SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Interests in Rural Highways 
Act of 1997''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) a national surface transportation system that includes 
        a national network of highways and that provides for efficient 
        and safe interstate travel in every State is vital to the 
        economic and social well-being of the United States;
            (2) Federal policy for allocating resources to maintain an 
        efficient and safe national surface transportation system 
        should reflect the unique needs and circumstances of each 
        State's ability to participate in the transportation system;
            (3) low-density States that comprise large geographic land 
        areas--
                    (A) bear unique financial burdens in maintaining 
                their share of the national surface transportation 
                system; and
                    (B) typically support higher per-mile costs of 
                maintaining highways and contribute more per capita to 
                the Highway Trust Fund than other States;
            (4) many rural States have to maintain large highway 
        systems, which provide interstate access between major 
        population centers, but have small local populations to support 
        their highways;
            (5) since the approval and implementation of the North 
        American Free Trade Agreement, many rural States along the 
        northern border of the United States have experienced increased 
        use of, and demands on, their share of the national surface 
        transportation system due to increased international trade 
        activities;
            (6) Federal funding for surface transportation should 
        include adjustments that reflect reasonable and appropriate 
        resource allocations to ensure that rural, low-density States 
        that comprise large geographic land areas can adequately 
        participate in the national surface transportation system; and
            (7) contributions from all States permit the Federal 
        Government to provide support for essential intermodal national 
        priorities, such as a national system of highways, mass 
        transit, maritime activities, airports and air service, and 
        passenger rail service.

SEC. 3. MINIMUM HIGHWAY FUNDING ALLOCATION FOR CERTAIN TYPES OF STATES.

    Section 157(a)(4) of title 23, United States Code, is amended--
            (1) by striking ``In fiscal'' and inserting the following:
                    ``(A) In general.--In fiscal''; and
            (2) by adding at the end the following:
                    ``(B) Low-density, large-geographic-area states.--
                            ``(i) Definition of eligible state.--In 
                        this subparagraph, the term `eligible State' 
                        means a State that--
                                    ``(I) has a population density of 
                                less than 25 individuals per square 
                                mile; and
                                    ``(II) comprises a land area of 
                                10,000 square miles or more.
                            ``(ii) Historical apportionments.--
                        Notwithstanding any other provision of law, for 
                        fiscal year 1998 and each fiscal year 
                        thereafter, the Secretary shall increase the 
                        amount of funds that, but for this clause, 
                        would be apportioned to an eligible State under 
                        section 104(b)(3) so that each eligible State 
                        receives not less of the apportioned and 
                        allocated funds described in section 1015(a)(1) 
                        of the Intermodal Surface Transportation 
                        Efficiency Act of 1991 (23 U.S.C. 104 note; 105 
                        Stat. 1943) (as in effect on October 1, 1996) 
                        than the percentage listed for the State in 
                        section 1015(a)(2) of that Act (as in effect on 
                        October 1, 1996).
                            ``(iii) Set-aside.--Notwithstanding any 
                        other provision of law, on October 1 of fiscal 
                        year 1998 and each fiscal year thereafter, the 
                        Secretary shall--
                                    ``(I) before making any funds 
                                available out of the Highway Trust Fund 
                                (other than the Mass Transit Account) 
                                for the fiscal year, set aside from the 
                                amounts authorized to be appropriated 
                                out of the Highway Trust Fund (other 
                                than the Mass Transit Account) for the 
                                fiscal year an amount equal to 1.25 
                                percent of the funds that were made 
                                available out of the Highway Trust Fund 
                                (other than the Mass Transit Account) 
                                for the preceding fiscal year;
                                    ``(II) after making any increase 
                                for an eligible State necessary to 
                                carry out clause (ii), allocate 50 
                                percent of the amount set aside under 
                                subclause (I) among eligible States in 
                                the ratio that--
                                            ``(aa) the number of miles 
                                        of highways on the National 
                                        Highway System in the eligible 
                                        State; bears to
                                            ``(bb) the number of miles 
                                        of highways on the National 
                                        Highway System in all eligible 
                                        States; and
                                    ``(III) after making any increase 
                                for an eligible State necessary to 
                                carry out clause (ii), allocate 50 
                                percent of the amount set aside under 
                                subclause (I) among eligible States in 
                                the ratio that--
                                            ``(aa) the number of 
                                        vehicle miles traveled on the 
                                        National Highway System in the 
                                        eligible State during the 
                                        latest 1-year-period for which 
                                        data are available; bears to
                                            ``(bb) the number of 
                                        vehicle miles traveled on the 
                                        National Highway System in all 
                                        eligible States during the 
                                        latest 1-year-period for which 
                                        data are available.''.
National Interests in Rural Highways Act of 1997 - Amends Federal highway provisions to direct the Secretary of Transportation, for FY 1998 and thereafter, to increase and set aside an additional amount of Federal highway funds for allocation (according to a specified formula) to States that:  (1) have population densities of fewer than 25 individuals per square mile; and (2) comprise a land area of 10,000 square miles or more.
National Interests in Rural Highways Act of 1997