Federal highway spending capped at fuel-tax revenue—no more deficit-financed projects
S. 3786 — Balance the Highway Trust Fund Act · Filed by Mike Lee (R-UT) · Introduced Feb 5, 2026 · Referred to committee
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What it does
This bill caps federal highway and transit spending to match actual fuel-tax revenues collected, preventing the Highway Trust Fund from spending more money than it receives. It requires the Transportation Secretary to distribute available funds proportionally among states and programs, with unused funds redistributed to states that can spend them. The bill takes effect October 1, 2027.
Why we flagged it
The bill's core mechanism is a hard ceiling on federal highway and transit obligations, tying spending to fuel-tax receipts rather than authorized appropriations. This is a fiscal constraint, not a reallocation or reform of how funds are used.
What the text implies
- States with lower fuel-tax collections or higher infrastructure backlogs will receive proportionally less federal support, potentially widening regional infrastructure disparities.
- The bill does not adjust the fuel-tax rate; if fuel consumption declines (due to electric vehicles or efficiency), highway funding will shrink automatically without legislative action.
- Transit funding (Mass Transit Account) is capped separately, potentially starving public transit in favor of highway projects if fuel-tax revenue is insufficient for both.
- The redistribution mechanism after August 1 may create mid-year uncertainty for project planning, as states cannot rely on full-year funding allocations.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
The bill constrains federal highway and transit spending to fuel-tax revenue alone, eliminating the current practice of borrowing against future revenues to fund projects. This reduces total federal investment in transportation infrastructure, delaying or canceling projects that would otherwise proceed. Citizens in states with lower fuel-tax collections or higher infrastructure needs bear disproportionate costs.
Named in the bill
Secretary of Transportation, Secretary of the Treasury, Highway Trust Fund, Mass Transit Account, Internal Revenue Code Section 9503, Title 23 United States Code, Title 49 United States Code Section 5338
Where it stands
- Feb 5, 2026 — Introduced · Congress.gov: “Introduced in Senate”
- Feb 5, 2026 — Referred to Senate Committee on Environment and Public Works · Congress.gov: “Read twice and referred to the Committee on Environment and Public Works”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (6,215 characters) on Apr 16, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
“Federal highway spending capped at fuel-tax revenue—no more deficit-financed projects” QuorumCivic. https://share.quorumcivic.app/bill/119/s3786 Report an error
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