency's appropriations, the Administration develops a
USACE   work plan for the fiscal year. In the work plan, the
Administration identifies the authorized USACE activities
and projects receiving the additional funding.

Selected FY2020 Topics of Deliberation

Navigation  Funding
Receipts from federal taxes on navigation interests are
deposited into two trust funds-the Harbor Maintenance
Trust Fund (HMTF)  and the Inland Waterways Trust Fund
(IWTF). The trust funds are used in the discretionary
appropriations process to pay for some USACE navigation
activities. In FY2019, USACE funding for its navigation-
related activities is expected to reach $3.3 billion; the


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$7.0                         * Expenses & ASA
$6.0                         - Regulatory





$2.0                          Tribs.
$1.0                          Mainte [lance
$0.0                         * Construction


$7.0
$6.0
$5.0
$4.0
$3.0


$2.o


N Expenses & ASA

MRegulatory
E Flood Control and
Coastal Emergencies
FUSRAP
Mississippi River&
Tribs.
Operations &
Maintenance


$7.0
$6.0
$5-0
$4.0
$3.0
$2.0
$1.0
Sto _


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Annual Appropriation   a Budget Request

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