Highway Funding Transferability Improvement Act

This bill amends federal highway funding rules to allow states to move a larger share of their federal-aid highway funds between project categories. Specifically, it increases the maximum percentage of funds that can be transferred from 50% to 75% under Section 126(a) of Title 23, U.S. Code. This directly affects state transportation departments, giving them greater flexibility to reallocate funds within their highway programs without needing federal approval for the full amount. The change simplifies administrative processes for states managing federal highway budgets.