Congress caps highway spending to match fuel taxes—risking infrastructure backlog
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 revenue collected, preventing the Highway Trust Fund from going into deficit. It requires the Department of Transportation to distribute available funds proportionally to states based on authorized programs, and allows unused funds to be 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 cap on federal highway and transit obligations tied to fuel-tax revenue, functioning as a fiscal brake on infrastructure spending rather than a traditional authorization or appropriation measure.
What the text implies
- If fuel-tax revenue declines (due to vehicle electrification, improved fuel efficiency, or economic downturn), highway and transit spending will automatically shrink without further congressional action, potentially creating infrastructure maintenance backlogs.
- The bill does not address the structural mismatch between fuel-tax revenue (which has been flat since 2009) and inflation-adjusted infrastructure costs, meaning real purchasing power for projects will decline over time.
The full analysis lists 4 implications of this text.
Who it affects
The bill prevents deficit spending on highways and transit, which protects long-term fiscal stability and prevents future taxpayer bailouts of the trust fund. However, it may reduce total federal highway and transit investment below current levels if fuel-tax revenue declines, potentially limiting infrastructure improvements and maintenance that benefit the public.