S. 3786: Balance the Highway Trust Fund Act

This bill, titled the Balance the Highway Trust Fund Act, aims to regulate and limit the spending from the Highway Trust Fund, which funds federal-aid highway and highway safety construction programs. The main points of the bill are as follows:

Obligation Limitation

The bill establishes that, for each fiscal year, the total spending obligations for federal-aid highway and highway safety construction programs cannot exceed the revenue generated for that year. The revenue will be estimated by the Secretary of the Treasury.

Distribution of Funds

The Secretary of Transportation is responsible for the distribution of the available funds as follows:

• Certain administrative expenses and programs will not receive funding from the Highway Trust Fund.
• Unobligated balances from previous fiscal years will also affect the distribution of available funds for the current year.
• Allocation will be adjusted based on the ability of states to obligate funds effectively.

Redistribution of Unused Funds

If states do not use their allocated funds within the designated fiscal year, the Secretary will redistribute these unused funds to other states that can make use of them, focusing on those with high balances of unobligated funds.

Applicability to Research Programs

The limitations set by this act will also apply to contract authorities for transportation research programs. However, certain obligations related to research will have a designated availability of four years, allowing for flexibility in funding commitments.

Additional Fund Distribution Requirements

Within 30 days after distributing obligation authority, the Secretary must allocate any federal-aid highway funds that are not otherwise earmarked for state use and are not subject to spending caps.

Mass Transit Account

The bill also imposes similar limitations on obligations from the Mass Transit Account. The total of all obligations from this account cannot exceed the estimated revenue for that fiscal year.

Effective Date

The provisions outlined in this bill will take effect on October 1, 2027.

Relevant Companies

• CSX - A major North American transportation company that may see changes in funding for infrastructure development.
• UNP - Union Pacific Corporation, which could be affected due to its involvement in transportation services that depend on highway infrastructure.
• FLR - Foster Wheeler Corp. engages in engineering and construction services that may rely on highway funding for projects.