Highway Formula Fairness Act
Summary
What This Bill Does
The Highway Formula Fairness Act replaces the calculation for combined state apportionments across eight federal highway and transportation-planning programs beginning in fiscal year 2026.
Each state's initial amount equals the total amount available multiplied by the state's share of the corresponding fiscal-2012 apportionments. The initial amounts must then be adjusted so each state receives at least 95 percent of its applicable percentage of the total national amount.
The applicable percentage is the state's estimated highway-user tax payments into the Highway Trust Fund's highway account for the most recent year with data, divided by comparable payments from all states. The Transportation Secretary apportions the authorized amount on October 1 each fiscal year.
The bill changes distribution, not the total authorized pot or highway-user tax rates. Because the total remains fixed, increases needed to satisfy the 95-percent floor imply lower relative allocations elsewhere, although the exact losing states depend on annual tax data and formula implementation.
Who Benefits and How
States whose highway users contribute a larger trust-fund share than their baseline allocation gain a statutory return floor. State transportation departments in those states receive more predictable formula funding. Drivers and freight users there may see more highway, bridge, safety, congestion, resilience, and planning investment.
Who Bears the Burden and How
States receiving more than their relative contribution-based share may receive less from the fixed total after adjustment. Their transportation programs and contractors face funding risk. DOT must calculate state tax shares, reconcile them with 2012 apportionments, perform adjustments, and issue annual October apportionments. Formula volatility may rise as estimated tax contributions change.
Key Provisions
- Replaces the combined state apportionment formula from fiscal 2026.
- Establishes a fiscal-2012 share as the initial allocation.
- Requires a 95-percent return floor tied to tax contributions.
- Uses the latest available highway-user tax estimates.
- Excludes the Mass Transit Account from the contribution measure.
- Covers eight named highway and planning programs.
- Requires annual October 1 apportionment.
- Preserves the fixed total and existing tax rates.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Replaces the federal-aid highway apportionment formula from fiscal 2026 onward with an initial allocation based on each state's fiscal-2012 share and an adjustment guaranteeing at least 95 percent of the state's current share of Highway Trust Fund highway-user tax contributions across eight named programs.
Key Policy Areas
Federal Highway Funding, Highway Trust Fund, State Apportionment Formula, Transportation Tax Equity, Surface Transportation Programs
Primary Purpose
Replaces the federal-aid highway apportionment formula from fiscal 2026 onward with an initial allocation based on each state's fiscal-2012 share and an adjustment guaranteeing at least 95 percent of the state's current share of Highway Trust Fund highway-user tax contributions across eight named programs.
Policy Domains
Section 2 state highway apportionment adjustment
Identified Gains
- States below the 95-percent return floor
- State DOTs in high-contribution jurisdictions
- Highway users in under-return states
- Freight carriers using beneficiary-state roads
- Contractors serving states gaining apportionments
- Transportation planners receiving formula certainty
Identified Costs
- States losing relative formula shares
- State DOTs above the contribution floor
- Contractors serving states losing apportionments
- Federal highway formula analysts
- DOT staff estimating state tax payments
- Programs exposed to annual formula volatility
- Transit interests excluded from the tax denominator
Sponsors
Legislative Progress
In CommitteeReferred to the Subcommittee on Highways and Transit.
Introduced in House
Referred to the House Committee on Transportation and Infrastructure.
Mr. Roy (for himself, Mr. Weber of Texas, and Mr. …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
State DOTs above the contribution floor, State DOTs in high-contribution jurisdictions, States below the 95-percent return floor
Positive-direction: State DOTs in high-contribution jurisdictions, States below the 95-percent return floor, Transportation planners receiving formula certainty
Negative-direction: State DOTs above the contribution floor, States losing relative formula shares
Freight carriers using beneficiary-state roads, Highway users in under-return states, Programs exposed to annual formula volatility
Positive-direction: Freight carriers using beneficiary-state roads, Highway users in under-return states
Negative-direction: Programs exposed to annual formula volatility
Contractors serving states gaining apportionments, Contractors serving states losing apportionments
Positive-direction: Contractors serving states gaining apportionments
Negative-direction: Contractors serving states losing apportionments
DOT staff estimating state tax payments, Federal highway formula analysts
Transit interests excluded from the tax denominator
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "taxpayer"
- → Highway user paying trust-fund taxes
- "recipient"
- → State receiving federal highway apportionments
- "contractor"
- → Transportation contractor dependent on state apportionments
- "state_agency"
- → State department of transportation
- "administrator"
- → Secretary of Transportation
Note: {'scope_ids': ['highway_contribution_apportionment'], 'description': 'The formula reallocates a fixed authorized total rather than increasing national highway funds or changing tax rates; winning and losing states depend on annual contribution data and implementation of the adjustment.'}
Key Definitions
Terms defined in this bill
The minimum combined apportionment equal to 95 percent of the state's applicable percentage times the national total.
The national apportionment total multiplied by the state's share of fiscal-2012 apportionments.
The state's share of estimated national highway-account user-tax payments for the latest available year.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology