HB7776, titled the Highway Formula Fairness Act, would revise how certain federal highway program funds are apportioned to states beginning in fiscal year 2026. The bill amends section 104 of title 23, U.S. Code, to replace the current subsection governing state apportionment adjustments and to establish a new formula for combined apportionments under several highway-related programs, including safety, congestion mitigation, bridge, transportation alternatives, metropolitan planning, and related programs.
Under the bill, each state’s initial share would be based on that state’s share of fiscal year 2012 apportionments for the covered programs. Those initial amounts would then be adjusted so that no state receives less than a floor tied to 95 percent of its “applicable percentage,” which is calculated from the state’s estimated highway-user tax payments into the Highway Trust Fund relative to all states. The Secretary of Transportation would apportion the covered funds each October 1 in accordance with this formula.
Impact
The bill would change federal highway funding distribution rules in Title 23 of the U.S. Code, affecting how the Department of Transportation allocates apportionments among states for several core highway and transit-related programs. It would not create a new program or authorize a new funding stream, but it would alter the formula used to divide existing authorized funds, potentially shifting dollars among states based on a blend of historical 2012 apportionments and highway-user tax contributions to the Highway Trust Fund.
Sentiment
Based on the bill text and the limited context available, the measure appears to be framed as a fairness and formula-adjustment proposal rather than a partisan policy change. The sponsors from different states suggest an effort to build bipartisan support around state equity in highway funding. No committee transcript or vote record is available here, so there is no documented floor or committee sentiment beyond the bill’s title and structure, which emphasize fairness and redistribution of apportionments.
Contention
The likely point of contention is the formula itself: states that benefit under the current apportionment system or from the 2012 baseline may resist changes that could reduce their share, while states that contribute more to the Highway Trust Fund may support a formula that better reflects user payments. Another possible dispute is whether tying apportionments to historical 2012 funding and estimated tax payments is the best way to measure fairness, since it blends legacy allocations with revenue-based metrics and could produce winners and losers among states.
An act to add Chapter 10 (commencing with Section 898) to Division 1 of the Streets and Highways Code, relating to state highways, and making an appropriation therefor. highways.