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Changes how federal formula highway and other surface-transportation funds are split among the States beginning in fiscal year 2027. State shares will be calculated using each State’s share of 2012 apportionments as the base, while guaranteeing no State falls below a floor set at 95% of a percentage tied to that State’s share of Highway Trust Fund tax payments. The Secretary of Transportation must apply this apportionment formula each October 1.
The bill increases predictability and protects recent high contributors by anchoring apportionments and setting near-minimum guarantees, but it freezes a 2012-based distribution that can entrench geographic and fuel-tax inequities and reduce flexibility to meet current growth, transit, and climate-‑
State governments will get more predictable baseline highway funding because apportionment shares are anchored to 2012 allocations, reducing sudden year-to-year losses.
States that currently pay more into the Highway Trust Fund (higher fuel-tax contributors) will be protected from steep cuts because no State will receive less than 95% of a share tied to recent HTF tax contributions.
State and local transportation planners gain timing certainty because apportionments are made on a fixed annual date (October 1), improving budgeting and project scheduling.
Residents of fast-growing States and their local governments may receive less funding than under a modern population- or needs-based formula, limiting road and transit improvements where growth has increased demand.
Lower fuel-consumption States and many rural communities could be disadvantaged because tying minimums to recent HTF tax payments favors high fuel-use/wealthier States and can entrench funding disparities.
Urban transit riders and communities needing climate resilience may lose out because using 2012 distribution weights locks in outdated patterns and reduces flexibility to shift funds toward transit, multimodal projects, or climate adaptation.
States facing emergent transportation crises and federal policymakers will have less flexibility because guaranteeing near-minimum shares (95% floor) could constrain the federal government's ability to reallocate limited funds to urgent national priorities.
Establishes the official short title for the Act as the "Highway Formula Fairness Act."
Amends 23 U.S.C. § 104(c) by replacing the subsection with a new formula for calculating combined State apportionments for multiple Federal surface transportation programs starting in FY2027.
Requires that for fiscal year 2027 and each fiscal year thereafter, the combined apportionment amount for each State for specified programs be determined by a two-step calculation: an initial amount based on the State's share of fiscal year 2012 apportionments, followed by adjustments to ensure a minimum amount.
Defines the 'initial amount' as the total amount available for apportionment multiplied by the State's share equal to the proportion of that State's 2012 apportionments to total 2012 apportionments for all States.
Requires adjustment of the initial amounts so that each State's combined apportionments are not less than 95 percent of the 'applicable percentage' multiplied by the total funds available for apportionment.
Primary impacts fall on State governments and their transportation programs. State Departments of Transportation will receive apportioned shares computed under a new baseline tied to 2012 apportionments, which can shift funding up or down relative to current practice. Local governments and transit agencies that rely on federal formula dollars may see changes in grant amounts passed through by States. Construction and transportation workers could experience changes in project volume in some States if funding shifts substantially. The Department of Transportation must implement the new formula and carry out annual apportionments, requiring administrative action but not new federal spending. The bill does not change tax law or create new federal mandates beyond changing allocation shares.
Read twice and referred to the Committee on Environment and Public Works.
Introduced March 3, 2026 by Rafael Edward Cruz · Last progress March 3, 2026
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Read twice and referred to the Committee on Environment and Public Works.
Introduced in Senate