Highway Formula Fairness Act

Bill Number

H.R. 3030

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Transportation and Public Works

Status

Introduced

Latest Action

2025-04-28: Referred to the Subcommittee on Highways and Transit.

Last Updated

2025-09-18T08:07:18Z

AI-Generated Summary

Purpose of the Legislation

The Highway Formula Fairness Act (H.R. 3030) aims to update the federal highway funding system to better reflect state population growth and ensure a more equitable distribution of funds. It addresses potential imbalances in how highway money is allocated by allowing extra funding for growing states and requiring a review of the overall funding formula.

Key Provisions

• Discretionary Funding Increase for Population Growth: The U.S. Secretary of Transportation can provide additional federal-aid highway funds to states that have experienced population increases since the last U.S. Census (conducted every 10 years). This extra funding would be distributed proportionally based on each state's relative population growth, as determined by the Secretary.
• Highway Formula Modernization Study: The Secretary of Transportation must conduct a study, in consultation with state transportation departments and local government representatives (including metropolitan planning organizations), to evaluate the current method for dividing federal highway funds among states.
• The study assesses whether the current formula fairly distributes funds based on taxes paid into the Highway Trust Fund (a dedicated fund for highway and transit projects) by highway users and general Treasury contributions from state residents.
• It also checks if the formula supports national goals like improving highway safety, maintenance, and economic efficiency (as outlined in existing law).
• Study Considerations and Recommendations:
• Reviews factors like lane miles, vehicle miles traveled, and bridge conditions from prior laws.
• Examines data availability and accuracy for these factors.
• Considers using performance measures (e.g., safety and pavement quality targets) in funding decisions.
• Develops suggestions for a new formula, including recommended factors, their relative importance (weighting), and ways to achieve fairer funding.
• Reporting Requirement: The Secretary must submit a report with the study's findings and recommendations to Congress within 90 days of the bill's enactment.
• Applicability: The funding changes take effect in the first fiscal year after enactment; the study is due shortly after.

Significant Changes to Existing Law

• Amends Section 104(c)(1) of Title 23, United States Code (which governs how federal highway funds are apportioned, or divided, among states) by removing an outdated clause and adding the new discretionary population-based funding option. This introduces flexibility not previously available, allowing the Secretary to adjust allocations beyond fixed formulas.
• Mandates a comprehensive review of the apportionment process under Sections 104(b) and 104(c), which has not been fundamentally updated since major transportation laws like SAFETEA-LU in 2005. This could lead to future legislative changes based on the study's recommendations.

Potential Impacts

• On Government Agencies: The Department of Transportation (DOT) gains authority to allocate extra funds discretionarily, potentially increasing administrative workload for monitoring population data and conducting the study. State departments of transportation may receive more funds for projects like road expansions in growing areas.
• On Citizens: Residents in states with rapid population growth (e.g., Sun Belt states like Texas or Arizona) could benefit from improved highways, reduced congestion, and better infrastructure to support economic and population needs. However, slower-growing states might see relatively less funding, potentially straining their existing roads.
• On International Relations: No direct impacts, as the bill focuses on domestic highway funding.

Main Stakeholders Affected

• States with Population Growth: Primary beneficiaries, such as those in the South and West, who could access additional funds for infrastructure.
• State and Local Governments: Including departments of transportation and metropolitan planning organizations, which will consult on the study and implement any new funding.
• Highway Users and Taxpayers: Individuals and businesses contributing to the Highway Trust Fund through gas taxes and other fees, who may see more equitable returns on their payments.
• Federal Government: Congress and the DOT, responsible for overseeing the study, recommendations, and fund distribution.

Notable Legal, Constitutional, or Political Implications

• Legal: Enhances the Secretary's discretionary power under Title 23, which could invite legal challenges if funding decisions are seen as arbitrary (though proportional to census data, a reliable federal source). The 90-day reporting deadline is unusually short for a comprehensive study, potentially limiting depth but ensuring quick action.
• Constitutional: Aligns with Congress's authority under the Commerce Clause to regulate interstate highways and spend for the general welfare, promoting equitable resource distribution without raising federalism concerns.
• Political: May spark debates over "fair share" funding in Congress, favoring growing states and addressing criticisms that the current formula disadvantages them (e.g., based on outdated metrics like vehicle miles traveled). The study could influence future transportation bills, potentially leading to broader reforms in how the $50+ billion annual Highway Trust Fund is divided.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Stanton, Greg [D-AZ-4]

Cosponsors (2)

Rep. Gonzales, Tony [R-TX-23], Rep. Neguse, Joe [D-CO-2]

Recent Actions

• 2025-04-28: Referred to the Subcommittee on Highways and Transit.
• 2025-04-28: Referred to the House Committee on Transportation and Infrastructure.
• 2025-04-28: Introduced in House
• 2025-04-28: Introduced in House

Bill Versions

• Highway Formula Fairness Act — issued 2025-04-28 — PDF (5 pages)