Fair Allocation of Highway Funds Act of 2021
Bill: H.R.4314 | Sponsor: Rep. Foster, Bill (D-IL)
Policy area: Transportation and Public Works

Summary:
Fair Allocation of Highway Funds Act of 2021
This bill revises the methodology for apportioning federal highway funds among states. Specifically, the bill adjusts each state's apportionment to account for both certain tax payments attributable to highway users in the state and other federal taxes collected in the state relative to such taxes collected in all states. The bill also caps the apportionment that each state may receive.

To amend title 23, United States Code, with respect to apportionments 
    to States for certain highway programs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Allocation of Highway Funds Act 
of 2021''.

SEC. 2. CALCULATION OF AMOUNTS.

    Section 104(c)(1) of title 23, United States Code, is amended by 
striking subparagraph (B) and inserting the following:
                    ``(B) Adjustment to amounts.--
                            ``(i) In general.--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--
                                    ``(I) 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
                                    ``(II) an amount which bears the 
                                same ratio to the General Fund transfer 
                                amount 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 spending.--After the 
                        adjustment described in clause (i), the amount 
                        for each State determined under this subsection 
                        shall be adjusted by a single multiplicative 
                        factor to ensure that total spending will not 
                        be affected by this subparagraph.
                            ``(iii) General fund transfer amount 
                        defined.--In this subparagraph, the term 
                        `General Fund transfer amount' means the amount 
                        equal to the aggregate amount of funds, as 
                        estimated by the Secretary of Transportation, 
                        to be apportioned from the Highway Trust Fund 
                        in the fiscal year in which the apportionment 
                        will be made that are attributable to deposits 
                        in the Fund derived from a source other than 
                        the taxes and penalties described in section 
                        9503(b) of the Internal Revenue Code of 
                        1986.''.
                                 <all>