- The costs of Federal administration of the program were provided for by reservation of 3 percent of the appropriated funds for this purpose
The legislators used foresight, too, in establishing in the Act the basic roles of the States and the Federal Government in project procedures. The Act first defined the term “construction” and then outlined these procedures:
- When proposed projects were approved by the Federal agency, the State highway department was responsible for the preparation of plans, specifications and estimates (PS&E) for review and approval by the Federal agency.
- Upon Federal approval of the plans, specifications and estimates, the applicable Federal funds were “obligated” and reserved for future payment to the State.
- The construction work and labor in each State was to be done in accordance with its laws and under the direct supervision of the State highway department, subject to the inspection and approval of the Federal agency and in accordance with the rules and regulations established under the authority of the legislation.
- Reimbursements to the States for the Federal share of State expenditures for projects could be made as work progressed subject to its approval by the Federal agency.
- Upon completion of any project in compliance with the plans and specifications, final reimbursement of the Federal share of the project costs was to be made upon approval of the Federal agency.
Other provisions of the 1916 Act included:
- Funds were appropriated with authorization to proceed.
- The matching ratio of State funds to Federal funds was 50 percent.
Most of the basic philosophies, principles, policies, procedures, and controls established in the 1916 Act still exist today.
Before work could be started under the 1916 Act, many problems had to be resolved to establish the radically new Federal–State partnership. Eleven States did not have highway departments within the meaning of the law and required legislation to create them. In many others, some legislation was necessary. In some States, the highway departments could not exercise the necessary direct supervision. In others, State and local funds were not available to match the Federal funds, nor could adequate maintenance assurance be given. All the States had to assent to the provisions of the 1916 Act through their legislatures or temporarily through their Governors if they wished to participate. In spite of all these problems, by June 30, 1917, all States but one[N 1] had a highway department and had agreed to the requirements and terms of the Act.[2]
Recognizing that some States would not have agencies empowered to carry out the provisions of the Act, Congress provided that the availability of the Federal funds to those particular States could be extended for an additional 2 years. This gave those States not having a State highway department both the incentive and the time to take the necessary legislative or administrative action to establish one. A “forfeiture” feature provided that any funds not expended by the end of their availability would be reapportioned among all the States. Obviously, it was advantageous for the States to create State highway departments if they did not already have them.
The rules and regulations for carrying out the Federal Aid Road Act were issued by the Secretary of Agriculture on September 1, 1916. “In them he designated the Office of Public Roads and Rural Engineering as his representative in the administration of all [sections] of the act except Section 8, which applied to roads in national forests.” Section 8 was assigned to the Forest Service for apportionment of funds and the selection of projects, although surveying and construction work on the forest roads was to be performed under the supervision of the Office of Public Roads and Rural Engineering (OPRRE).[3]
Implementation of the 1916 Act had just gotten well underway when the United States entered World War I in April 1917. The war curtailed road construction but did not bring it to a complete halt. Efforts were made to limit construction of roads to those needed for military purposes or war industry.
Hoist and dump body, built by the Washington State Highway Department, are mounted on a 1½-ton Kelly Springfield truck which was WW I Army surplus. Equipment such as this aided the accelerated postwar highway program.
By the end of the war, roads had deteriorated from inadequate maintenance and heavy traffic, and an accelerated program was necessary. It was also believed that there would be extensive unemployment as a result of demobilization of the Armed Forces and war industry. Congress responded by including in the Post Office Appropriation Act for 1920 an appropriation of $200 million for additional Federal aid under the Federal Aid Road Act of 1916. Of this amount, $50 million was available immediately for fiscal year 1919 and $75 million for each of the fiscal years 1920 and 1927. The Act also provided an additional $9 million for forest roads at the rate of $3 million for each of the fiscal years 1919, 1920 and 1921. An additional Federal subsidy to the road program was included by the transfer of surplus war materials and
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