Highway Formula Fairness Act

Key Points

• This bill changes the formula for how federal highway money is divided among states. It replaces the current system with one based on each state's share of gas tax contributions to the Highway Trust Fund, starting in fiscal year 2026.
• Under the new formula, every state would be guaranteed at least 95% of the share of highway funds that matches what its drivers paid into the Highway Trust Fund. This ensures "donor states" — those that contribute more in gas taxes than they receive — get a fairer return.
• The "applicable percentage" for each state is calculated by dividing the estimated gas tax payments from that state's highway users by the total gas tax payments from all states — essentially measuring each state's actual contribution.
• The bill was introduced by Rep. Chip Roy of Texas, along with Rep. Weber of Texas and Rep. Cuellar, and has been referred to the House Committee on Transportation and Infrastructure. It has bipartisan sponsorship, with both Republican and Democratic cosponsors from Texas.

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