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WASHINGTON, D.C. – Each year, roughly 90% of federal highway program dollars are distributed to states through a set formula. This approach provides funding certainty for all 50 states nationwide, rather than solely funneling money toward population hubs. Funds delivered via formula are allocated to state Departments of Transportation (DOT) across different accounts such as the National Highway Performance Program, Surface Transportation Block Grant Program, Highway Safety Improvement Program, Congestion Mitigation & Air Quality Improvement Program, Carbon Reduction Program, and PROTECT Formula Program. Under current law, state DOTs can transfer up to 50% of their funding annually between these accounts to better meet the needs of their state.

U.S. Senators Kevin Cramer (R-ND), Chair of the Senate Environment and Public Works (EPW) Transportation and Infrastructure (T&I) Subcommittee, and Angela Alsobrooks (D-MD), Ranking Member of EPW T&I Subcommittee, introduced the Highway Funding Transferability Improvement Act, raising the cap to 75%, giving state DOTs more flexibility to direct funds to high-priority infrastructure projects in their states. The enhanced transferability allows state DOTs to make investments better reflecting local needs and deliver results for constituents.

“This is certainly one of the shortest, simplest bills I’ve ever introduced, in fact, that I’ve ever read,” said Cramer. “But it will have one of the most significant impacts on the day-to-day lives of North Dakotans. We all know that states know their needs better than any bureaucrat in Washington, so it only makes sense to let the states determine how to maximize the federal formula funds that they receive. North Dakota, Maryland, and every state in between all have very different transportation needs and our bill recognizes that one-size-fits-all simply does not work and it lets states decide what works best for their constituents.”

“As Ranking Member of the Transportation and Infrastructure Subcommittee, I am committed to working with my colleagues to deliver for Maryland,” said Alsobrooks. “And I am proud to partner with Senator Cramer to give all our states more flexibility to direct funds to the infrastructure projects that matter most to our communities and to leverage as much federal funding as possible to support transportation investments.”

“Thank you, Senator Cramer, for working to improve the effectiveness and flexibility of the federal aid highway program for all the states,” said Ron Henke, Director of the North Dakota Department of Transportation. “This proposed common sense change to increase the transferability of federal aid highway funds between eligible programs would provide more flexibility for the NDDOT to address the specific transportation needs of the state of North Dakota.”

“As part of AASHTO's recently adopted core policy principles for surface transportation reauthorization, we asked Congress to strengthen the federally-assisted state administered program by increasing transferability among formula program categories without federal approval,” said Jim Tymon, Executive Director of the American Association of State Highway and Transportation Officials. “This proposal from Senator Cramer and Senator Alsobrooks to increase federal formula funds transferability cap from the current 50 percent to 75 percent directly answers to the collective request of the nation's state departments of transportation. We extend our gratitude to the Senators for this additional flexibility, as this bill will allow state DOTs and their local partners to increase the effectiveness of the federal highway program by ensuring that the right project will be funded at the right time.”

Click here for bill text.