Sponsors (2)
The bill gives states and localities much more flexibility to prioritize local and multimodal projects and speed safety-related repairs, but at the risk of reduced routine highway maintenance, unequal distribution of benefits favoring wealthier or more capable jurisdictions, and potential increased costs for local taxpayers.
State and local governments can shift up to 75% of apportioned federal highway funds to higher-priority local projects, giving them much greater flexibility to address urgent infrastructure needs.
Freed federal dollars can accelerate non-highway transportation projects (e.g., multimodal or transit), enabling more and faster investment in alternatives to traditional highway spending.
Reallocations can enable faster repair or upgrades of critical roads and bridges when local safety or congestion priorities are addressed sooner.
Drivers and homeowners could see worse road conditions if more formula funds are diverted away from routine highway maintenance.
Wealthier or more administratively capable states may capture disproportionate benefits, leaving rural or less-capable states with reduced predictable highway funding and greater inequities.
Redirecting federal highway dollars could create budget gaps that shift costs to local taxpayers if states or localities must cover reduced federal spending to maintain highway networks.
Based on analysis of 2 sections of legislative text.
Increases the cap allowing states to transfer up to 75% (from 50%) of certain apportioned Federal-aid highway funds to other eligible programs or uses.
Official title: Amend title 23, United States Code, to provide for increased transferability of Federal-aid highway funds.
Introduced May 13, 2025 by Kevin Cramer · Last progress May 13, 2025
Raises the share of Federal-aid highway funds that states may transfer to other eligible transportation programs from 50% to 75%. The change expands state flexibility in using apportioned highway dollars for other authorized purposes under existing law, potentially shifting more highway formula funding into projects or programs that states deem higher priority. The bill only changes the statutory transferability cap in one provision of Title 23 and contains a short title; it does not create new programs, appropriate money, or specify an effective date within the text provided.