Appropriations

Each year, the President recommends a budget to carry out the activities of the federal government. An important component is the funding of grants to state and local air pollution control agencies under the Clean Air Act.

Appropriations

Early each year, the President proposes for Congress’ consideration a budget to run the federal government for the fiscal year beginning the following October 1.  During the ensuing months, Congress considers and adopts appropriations legislation for each federal agency, including the Environmental Protection Agency.  Included in EPA's appropriations are grants for state and local air pollution control agencies to carry out their responsibilities under the Clean Air Act.  These grants are an essential source of funding for state and local agency programs.  The grants are provided under two provisions of the Clean Air Act:  Sections 103 and 105.  In recent years, these grants have approximated $200 million annually.  Section 105, which is designed to support the implementation of programs to prevent and control air pollution and address primary (health) and secondary (welfare) ambient air quality standards, authorizes the federal government to provide grants equaling up to 60 percent of the cost of state and local programs, while state and local agencies must provide a 40-percent match. In practice, the federal share represents approximately 25 percent of total state/local air budgets, while state and local governments provide 75 percent. Section 103 authorizes the federal government to provide grants to conduct and promote the coordination and acceleration of research, investigations, experiments, demonstrations, surveys, and studies relating to the causes, effects (including health and welfare effects), extent, prevention, and control of air pollution.  Typically Section 103 has been used for specialized air monitoring programs.  

 

FY 2021 Budget and Congressional Appropriations

On February 10, 2020, the Administration released its proposed FY 2021 budget, which includes steep decreases in EPA’s funding. The Administration’s proposal calls for $6.66 billion for EPA’s budget (compared to $9.06 billion in FY 2020) and $151.9 million for state and local air grants under Sections 103 and 105 of the Clean Air Act (compared to $228.2 million in FY 2020).  The proposal also calls for transition of the PM2.5 monitoring program from Section 103 authority (which does not require matching grants) to Section 105 (which does require matching funds).

 

FY 2020 Budget and Congressional Appropriations

On March 11, 2019, the Administration proposed its FY 2020 budget for EPA, calling for steep cuts for the agency, including air programs.  The proposal calls for $6.1 billion for EPA, which is approximately $2 billion less than Congress appropriated in FY 2019 ($8.06 billion).  The Administration’s proposals for air program funding also include large reductions.  These include $151.96 million for state and local air quality grants under sections 103 and 105 of the Clean Air Act, which is $76.2 million (33.4 percent) less than the $228.2 million Congress appropriated for FY 2019.

 

FY 2019 Budget and Congressional Appropriations

On February 12, 2018, the Administration released its proposed FY 2019 budget, which includes steep decreases in funding for state and local air grants and EPA. The proposed budget, which now goes to Congress for consideration, calls for, among other things, $152 million for state and local air grants under Sections 103 and 105 of the Clean Air Act, which is a decrease of 33 percent ($75 million) from the FY 2017 amount of $227 million.  It calls for $6.1 billion for EPA in FY 2019, which is a decrease of $1.8 billion, or 23 percent, from the FY 2017 level.

 

FY 2018 Budget and Congressional Appropriations

President Donald Trump released the Administration’s “Budget Blueprint” for FY 2018 on March 16, 2017, containing general information about the proposed federal budget, which calls for cuts to EPA’s budget of 31 percent, reductions in EPA staff of 21 percent and a 45-percent cut to categorical grants (Section 103 and 105 air quality grants are under the categorical grant line item). The budget proposal, entitled, America First: A Budget Blueprint to Make America Great Again, is not detailed enough to ascertain the impact on state and local air quality grants specifically; however, it states that “[t]his funding level eliminates or substantially reduces Federal investment in State environmental activities that go beyond EPA’s statutory requirements.”  In May 2017, the Administration is expected to propose a more specific budget, which will be submitted to Congress for consideration. Congress has the ultimate say in how much to appropriate to federal programs.  

FY 2017 Budget and Congressional Appropriations

President Obama proposed EPA's FY 2017 budget on February 9, 2015, calling for $268.2 million for federal grants to state and local air pollution control agencies, which is $40 million above FY 2016 levels and equal to last year’s budget request.  The budget also proposes to establish the “Climate Infrastructure Fund” under the “21st Century Clean Transportation Plan,” which would be separate from and in addition to EPA’s regular budget.  It includes $1.65 billion over 10 years to retrofit, replace or repower diesel equipment, especially school bus upgrades. The program calls for up to $300 million in FY 2017 for renewed and increased funds for the DERA program, which is scheduled to expire in 2016.  Because of substantial new clean air responsibilities state and local air pollution control agencies will face in FY 2017, NACAA supports the proposed grant increases and recommends that state and local air agencies be given flexibility in how the increases are spent.  

FY 2016 Budget and Congressional Appropriations

President Obama proposed EPA's FY 2016 budget on February 2, 2015, calling for $268.2 million for federal grants to state and local air pollution control agencies, which is $40 million above FY 2015 levels.  Additionally, the Administration is proposing $4 billion for the “Clean Power State Incentive Fund” that would “support states that choose to go beyond their carbon pollution reduction goals in the power sector” (i.e., the Clean Power Plan).  In light of the substantial new clean air responsibilities facing state and local air pollution control agencies in FY 2016, NACAA is supporting the proposed grant increases and is recommending that state and local air agencies be given flexibility in how the increases are spent.  NACAA also supports proposed Clean Power State Incentive Fund.

FY 2015 Budget and Congressional Appropriations

President Obama proposed EPA's FY 2015 budget on March 4, 2014, calling for $243.2 million for federal grants to state and local air pollution control agencies, which is $15 million above FY 2014 levels.  In light of the substantial new clean air responsibilities facing state and local air pollution control agencies in FY 2015, NACAA is recommending increases of $50 million above last year's levels, or $35 million above the President’s request, for a total of $278.2 million. On December 16, 2014, President Obama signed H.R. 83, which included Congressionally adopted appropriations language for FY 2015 that included $228 million for state and local air grants – the same amount as in FY 2014.

FY 2014 Congressional Appropriations

President Barack Obama proposed the FY 2014 budget for EPA on April 10, 2013, calling for an increase of $21.5 million for state and local air grants.  Following a year of budget delays and a federal government shutdown, Congress adopted an Omnibus Continuing Resolution on January 14, 2014 that called for $228.2 million for state and local air grants under Sections 103 and 105, which is $4.8 million above the final FY 2013 level, but $29 million below the President’s FY 2014 request.