H.R. 7776: Highway Formula Fairness Act

This bill, known as the Highway Formula Fairness Act, aims to modify how federal highway funding is distributed to states. Specifically, it adjusts the method used to calculate state apportionments for various federal highway programs.

Key Provisions

• Changes to Calculation: The bill revises the calculation for determining the amount of federal highway funding each state receives starting in fiscal year 2026. It replaces the existing method with a new approach based on past funding levels.
• Initial Funding Amount: Each state's initial funding amount will be calculated by taking the total amount available for highway programs and distributing it based on the proportion of funds each state received back in fiscal year 2012.
• Minimum Funding Guarantee: States will receive a guaranteed minimum amount of funding, which will be set at no less than 95% of an applicable percentage. This percentage is derived from the state's estimated tax payments into the Highway Trust Fund compared to total tax payments from all states.
• Annual Apportionment: Each fiscal year, the Secretary of Transportation will apportion the funds according to the revised calculation method outlined in the bill.

Implications

By modifying these formulas, the bill seeks to create a more equitable distribution of federal highway funds among the states. The changes are intended to ensure that states contribute a fair share to the Highway Trust Fund receive adequate funding based on their contributions and historical funding levels.

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