Repairing Our Aging Roads Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Repairing Our Aging Roads Act''.

SEC. 2. TRANSPORTATION BONDS AND TRUST FUNDS.

    (a) Authority To Issue Transportation Bonds.--Section 3102 of title 
31, United States Code, is amended by adding at the end the following 
new subsection:
    ``(f) Transportation Bonds.--
            ``(1) In general.--The Secretary is authorized to issue 
        bonds under this section, to be known as `Transportation 
        Bonds'. Transportation Bonds shall be issued for each of the 50 
        States and shall be separately identified with respect to each 
        State.
            ``(2) Limitation.--The aggregate amount of Transportation 
        Bonds issued with respect to each State shall not exceed 
        $2,000,000,000.
            ``(3) Form.--Except as provided in paragraph (3), the bonds 
        authorized by paragraph (1) shall be in such form and 
        denominations, and shall be subject to such terms and 
        conditions of issue, conversion, redemption, maturation, 
        payment, and rate of interest as the Secretary may prescribe.
            ``(4) Maximum rate of interest.--The rate of interest on 
        any bond authorized by paragraph (1) shall not exceed the rate 
        of interest which is 0.25 percentage points less than the rate 
        of interest which would apply with respect to an otherwise 
        substantially identical bond authorized under subsection 
        (a).''.
    (b) Transportation Trust Funds.--
            (1) Establishment of trust funds.--There is established in 
        the Treasury of the United States 50 separate trust funds, 
        consisting of such amounts as may be appropriated, credited, or 
        transferred to each such trust fund as provided in this section 
        or other provision of law. Such trust funds shall be 
        established with respect to each of the 50 States and each 
        shall be known as the ``State Transportation Trust Fund'' 
        (where the name of the corresponding State is substituted for 
        ``State''). For purposes of this subsection, any reference to 
        ``each State Transportation Trust Fund'' shall be treated as a 
        reference to each of the 50 trust funds established under this 
        paragraph.
            (2) Transfers to trust funds.--There are hereby 
        appropriated to each State Transportation Trust Fund amounts 
        equivalent to all revenues derived from the sale and issuance 
        of Transportation Bonds issued under section 3102 of title 31, 
        United States Code, with respect to the corresponding State.
            (3) Expenditures from trust funds.--Amounts in each State 
        Transportation Trust Fund shall be available, without need of 
        further appropriation, for monthly disbursement to the 
        corresponding State with respect to such Trust Fund. Such 
        monthly disbursements shall be used by the corresponding State 
        only for purposes of making expenditures to construct or 
        improve transportation infrastructure in the corresponding 
        State.
    (c) Prevention of State Participation in Transportation Bonds 
Program.--
            (1) In general.--The Secretary of the Treasury shall not 
        issue any Transportation Bond under section 3102(f) of title 
        31, United States Code, as added by subsection (a), to any 
        State or political subdivision thereof.
            (2) Denial of state benefit from indirect acquisitions.--
        Appropriations to any State Transportation Trust Fund under 
        subsection (b)(2) shall be reduced by the amount of any 
        revenues derived from the sale or issuance of any 
        Transportation Bond to any person if such bond was acquired by 
        such person with funds provided directly or indirectly by any 
        State or political subdivision thereof.

SEC. 3. OFFSETTING REDUCTION IN DISCRETIONARY SPENDING.

    (a) Calculation.--On the last day of the first quarter during which 
Transportation Bonds are issued under section 3102(f) of title 31, 
United States Code (as added by subsection (a)), and on the last day of 
each quarter thereafter, the Secretary of the Treasury shall calculate 
the dollar amount of bonds issued during any such quarter.
    (b) Rescission.--On the first day of the quarter immediately 
following any quarter with respect to which a calculation is made under 
subsection (a), there is hereby rescinded an amount equal to the 
calculated dollar amount of--
            (1) the budget authority provided for any discretionary 
        account in any appropriation Act for the fiscal year in which 
        such first day occurs; and
            (2) the budget authority provided in any advance 
        appropriation for any discretionary account in any prior year 
        appropriation Act.
    (c) Proportionate Application.--Any rescission made by subsection 
(b) shall be applied proportionately--
            (1) to each discretionary account and each item of budget 
        authority described in such subsection; and
            (2) within each such account and item, to each program, 
        project, and activity (with programs, projects, and activities 
        as delineated in the appropriation Act or accompanying reports 
        for the relevant fiscal year covering such account or item, or 
        for accounts and items not included in appropriation Acts, as 
        delineated in the most recently submitted President's budget).

Summary: Repairing Our Aging Roads Act - Authorizes the Secretary of Transportation (DOT) to issue Transportation Bonds in the aggregate of up to $2 billion to each state for transportation infrastructure projects. Establishes in the Treasury 50 separate State Transportation Trust Funds consisting of amounts derived from the sale and issuance of Transportation Bonds to construct or improve state transportation infrastructure. Requires an offsetting reduction, equal to the dollar amount of bonds issued, in any discretionary account in any appropriation Act.