Congress quietly shifts highway money from poor states to rich ones
S. 3972 — Highway Formula Fairness Act · Filed by Ted Cruz (R-TX) · 3 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. Instead of using current formulas, it would lock each state's share based on what it paid into the Highway Trust Fund in the most recent year, with a floor guarantee that no state gets less than 95% of its proportional tax contribution. This primarily benefits states that pay more in fuel taxes relative to their current federal highway allocations.
Why we flagged it
The bill mechanically restructures federal highway apportionment by tying state allocations to historical fuel-tax contributions rather than current need-based or performance metrics. It is a formula change, not a new program or deregulation.
What the text implies
- States with aging infrastructure but lower fuel-tax bases (e.g., rural or lower-income states) may see reduced federal highway funding, potentially widening infrastructure disparities.
- The 95% floor guarantee creates a complex adjustment mechanism that may be difficult for states to predict or plan around, introducing budgeting uncertainty.
The full analysis lists 4 implications of this text.
Who stands to gain
States with high fuel-tax contributions relative to current federal allocations; Highway construction and engineering firms operating in over-funded states; Trucking and logistics companies in states gaining funding (improved freight infrastructure)