PolicyBrief
H.R. 3030
119th CongressApr 28th 2025
Highway Formula Fairness Act
IN COMMITTEE

The "Highway Formula Fairness Act" aims to update highway funding formulas to better account for population growth and ensure equitable distribution of funds nationwide.

Greg Stanton
D

Greg Stanton

Representative

AZ-4

LEGISLATION

Highway Funding Shift? New Bill Offers More Cash to Growing States, Mandates Fairness Study on Road Money Distribution

The "Highway Formula Fairness Act" is looking to change how federal dollars for our roads and bridges get divvied up. First off, it gives the Secretary of Transportation the green light – starting the fiscal year after the bill's enactment – to potentially boost highway funding for states where the population has significantly increased since the last census. This extra cash would be proportional to that growth. Secondly, and perhaps more broadly impactful, the bill orders a deep-dive study into the current highway funding formulas, aiming to modernize them. This study, which must land on Congress's desk with recommendations within 90 days of the bill passing, is tasked with figuring out a fairer way to slice the pie.

More Lanes or More Questions: The Population Bonus

Under Section 2, states that have seen a population boom could get a bump in their federal highway funds. This is in addition to what they already receive through existing formulas (like those outlined in 23 U.S.C. 104(c)(1)(A) and (B)). So, if your state's been welcoming a lot of new neighbors, this could mean more money for road repairs, new interchanges, or tackling that ever-growing congestion. However, the key word here is "discretionary." The Secretary of Transportation may increase this funding. While it's tied to population growth, the decision to actually allocate these extra funds isn't automatic, which could lead to questions about how these decisions are made and which growing states get prioritized. States with stagnant or declining populations, on the other hand, wouldn't be eligible for this particular boost.

Recalculating the Route: A National Road Funding Review

Section 3 of the bill mandates a "highway formula modernization study." Think of it as a major tune-up for the entire system that decides which states get how much federal cash for highways (specifically funds apportioned under 23 U.S.C. 104 (b) and (c)). The goal is to figure out if the current system is truly equitable. The study has to look at a few big things: how much folks in each state are kicking into the Highway Trust Fund through gas taxes and other contributions, and how well states are meeting national transportation goals, such as those related to safety, infrastructure condition, or even initiatives like carpool projects (as hinted at by the reference to 23 U.S.C. 101(b)(3)).

This isn't just a quick glance; the study needs to consult with state transportation departments and local government reps. It will also consider a laundry list of factors already embedded in highway law, like those influencing funding for metropolitan planning (23 U.S.C. 104(f)(2)), railway-highway crossing safety (23 U.S.C. 130(f)), bridge and tunnel inspection standards (23 U.S.C. 144(e)), and national performance measures (23 U.S.C. 150). The ultimate goal is to develop recommendations for a new method of dividing up funds, including what factors should count and how much weight they should carry. This could mean a significant shift for everyone, as a new formula might prioritize different aspects of transportation needs and contributions than the current one does.