Why can lapsed ARRA funding be deobligated and reobligated in the same fiscal year similar to Federal-Aid funding?
ARRA funds are general fund appropriations and subject to title 31 general fund rules. There is a very limited exception under 31 USC 1553 that relates to use of lapsed appropriations for costs associated with timely obligations relating to legitimate overrun costs associated with the original timely obligation (purpose) within the scope of work associated with the original obligation. Unlike typical Federal-Aid funding, State DOTs do not have an unfettered ability to obligate after expiration of period of availability. The exact opposite is true; there is a very limited ability to obligate after lapse and that ability must be within the parameters of the limited authority under 31 U.S.C. 1553 (and even that is limited to 1% of available appropriations).