Can a State cancel a prior AC authorized project and obligate ARRA appropriations and/or other Federal-aid funds on a project that meets Federal Requirements?

AC authorizations approved prior to February 17,2009, that have not incurred any obligations of Federal-aid funds (i.e. No "conversions") may be cancelled (withdrawn) by the Division and then a new authorization/obligation of ARRA funds may be established which covers the anticipated contract costs under project agreement (including projects funded with both ARRA funds and other Federal-aid funds). Note that such authorizations may not include an effective date prior to the date of obligation of the ARRA funds and may only include work performed after obligation of funds.

Also, a new AC project may not be authorized as part of a project authorized with ARRA funds. Note also that the ARRA “maintenance of effort” requirements must be considered for any state funds that have been freed up. See Question 41 for more details concerning split funding.

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