Highway Funding Transferability Improvement Act
The Highway Funding Transferability Improvement Act is a narrow bill that changes how much Federal-aid highway funds states can transfer to other authorized programs. Specifically, it amends 23 U.S.C. §126(a) to increase the transfer cap from 50 percent to 75 percent. The goal is to give states greater flexibility to repurpose federal highway money to meet evolving transportation needs while keeping the overall funding framework intact. Introduced in the 119th Congress on August 8, 2025, by Representatives Hageman (along with Titus) and referred to the Committee on Transportation and Infrastructure, the bill does not add new funding or create new programs. Instead, it broadens the flexibility already provided under the transferability provision of the Federal-aid highway program.
Key Points
- 1The bill amends 23 U.S.C. §126(a) to raise the transferability cap from 50% to 75%.
- 2The change increases the maximum share of apportioned Federal-aid highway funds a state may transfer to other eligible uses or programs.
- 3It retains the existing statutory framework governing transfers; the public policy aim is to give states more discretion to respond to transportation needs.
- 4The bill does not alter total funding levels or create new funding streams.
- 5There are no new reporting or oversight provisions in the text provided; governance remains subject to current rules for transfers.