S. 2917: Safety Funding Parity Adjustment Act of 2025

The Safety Funding Parity Adjustment Act of 2025 aims to adjust how federal highway safety funding is distributed, specifically relating to two programs: Section 402 and Section 405 funding. The bill establishes a process for the Secretary of Transportation to assess and potentially modify the funding allocation based on annual increases in these programs.

Funding Definitions

Key terms in the bill are defined as follows:

• Secretary: Refers to the Secretary of Transportation.
• Section 402 funding: Pertains to funds specifically allocated for highway safety initiatives, as outlined in Section 402 of Title 23 of the United States Code.
• Section 405 funding: Relates to funds from Section 405 of the same title, aimed at promoting the national highway safety improvement strategy.

Funding Adjustment Process

The bill stipulates that before distributing any federal funds for either Section 402 or Section 405 for a fiscal year, the Secretary must determine if there is an increase in both funding categories compared to the previous year.

Conditions for Adjustments

• Increase in Both Funding Areas: If funding has increased, the Secretary must check if the percentage increase in Section 402 funding is at least four times greater than that of Section 405 funding. If it is, no adjustments will be made.
• Insufficient Increase in Section 402 Funding: If the increase in Section 402 is less than four times that of Section 405, the Secretary must reduce Section 405 funding and proportionally transfer those funds to Section 402 until the desired ratio is achieved.
• Increase Only in Section 402: If only Section 402 funding has increased, no adjustments are made.
• No Increase in Either Funding: If neither Section has increased, then no adjustments occur.
• Only Increase in Section 405: If Section 405 sees an increase while Section 402 decreases, the bill requires adjustments to ensure Section 402 funding is properly funded by proportionately reducing Section 405 funding.

Distribution of Funds

After any necessary funding adjustments are made according to the guidelines above, the Secretary shall distribute the funds for both Section 402 and Section 405 for that fiscal year.

Effective Date

The provisions of this bill are set to take effect on October 1, 2026.

Relevant Companies