Highway Formula Fairness Act

This bill, known as the Highway Formula Fairness Act, changes how federal highway funds are distributed to states starting in fiscal year 2026. It requires that each state receive at least 95 percent of the funds it would normally get based on its share of highway user taxes paid into the Highway Trust Fund. The law uses historical data from 2012 to calculate each state's initial funding share, then adjusts those amounts to ensure states meet the minimum threshold. This change directly affects state transportation budgets and the allocation of federal highway program money.