The Highway Formula Fairness Act modifies how federal highway funding is distributed to states. The bill changes the formula used to calculate state apportionments for eight major federal highway programs, shifting from a baseline based on 2012 funding levels to a system that accounts for how much each state contributes to the Highway Trust Fund through fuel taxes and other highway user fees. Under this new approach, each state would receive funding equal to at least 95 percent of its proportional contribution to the Highway Trust Fund, with the formula taking effect starting in fiscal year 2024. The bill applies to funding for major highway programs including the National Highway System, highway safety improvements, and other transportation initiatives. This change would primarily affect states that contribute more to the Highway Trust Fund than they currently receive under the existing apportionment system, while potentially reducing funding for states that have been receiving more than their contribution level.
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