Nevada allowed to spend remaining federal highway funds

WASHINGTON – Nevada was given the green light on Friday to spend $673,000 in federal funds left over from a highway project in Henderson.

The money was allocated by Congress in a 2004 spending bill as part of a
$5 million earmark to help build the “Henderson Spaghetti Bowl” interchange at Interstates 215 and 515.

Some $4.3 million was spent, and the leftover money remained on the books at the Department of Transportation, with $473 million from unspent earmarks in 48 other states.

In an election-year move, the Obama administration announced that governors would be given the chance to spend the money on other roads, bridges, railways and bus systems.

“These idle earmarks have sat on the shelf while our infrastructure continued to age and construction workers stood on the sidelines,” Transportation Secretary Ray LaHood said. “These funds need to be put to use now so we can get people back to work.”

A new “use it or lose it” program requires states to identify new targets for the leftover money by Oct. 1 and to spend the money by the end of the year.

According to the White House, money not spent by Dec. 31 would be directed to states that are moving forward with new projects. But LaHood said he planned to give governors plenty of flexibility.

Among neighboring states, Arizona’s unspent earmarks totaled $6.5 million, Utah had $3 million, and California’s total was $43 million.

While Nevada’s portion was relatively small, state officials said it probably would remain in Southern Nevada and possibly be redirected to the upgrade of the Cactus Avenue interchange to Interstate 15.

“The good news is that it is found money. It all helps,” said Scott Magruder, spokesman for the Nevada Department of Transportation.

LaHood told reporters it would be difficult to say how many jobs might be created until governors weigh in with their plans to repurpose the money.