Sponsors (4)
The bill increases predictability and rewards states that contribute more to the Highway Trust Fund by blending historic and recent payment measures and guaranteeing minimums, but that reallocation can reduce funding and planning certainty for lower-paying states and communities that may need more investment.
All States receive a predictable minimum (at least 95%) of their formula apportionment tied to current Highway Trust Fund tax payments, reducing sudden funding drops and helping states avoid unexpected budget shortfalls.
States' apportionments are calculated using both historic (FY2012) shares and recent highway-user tax contributions, which directs more funding toward states that contribute more to the Highway Trust Fund.
Sets a fixed annual apportionment date (October 1), giving state transportation agencies clearer timing for planning and budgeting.
States with relatively low FY2012 shares may see reduced funding compared with more recent formulas, meaning some states — and the communities they serve — could lose transportation investment.
Linking minimums to states' estimated Highway Trust Fund tax payments favors states with higher fuel and highway-user tax contributions, which can divert funds away from lower-paying states that may have greater need, disproportionately affecting low-income and rural communities.
Changing the apportionment formula can complicate multi-year project planning for states that experience funding decreases, potentially delaying road and bridge improvements and affecting construction and transportation workers.
Based on analysis of 4 sections of legislative text.
Changes the annual formula for apportioning federal highway funds starting FY2027, using FY2012 shares and a floor tied to each state's Highway Trust Fund tax-payment share.
Introduced March 3, 2026 by Rafael Edward Cruz · Last progress March 3, 2026
Rewrites how federal highway formula funds are divided among states starting in fiscal year 2027. It sets an initial state share equal to each state's share of FY2012 apportionments, then guarantees each state's combined apportionment for a set of highway programs is at least 95% of a floor tied to that state's share of recent Highway Trust Fund tax contributions (excluding the Mass Transit Account). The Department of Transportation must apply this calculation and apportion funds each October 1 of the applicable fiscal year.