The bill increases predictability and protects states with higher recent HTF contributions from sharp cuts, but does so by anchoring shares to FY2012 and HTF-based floors—benefiting some states while risking underfunding and equity issues for growing, smaller, or electrification-advancing states.
State governments retain a predictable baseline of highway funding by anchoring apportionments to FY2012 shares, reducing abrupt reallocations of historical funding levels.
State governments and taxpayers in states that pay more into the Highway Trust Fund are protected from deep apportionment cuts because apportionments are floored at 95% of a formula tied to recent HTF tax contributions.
State governments gain timing predictability for transportation planning and project delivery through a fixed annual October 1 apportionment schedule starting in FY2027.
States that have grown in population or infrastructure need since 2012 — including some urban and rural areas — risk receiving less funding relative to current needs because initial apportionment shares are anchored to FY2012 levels.
Smaller states or states with relatively low highway-user tax payments may still face reduced funding if their FY2012 share plus the 95% HTF-based floor is insufficient for present infrastructure demands.
Tying minimum shares to recent estimated HTF tax payments shifts allocation toward states with higher current fuel/tax contributions, disadvantaging states that have reduced fuel-tax receipts through electrification or that have greater non-user-funded needs (equity concern).
Based on analysis of 4 sections of legislative text.
Introduced March 3, 2026 by Rafael Edward Cruz · Last progress March 3, 2026
Revises the federal formula that divides several Federal-aid highway program funds among the States beginning in fiscal year 2027. Each State’s combined apportionment first uses its share of total apportionments from 2012, then is adjusted so no State receives less than 95% of a floor based on that State’s share of recent Highway Trust Fund tax payments by highway users. The Department of Transportation Secretary must calculate and issue the combined apportionments on October 1 of each fiscal year starting in FY2027, using the new method for the listed highway programs.