States gain flexibility to spend highway money on transit and bikes
S. 1733 — Highway Funding Transferability Improvement Act · Filed by Kevin Cramer (R-ND) · 1 cosponsor · Introduced May 13, 2025 · Hearing held
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What it does
This bill increases the share of federal highway funding that states can redirect to non-highway transportation projects (transit, bike lanes, pedestrian infrastructure) from 50% to 75%. States gain flexibility to use federal road money for broader mobility purposes; the change does not reduce total federal highway spending, only expands what states can do with it.
Why we flagged it
The bill's sole operative mechanism is a technical amendment raising a statutory percentage cap. It is a straightforward procedural change to existing law that expands state discretion over federal transportation dollars.
What the text implies
- States with strong transit advocacy may shift highway funds to public transportation; states without may not, potentially widening regional disparities in transit investment.
- Increased transferability may reduce federal highway construction in some states if legislatures prioritize transit; this could affect construction employment in those regions.
The full analysis lists 3 implications of this text.
Who stands to gain
public transit agencies; state departments of transportation (expanded discretion); pedestrian/cycling infrastructure contractors (if states elect to fund these)