States gain flexibility to spend more highway money on transit
H.R. 4926 — Highway Funding Transferability Improvement Act · Filed by Harriet Hageman (R-WY) · 4 cosponsors · Introduced Aug 8, 2025 · Referred to committee
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What it does
This bill increases the share of federal highway funds that states can redirect to non-highway transportation projects (transit, bike, pedestrian infrastructure) from 50% to 75%. States gain more flexibility to spend federal road money on other transportation modes without losing it.
Why we flagged it
The bill is a straightforward technical amendment to federal highway law that increases state discretion over fund allocation. It is a procedural/structural change to existing grant rules, not a new program or appropriation.
What the text implies
- States with strong transit advocacy or urban centers may see increased federal support for non-highway modes; rural or highway-dependent states may experience relative disadvantage if they do not redirect funds.
- The change may incentivize states to develop transit/active-transportation plans to capture the newly available federal dollars, potentially accelerating modal shift in transportation planning.
The full analysis lists 3 implications of this text.
Who stands to gain
public transit agencies; municipal governments with transit systems; active transportation (bike/pedestrian) infrastructure providers