Congress shifts highway money from old formula to tax-contribution model
H.R. 7776 — Highway Formula Fairness Act · Filed by Chip Roy (R-TX) · 2 cosponsors · Introduced Mar 3, 2026 · Referred to committee
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What it does
This bill changes how federal highway funding is distributed to states, shifting from a formula based on 2012 historical allocations to one based on each state's current contribution to the Highway Trust Fund (i.e., how much gas tax and vehicle-related taxes that state's residents pay in). States are guaranteed to receive at least 95% of their proportional share based on current tax contributions, ensuring no state loses funding compared to the new formula.
Why we flagged it
The bill's core function is to mechanically alter the federal highway apportionment formula, shifting from historical 2012 baselines to current tax-contribution-based allocation. This is a straightforward policy change with distributional consequences, not a hidden rider or vanity provision.
What the text implies
- States with declining populations or slower economic growth may see reduced highway funding, potentially affecting rural infrastructure investment and economic development in those regions.
- The shift to tax-contribution-based allocation may incentivize states to increase fuel taxes or vehicle-related fees to secure larger federal apportionments, creating a potential fiscal arms race among states.
The full analysis lists 4 implications of this text.
Who stands to gain
trucking and logistics companies in high-tax-contribution states; construction and engineering firms in states gaining highway funding; transportation infrastructure suppliers