What This Bill Does
This bill requires the Secretary of Transportation to study how the federal government distributes highway funding to states. The Secretary must examine whether the current method fairly distributes money based on what states and their residents pay into highway funds. The Secretary must then recommend a new way to distribute these funds.
Who It Affects
- The Secretary of Transportation
- State departments of transportation
- Local governments and metropolitan planning organizations (groups that plan transportation projects for cities and regions)
- Congress
Key Provisions
- The Secretary must complete a highway formula modernization study within 2 years of the bill becoming law and assess whether the current funding distribution method is fair based on tax payments from highway users and general treasury contributions (Sec. 2(a) and 2(b)).
- The Secretary must consider specific factors from existing law when doing this assessment, including data availability and accuracy needed for calculating how funds are divided (Sec. 2(c)).
- The Secretary must work with state transportation departments and local government representatives to develop recommendations for a new funding distribution method, including which factors to use and how much weight to give each factor (Sec. 2(d)).
- The Secretary must submit yearly progress reports to Congress while conducting the study and a final report with recommendations when the study is complete (Sec. 2(e)).
What Changes
If this bill becomes law, the federal government will study and potentially change how it divides highway funding among states. This could result in some states receiving more federal highway money and others receiving less, depending on what the new formula recommends.
Important Definitions
- Highway Trust Fund: A fund that collects taxes from highway users and receives contributions from the general treasury
- Apportionment: The method of dividing and distributing funds
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 352
To require the Secretary of Transportation to carry out a highway formula
modernization study, and for other purposes.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 9, 2023
Mr. KELLY (for himself and Mr. CRUZ) introduced the following bill; which
was read twice and referred to the Committee on Environment and Public
Works
A BILL
To require the Secretary of Transportation to carry out
a highway formula modernization study, and for other
purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Highway Formula
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Modernization Act of 2023’’.
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SEC. 2. HIGHWAY FORMULA MODERNIZATION STUDY.
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(a) IN GENERAL.—Not later than 2 years after the
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date of enactment of this Act, the Secretary of Transpor-
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tation (referred to in this section as the ‘‘Secretary’’), in
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•S 352 IS
consultation with State departments of transportation and
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representatives of local governments (including metropoli-
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tan planning organizations), shall conduct a highway for-
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mula modernization study to assess the method and data
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used to apportion Federal-aid highway funds under sub-
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sections (b) and (c) of section 104 of title 23, United
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States Code, and issue recommendations relating to that
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method and data.
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(b) ASSESSMENT.—The highway formula moderniza-
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tion study required under subsection (a) shall include an
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assessment of, based on the latest available data, whether
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the apportionment method described in that subsection re-
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sults in—
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(1) an equitable distribution of funds based on
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the estimated tax payments attributable to—
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(A) highway users in the State that are
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paid into the Highway Trust Fund; and
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(B) individuals in the State that are paid
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to the Treasury, based on contributions to the
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Highway Trust Fund from the general fund of
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the Treasury; and
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(2) the achievement of the goals described in
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section 101(b)(3) of title 23, United States Code.
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(c) CONSIDERATIONS.—In the assessment under sub-
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section (b), the Secretary shall consider the following:
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•S 352 IS
(1) The factors described in sections 104(b),
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104(f)(2), 104(h)(2), 130(f), and 144(e) of title 23,
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United States Code, as in effect on the date of en-
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actment of SAFETEA–LU (Public Law 109–59;
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119 Stat. 1144).
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(2) The availability and accuracy of data nec-
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essary to calculate formula apportionments under
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the factors described in paragraph (1).
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(3) The measures established under section 150
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of title 23, United States Code, and whether those
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measures are appropriate for consideration as for-
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mula apportionment factors.
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(4) Any other factors that the Secretary deter-
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mines are appropriate.
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(d) RECOMMENDATIONS.—The Secretary, in con-
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sultation with State departments of transportation and
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representatives of local governments (including metropoli-
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tan planning organizations), shall develop recommenda-
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tions on a new apportionment method, including—
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(1) the factors recommended to be included in
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the new apportionment method;
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(2) the weighting recommended to be applied to
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the factors recommended under paragraph (1); and
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(3) any other recommendations to ensure that
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the new apportionment method best achieves an eq-
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•S 352 IS
uitable distribution of funds described under sub-
1
section (b)(1) and the goals described in subsection
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(b)(2).
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(e) REPORTS TO CONGRESS.—
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(1) INTERIM
REPORTS.—Not less frequently
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than annually during the period during which the
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Secretary is carrying out the study under subsection
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(a), the Secretary shall submit to Congress an in-
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terim report on the progress of the study.
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(2) FINAL
REPORT.—On completion of the
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study under subsection (a), the Secretary shall sub-
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mit to Congress a final report on the results of the
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study, including the recommendations under sub-
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section (d).
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