Balance the Highway Trust Fund Act

S 3786, the Balance the Highway Trust Fund Act, sets a strict annual spending limit for federal highway construction programs equal to the most recent Treasury estimate of highway tax receipts. It requires the Transportation Secretary to cap obligations at this level and redistribute unused funds to states with large unobligated balances, prioritizing those with significant leftover funds from previous years. The bill also applies similar spending limits to mass transit programs funded through the Highway Trust Fund’s Mass Transit Account. It directly affects state transportation departments and federal highway programs by changing how funds are allocated and redistributed. The law takes effect October 1, 2027.