Proposed Bill Threatens 10% Federal Highway Fund Cut Unless States Ban Speed Cameras by 2026

The Freedom from Automated Speed Enforcement Act of 2025 is straightforward: if your state wants its full federal highway funding starting October 1, 2026, it needs to completely ditch automated speed cameras that issue tickets without a police officer present. If even one city or county in a state uses these systems outside of very specific exceptions, that state loses 10% of its federal funding for key highway programs.

This isn't a suggestion; it's a financial hammer. The bill ties federal highway cash directly to local traffic enforcement policy. For a state Department of Transportation, losing 10% of those funds means a massive gap in the budget for road repairs, bridge maintenance, and new infrastructure projects. They’d have to choose between forcing every local jurisdiction to yank their cameras or finding billions in state funds to cover the federal shortfall. The Secretary of Transportation gets the job of auditing states to make sure they’re compliant, adding a layer of federal oversight to what has traditionally been a local safety decision.

The Camera Ban: Who Gets a Pass?

While the bill aims for a near-total ban on these automated systems, it carves out two narrow exceptions. States can still use speed cameras in school zones—but only during posted school hours. They can also be used in active construction work zones for the duration of the project. If you’re driving through a lane closure on the interstate, expect to see them. However, if the construction zone’s posted speed limit is reduced to less than 55 miles per hour, the state must put up clear signs warning drivers that a speed camera is being used. This means that while cameras are allowed in these specific, high-risk areas, they are effectively banned everywhere else—from city streets and residential areas to most major highways.

The Real-World Trade-Off

For drivers, the immediate benefit is obvious: fewer automated tickets. If you’ve ever gotten a surprise fine in the mail from a camera on your commute, this bill is good news. However, the cost of this relief could be high. Many communities rely on automated enforcement in high-accident areas where police presence is impossible 24/7. These cameras are often installed precisely because they slow down traffic and reduce severe crashes. If a city that uses cameras to protect a busy pedestrian corridor or a known accident black spot has to remove them to save the state’s highway budget, it removes a proven safety tool. We’re trading automated enforcement for a potential increase in dangerous speeding incidents in non-school, non-construction areas.

The Hidden Costs for States

The biggest impact lands squarely on State Departments of Transportation (DOTs). Imagine a state that relies on cameras in certain high-risk areas—say, around a major university campus or a busy industrial park—to keep speeds down. To avoid the 10% federal funding penalty, the state DOT must now force those local police departments to remove the cameras, potentially sacrificing local safety measures for statewide infrastructure funding. This bill effectively federalizes a local safety decision and forces states into a tough choice: lose money for road repairs or lose a tool for traffic safety.