Fair Allocation of Highway Funds Act of 2017

Summary: Fair Allocation of Highway Funds Act of 2017 This bill revises the methodology for apportioning federal highway funds among states for each of FY2018-FY2020. Specifically, the bill adjusts each state's apportionment based&nbsp;not only on certain tax payments attributable to highway users in&nbsp;the state, but also on other federal taxes collected&nbsp;in&nbsp;the state relative to such taxes collected in all states. The bill also caps the apportionment that each state may receive.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Allocation of Highway Funds Act 
of 2017''.

SEC. 2. CALCULATION OF AMOUNTS.

    Section 104(c)(1)(B) of title 23, United States Code, is amended--
            (1) by striking ``The initial amounts'' and inserting the 
        following:
                            ``(i) General rule.--Except as provided in 
                        clause (ii), the initial amounts''; and
            (2) by adding at the end the following:
                            ``(ii) Special rule for fiscal years 2018 
                        through 2020.--
                                    ``(I) In general.--Notwithstanding 
                                clause (i), for each of fiscal years 
                                2018, 2019, and 2020, the initial 
                                amounts resulting from the calculation 
                                under subparagraph (A) shall be 
                                adjusted to ensure that each State 
                                receives an aggregate apportionment 
                                equal to at least 95 percent, but not 
                                more than 105 percent, of the sum of--
                                            ``(aa) the estimated tax 
                                        payments attributable to 
                                        highway users in the State paid 
                                        into the Highway Trust Fund 
                                        (other than the Mass Transit 
                                        Account) in the most recent 
                                        fiscal year for which data are 
                                        available; plus
                                            ``(bb) an amount which 
                                        bears the same ratio to the 
                                        General Fund transfer amount 
                                        for the applicable fiscal year 
                                        as--

                                                    ``(AA) the 
                                                aggregate of amounts 
                                                collected in such State 
                                                under the Federal 
                                                internal revenue laws 
                                                (other than the taxes 
                                                and penalties described 
                                                in section 9503(b) of 
                                                the Internal Revenue 
                                                Code of 1986) in the 
                                                most recent fiscal year 
                                                for which data are 
                                                available; bears to

                                                    ``(BB) the 
                                                aggregate of amounts 
                                                collected in all States 
                                                under such Federal 
                                                internal revenue laws 
                                                in such fiscal year.

                                    ``(II) Total apportionment.--After 
                                the adjustment described in subclause 
                                (I), the amount for each State 
                                determined under this subsection for 
                                each of fiscal years 2018, 2019, and 
                                2020 shall be adjusted by a single 
                                multiplicative factor to ensure that 
                                the total amount apportioned will not 
                                be affected by this clause.
                                    ``(III) General fund transfer 
                                amount defined.--In this clause, the 
                                term `General Fund transfer amount' 
                                means, for a fiscal year, the product 
                                obtained by multiplying the amount 
                                identified in section 9503(f)(8)(A) of 
                                the Internal Revenue Code of 1986 by 
                                the proportion that--
                                            ``(aa) the amount 
                                        authorized for appropriation 
                                        under section 1101(a)(1) of the 
                                        FAST Act for that fiscal year; 
                                        bears to
                                            ``(bb) the aggregate amount 
                                        authorized for appropriation 
                                        under section 1101(a)(1) of the 
                                        FAST Act for fiscal years 2018, 
                                        2019, and 2020.''.