Highway Formula Fairness Act
The Highway Formula Fairness Act would add two main changes to federal highway funding. First, it creates a discretionary, population-growth-based supplemental funding mechanism for states. States that have grown in population since the last decennial census could receive an additional funding amount, allocated in proportion to their growth, at the Secretary of Transportation’s discretion. This supplement would sit on top of the existing formula amounts and would begin in the first fiscal year after enactment. Second, the bill requires a comprehensive highway formula modernization study. The study would evaluate how federal highway funds are apportioned under current law, consider equity and data quality, involve state and local stakeholders (including metropolitan planning organizations), and result in recommendations for a redesigned apportionment method. A report detailing the study and recommendations would be due to Congress within 90 days of enactment.
Key Points
- 1Creates a discretionary population-growth-based supplement to federal highway funding for states that have grown since the last decennial census, allocated proportionally to growth as determined by the Secretary.
- 2The discretionary increase is added “in addition to” existing formula amounts, and applies starting with the first fiscal year after enactment.
- 3Requires a Highway Formula Modernization Study to assess the data and methods used to apportion funds under current law (sections 104(b) and (c)).
- 4The study must evaluate equity in fund distribution, including tax payments by highway users and contributions from the general fund, and alignment with the goals of title 23.
- 5The Secretary must consult with state departments of transportation and local governments (including MPOs) and deliver a recommendations report within 90 days of enactment, proposing a new apportionment method and weighting factors.