Federal

Highway Formula Fairness Act

Source: Congress.gov · 764 words in original text

What This Bill Does

This bill modifies how federal highway program funds are divided among states. Starting in fiscal year 2024, it changes the formula for distributing money across eight federal highway programs to ensure each state receives a minimum amount based on highway taxes paid by its residents.

Who It Affects

States receiving federal highway funding. The Secretary of Transportation (the federal official overseeing transportation programs) who distributes the money. Highway users in each state whose tax payments are counted in the calculation.

Key Provisions

• Each state's share of highway funding starting in fiscal year 2024 is calculated based on the proportion of apportionments that state received in fiscal year 2012, multiplied by the total amount available for distribution (Sec. 2) • Every state's total funding must be adjusted to equal at least 95 percent of that state's applicable percentage multiplied by the total available funds, where applicable percentage is calculated by dividing the state's highway user tax payments into the Highway Trust Fund by all states' combined highway user tax payments (Sec. 2) • The Secretary of Transportation must apportion highway funding on October 1 of each fiscal year starting in fiscal year 2024 following these calculation rules across eight programs: national highway performance, surface transportation block grant, highway safety improvement, congestion mitigation and air quality improvement, national highway freight, carbon reduction, PROTECT program subsection (c), and section 134 programs (Sec. 2)

What Changes

The current method for dividing highway funding among states is replaced with a new calculation system beginning in fiscal year 2024. States are guaranteed a minimum funding level tied to how much their residents pay in highway-related taxes rather than other formulas that may have been used previously.

Important Definitions

Highway Trust Fund (other than the Mass Transit Account): Not specified in bill text. Applicable percentage: The percentage equal to a state's estimated highway user tax payments divided by all states' combined estimated highway user tax payments for the most recent fiscal year with available data (Sec. 2).

Effective Date

Fiscal year 2024 and each fiscal year thereafter (Sec. 2).

II 118TH CONGRESS 1ST SESSION S. 345 To modify a provision relating to adjustments of certain State apportionments for Federal highway programs, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY 9, 2023 Mr. CRUZ (for himself, Mr. KELLY, and Mr. CORNYN) introduced the fol- lowing bill; which was read twice and referred to the Committee on Envi- ronment and Public Works A BILL To modify a provision relating to adjustments of certain State apportionments for Federal highway programs, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Highway Formula 4 Fairness Act’’. 5 VerDate Sep 11 2014 20:45 Feb 23, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S345.IS S345 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 345 IS SEC. 2. ADJUSTMENTS TO CERTAIN STATE APPORTION- 1 MENT AMOUNTS. 2 Section 104 of title 23, United States Code, is 3 amended by striking subsection (c) and inserting the fol- 4 lowing: 5 ‘‘(c) CALCULATION OF AMOUNTS.— 6 ‘‘(1) STATE SHARE.—For fiscal year 2024 and 7 each fiscal year thereafter, the amount for each 8 State of combined apportionments for the national 9 highway performance program under section 119, 10 the surface transportation block grant program 11 under section 133, the highway safety improvement 12 program under section 148, the congestion mitiga- 13 tion and air quality improvement program under 14 section 149, the national highway freight program 15 under section 167, the carbon reduction program 16 under section 175, to carry out subsection (c) of the 17 PROTECT program under section 176, and to carry 18 out section 134 shall be determined as follows: 19 ‘‘(A) INITIAL AMOUNT.—The initial 20 amount for each State shall be determined by 21 multiplying the total amount available for ap- 22 portionment by the share for each State, which 23 shall be equal to the proportion that— 24 VerDate Sep 11 2014 20:45 Feb 23, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S345.IS S345 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 345 IS ‘‘(i) the amount of apportionments 1 that the State received for fiscal year 2 2012; bears to 3 ‘‘(ii) the amount of those apportion- 4 ments received by all States for that fiscal 5 year. 6 ‘‘(B) ADJUSTMENTS TO AMOUNTS.— 7 ‘‘(i) IN GENERAL.—The initial 8 amounts resulting from the calculation 9 under subparagraph (A) shall be adjusted 10 to ensure that, for each State, the amount 11 of combined apportionments for the pro- 12 grams shall not be less than an amount 13 equal to— 14 ‘‘(I) 95 percent of the applicable 15 percentage; multiplied by 16 ‘‘(II) the total amount of funds 17 available for apportionment. 18 ‘‘(ii) APPLICABLE PERCENTAGE.—For 19 purposes of this subparagraph, the applica- 20 ble percentage shall be an amount, ex- 21 pressed as a percentage, equal to the 22 quotient of— 23 ‘‘(I) the estimated tax payments 24 attributable to highway users in the 25 VerDate Sep 11 2014 20:45 Feb 23, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S345.IS S345 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •S 345 IS State that were paid into the Highway 1 Trust Fund (other than the Mass 2 Transit Account) for the most recent 3 fiscal year for which data are avail- 4 able; divided by 5 ‘‘(II) the estimated total tax pay- 6 ments attributable to users in all 7 States that were paid into the High- 8 way Trust Fund (other than the Mass 9 Transit Account) for that fiscal year. 10 ‘‘(2) STATE APPORTIONMENT.—On October 1 11 of each fiscal year described in paragraph (1), the 12 Secretary shall apportion the sum authorized to be 13 appropriated for expenditure on the national high- 14 way performance program under section 119, the 15 surface transportation block grant program under 16 section 133, the highway safety improvement pro- 17 gram under section 148, the congestion mitigation 18 and air quality improvement program under section 19 149, the national highway freight program under 20 section 167, the carbon reduction program under 21 section 175, to carry out subsection (c) of the PRO- 22 TECT program under section 176, and to carry out 23 section 134 in accordance with paragraph (1).’’. 24 Æ VerDate Sep 11 2014 20:45 Feb 23, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S345.IS S345 pbinns on DSKJLVW7X2PROD with $$_JOB

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.