Safety Funding Parity Adjustment Act of 2025

## Summary The Safety Funding Parity Adjustment Act of 2025 establishes a formula for the U.S. Secretary of Transportation to adjust federal highway safety funding between two programs—Section 402 and Section 405 of Title 23—based on annual funding changes. The bill aims to ensure that increases in Section 402 funding (which supports state highway safety initiatives like impaired driving prevention) are proportionally prioritized over Section 405 funding (which supports other safety programs, such as occupant protection and motorcycle safety). If both programs see funding increases in a fiscal year, the Secretary must adjust funds so that the percentage increase in Section 402 funding is at least four times that of Section 405. If Section 405 funding rises while Section 402 funding falls, the Secretary must transfer funds to restore Section 402 to its prior level, if possible. The law takes effect in fiscal year 2027. ## Key Points - Funding Parity Rule: Requires Section 402 funding increases to be at least four times larger than Section 405 increases when both rise in a fiscal year. - Adjustment Process: If the "4x rule" isn’t met, the Secretary must proportionally reduce Section 405 funds and add them to Section 402. - Special Transfers: If Section 405 increases but Section 402 decreases, funds are shifted from 405 to 402 to restore 402’s prior-year level. - Exemptions: No adjustments are made if neither program’s funding increases or if only Section 402 sees a rise. - Effective Date: The bill applies starting October 1, 2026, affecting fiscal year 2027 funding distributions. ## Impact Areas - State Highway Safety Agencies: May receive more or less funding depending on federal adjustments. - Federal Highway Administration (FHWA): Gains structured authority to rebalance safety funds annually. - Road Safety Programs: Section 402 programs (e.g., DUI prevention) could see boosted funding at the expense of Section 405 initiatives (e.g., seat belt campaigns). - Budget Predictability: Creates a mechanical adjustment process, potentially reducing flexibility for lawmakers to set funding levels. - Transportation Policy Priorities: Emphasizes Section 402 as a higher priority during funding growth periods.