Enclosure

PROPOSED OFFSETS FOR SUPPLEMENTAL HURRICANE FUNDING

Emergency-Designated Proposed Cancellations
Agency
Department of
Agriculture

Account
Emergency Conservation
Activities, Emergency Watershed
Protection Program

Department of
Energy

Advanced Technology Vehicle
Manufacturing Loan Program

Department of
Energy

Title XVII Innovative Technology
Loan Guarantee Program

Department of
Labor

Training and Employment
Services, Recovery Act

Corps of
Operation and Maintenance
Engineers―Civil
Corps of
Flood Control and Coastal
Engineers―Civil Emergencies
Estimated Total, Emergency-Designated
Cancellations:

Amount
Explanation
$204,000,000 Of the $204 million in balances available in the Emergency Watershed Protection Program, $104 million
relates to funding provided in response to Hurricane Sandy. An additional $100 million, approximately, in
miscellaneous emergency funding is included, which was provided in response to specific disasters
occurring in specific years and is no longer needed for emergency response and recovery efforts as
previously provided.
$4,333,499,813 Since the Advanced Technology Vehicle Manufacturing program's inception in 2007, only five loans have
been closed under this authority. Since 2011, no new loans have closed. Efforts to increase the
attractiveness of the program to potential borrowers have not yielded increased loan activity. While
solicitations for new loan applications are currently open, based on the low level of past and current loan
activity, it is unlikely any funds will be obligated in the near-term. The 2018 Budget also proposes to
cancel all remaining appropriated credit subsidy for this program. The Senate mark does not include this
rescission but the House cancels $1,966 million of these balances.
$479,428,967 ARRA provided $2.5 billion in credit subsidy for a temporary loan guarantee program (Sec. 1705). The
authority to make obligations for new loan guarantees expired in 2011. Sec. 1306 of the Dodd-Frank Act
(Pub.L. 111–203) rescinded all unobligated ARRA balances as of December 31, 2012. At that time, a
Presidential waiver retained $96 million of the Title 17 ARRA balances for future potential modification
costs related to management of the Sec. 1705 loan portfolio. Due to recoveries of prior year obligations,
$383 million in unobligated ARRA balances has accumulated in the account since December 31, 2012.
All available
amounts,
estimated to be:
$22,913,265

The Health National Emergency Grants (NEGs) were authorized under the American Reinvestment and
Recovery Act to help states implement the Health Coverage Tax Credit (HCTC) for Trade Adjustment
Assistance recipients. There are two types of HCTC NEGs: infrastructure and Gapfiller. Infrastructure
NEG funds can be used to help states establish the systems and procedures needed to make healthcare
benefits available for eligible individuals. Gapfiller NEGs can be used to provide assistance and support
services, including qualifying health insurance coverage, transportation, child care, dependent care and
income assistance, to eligible individuals waiting to receive payments through the HCTC. The initial
HCTC authorization expired on January 1, 2014, but was reinstated in 2015. Since the HCTC program
was reinstated, the Department of Labor has only distributed $1.4 million in Health NEGs and has no
plans for the remaining funds.

$210,000,000

While the 2018 Budget assumed these funds would be spent in fiscal year 2018, the Corps of Engineers
has now identified these funds as excess. They were appropriated to restore Federally-owned projects
$519,765,385
damaged by Hurricane Sandy; that work has been completed, so these funds are no longer necessary.
$5,769,607,430

Page 1 of 4

 All Other Proposed Cancellations
Agency
Department of
Agriculture

Account
Agriculture Research Service,
Buildings and Facilities

Department of
Agriculture

Rural Economic Development
Grants

Department of
Agriculture

Rural Business Program

Department of
Agriculture

Rural Electrification and
Telecommunication Program

Department of
Agriculture

Animal and Plant Health
Inspection Service

Department of
Agriculture

Watershed and Flood Prevention
Operations

Department of
Agriculture

Farm Security and Rural
Investment

Department of
Agriculture

Special Supplemental Nutrition
Program for Women, Infants, and
Children
Student Financial Assistance

Department of
Education

Amount
Explanation
$212,000,000 This account provides funds for the modernization of equipment or facilities for the Agricultural Research
Service. Funding for modernization efforts can be delayed while still supporting the agency’s core mission.
The 2018 Budget proposed to cancel $212 million.
$196,000,000 The spending authority for this account is intergovernmental interest earned on a monthly basis on loan
deposits (held in escrow) from rural electric and telecom borrowers. The 2018 Budget proposed to cancel
$176 million; the current House and Senate 2018 bills both propose to cancel $196 million.
$25,000,000 This account funds direct and guaranteed business and industry loans, and rural business development
grants. Available funding is from cancelled prior-year obligations. The 2018 Budget proposed to cancel
$25 million.
$8,000,000 The balances are for the Rural Energy Savings Program, which provides zero interest loans to rural
utilities for energy efficiency programs. This funding is available due to low demand. The Senate proposes
to cancel $8 million in its mark; the House does not.
$72,000,000 The Animal and Plant Health Inspection Service carried over available unobligated balances into fiscal
year 2018 from their emergency preparedness funds ($16 million), animal health programs ($26 million),
plant health programs ($30 million).  
$90,000,000 There are approximately $90 million in discretionary balances available in the Watershed and Flood
Prevention Operations account that were provided for non-emergency purposes.  These funds would not
impact existing contracts and are available for offset.
$1,419,000,000
Of the unobligated balances available for mandatory conservation programs, $1,419 million is associated
with funding provided in prior years for program enrollment, including approximately $400 million to
service legacy contracts for programs repealed as part of the 2014 Farm Bill, $230 million in balances
carried forward for the Conservation Stewardship Program, and approximately $551 million set aside for
potential future agreements under the Regional Conservation Partnership Program. 
$800,000,000

The 2018 House and Senate marks include $600 million and $800 million rescissions, respectively. The
unobligated balances are due to lower than projected costs.

$3,900,000,000 The House and Senate have marked this 2018 Budget cancellation at $3,271 million and $2,600 million
respectively.  This $3,900 million cancellation reflects the 2018 Budget request and is not in addition to
that amount. Unobligated balances in the Student Financial Assistance account would support Pell Grant
program costs in future award years; students will receive the full maximum award for which they are
eligible in 2018.

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 All Other Proposed Cancellations
Agency
Department of
Health and
Human Services

Account
Non-recurring Expenses Fund

Department of
Justice

Working Capital Fund

Department of
State

Democracy Fund

Department of
Transportation

Federal-Aid Highways

Environmental
State and Tribal Assistance Grants
Protection Agency (STAG)

Environmental
Environmental Programs and
Protection Agency Management (EPM)

Estimated Total, All Other Cancellations:
Total: Emergency Designated and All Other
Cancellations:

Amount
Explanation
$560,000,000 This 2018 Budget cancellation is marked in the House and Senate at $560 million. The Non-recurring
Expenses Fund is a no-year account that receives transfers of expired unobligated balances from
discretionary accounts prior to cancellation. The Fund is used for capital acquisition, including facilities
infrastructure and information technology infrastructure.
$410,000,000 This 2018 Budget cancellation is marked at $410 million and $400 million in the House and Senate
respectively. The Working Capital Fund finances, on a reimbursable basis, those administrative services
that can be performed more efficiently at the Department level.
$99,000,000 The Democracy Fund account funds democracy programs carried out by the Department of State and U.S.
Agency for International Development. The account customarily does not obligate funds until the second
year. The FY 2018 Budget requested $112 million of Democracy Funds under the Economic Support and
Development Fund (ESDF) account.  As such, the Administration does not believe that any more than
$112 million is needed in FY 2017, which would free up $99 million of the current balances as a possible
offset.
$1,000,000,000 Federal-Aid Highways funds have a four year period of availability that allows States flexibility in long
term planning for transportation infrastructure projects.  This proposal rescinds contract authority of prior
years that states have not yet obligated and which are above the obligation limitation.  However, states will
continue to have sufficient Federal Aid balances to meet their construction plans for 2018.
$150,000,000 A $200 million cancellation within this account was proposed in the 2018 President’s Budget. The 2018
House Appropriations Bill proposes to cancel $60 million from this account. This appropriation supports
EPA programs by providing grants to State and Tribal partners that fund the implementation programs to
protect human health and the environment. The STAG account has significant carryover due to a late 2017
final appropriations and EPA, resulting in EPA being unable to obligate all of the grants within fiscal year
2017.
$100,000,000
The 2018 President’s Budget proposes a $100 million cancellation within this account. The 2018 House
Appropriations bill proposes to cancel $41 million from this account. EPA has been unable to fully staff
up to their staffing caps, resulting in carryover that was allocated as pay in the fiscal year 2017 operating
plan. EPA has also not yet been able to obligate all of the 2017 nonpay appropriations due to a late 2017
omnibus. This EPM appropriation includes funds for salaries, travel, contracts, grants, and cooperative
agreements for pollution abatement, control, and compliance activities and administrative activities of the
operating programs, including activities under the Working Capital Fund. This appropriation supports the
operation and management of core agency programs that implement environmental statutes.
$9,041,000,000
$14,810,607,430

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 Extend Nondefense Joint Committee Sequestration
Agency
Account
Nondefense, non-exempt budget accounts and
programs

Total, All Proposed Offsets to Hurricane
Supplemental Funding:

Amount
Explanation
$44,422,000,000 The 2018 Budget proposed to extend the Joint Committee sequestration, pursuant to 251A of the Balanced
Budget and Emergency Deficit Control Act, as amended, for an additional two years. Extending
mandatory sequestration is estimated to result in net savings of $44,422 million in budget authority and
$39,374 million in outlays over the 2025 to 2027 window.

$59,232,607,430

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