The Balance the Highway Trust Fund Act would cap federal spending on highway and transit programs to match actual revenues collected into the Highway Trust Fund, rather than allowing spending to exceed incoming revenue. Beginning October 1, 2027, the bill would limit highway construction obligations to net highway receipts and mass transit obligations to net mass transit receipts, as estimated by the Treasury Department each year. The legislation would affect all states that receive federal highway and transit funding by potentially reducing the amount of money available for road and transit projects if trust fund revenues decline. The bill requires the Transportation Secretary to distribute available obligation authority proportionally among states based on authorized funding levels, with provisions to redistribute unused funds to states able to obligate them by August 1 of each fiscal year. This effectively requires the federal government to align highway and transit spending with actual fuel tax revenues rather than operating at a deficit through the trust fund.
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