The Highway Formula Fairness Act modifies how federal highway funding is distributed to states starting in fiscal year 2027. Currently, the bill would change the formula used to apportion money for eight major federal highway programs—including the national highway performance program, surface transportation block grants, and highway safety improvements—to be based partially on how much highway-related taxes each state contributes to the federal Highway Trust Fund. Under the new formula, each state would receive funding equal to at least 95 percent of its proportional share of highway user tax contributions, ensuring that states paying more in fuel taxes and vehicle-related fees receive roughly equivalent funding. The bill affects all states and the Department of Transportation, which is responsible for implementing the apportionment on October 1st of each fiscal year. No new federal spending is authorized; the legislation simply reallocates existing highway funding among states based on the revised formula.
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