The Gas Prices Relief Act of 2026 would temporarily suspend federal gasoline taxes and the Leaking Underground Storage Tank Trust Fund financing rate from its enactment until October 1, 2026, aiming to reduce costs for consumers who purchase gasoline. Specifically, it sets the federal excise tax on gasoline to zero during this period. To prevent funding shortfalls, the bill directs the Treasury to transfer equivalent amounts from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. It also includes a policy that the tax reduction should be passed on to consumers and empowers the Secretary of the Treasury to ensure this, potentially through monetary penalties for producers and dealers who do not reduce prices.
This bill, known as the Gas Tax Reduction Act, directs the federal government to withhold 8% of transportation funding from any state that raises its gasoline tax to $0.50 per gallon or higher. The affected states would receive reduced federal highway and transportation funds until they lower their gas tax below the specified threshold. The mechanism automatically triggers the withholding on the first day of each fiscal year following the tax increase, without requiring additional federal approval. This policy change directly impacts state budgets and transportation infrastructure projects by linking federal funding to state-level gas tax decisions.
This bill amends the FAST Act to adjust funding limits for federal permitting improvement programs. It directly affects agencies and projects that rely on these specific funding allocations under the existing law. The key provision replaces a $200 million funding cap with a $50 million cap in two sections of the FAST Act. These changes take effect on January 1, 2027, or upon enactment, whichever occurs later.
The NO TOD Act prohibits the use of federal transportation funding for transit-oriented development projects, which are commercial or residential developments located near public transit. This legislation removes eligibility for the Transportation Infrastructure Finance and Innovation Act (TIFIA) program and eliminates certain planning initiatives that previously supported such developments. The changes apply to projects applying for funding after the bill is enacted, directly affecting developers, transit agencies, and local governments seeking federal assistance for mixed-use projects near transit stations.
This bill, known as the BASICS Act, creates a new $5.5 billion federal funding program over five years to repair and replace bridges in poor condition across the United States. The program prioritizes projects based on the cost of bridge rehabilitation in each state and guarantees a minimum funding allocation of $45 million per state annually. It also expands funding for regional transportation planning in rural areas and increases flexibility for local governments to select and manage transportation projects through enhanced consultation requirements. Additionally, the legislation removes local matching fund requirements for metropolitan planning activities and allows 100 percent federal funding for off-system bridge projects owned by local governments or tribes.
The Tribal Roads Improvement Act addresses the poor condition of approximately 160,000 miles of roads on Tribal lands by allowing Tribal governments to use more of their transportation funding for road grading projects. This change removes a previous limitation that restricted how much of Tribal Transportation Program funds could be spent on grading, giving Tribes greater flexibility to improve road infrastructure. The bill also requires the Secretary of the Interior to conduct a study within three years to evaluate the impact of this funding flexibility on road conditions, economic development, and community access. Results from the study will be reported to Congress with recommendations on how to further support Tribal road grading initiatives.
The Interstate Ferry Fairness Act allows privately owned ferries and ferry terminals operating between two adjoining states to receive federal funding for construction and purchase. Under this legislation, private ferry operators can apply for federal assistance if the Secretary of Transportation determines the project provides substantial public benefits or meets surface transportation needs. The bill also permits privately owned ferries to charge fares that cover operational costs plus a reasonable rate of return approved by the Secretary. These changes expand eligibility for the Ferry Boat Program beyond publicly owned vessels, while maintaining oversight on fare structures and fund usage.
This bill, known as the No Free Rides Act of 2026, would prohibit federal public transportation funding recipients from offering universal free fare policies that allow all riders to use transit services without paying. The law would still permit targeted fare policies that provide free or reduced-cost rides for specific groups such as seniors, low-income riders, students, or employees with employer-paid agreements. Additionally, the Secretary of Transportation could grant waivers if a transit agency can demonstrate a dedicated non-federal revenue source to support universal free fare programs. The measure directly affects public transportation agencies that receive federal assistance under Title 49 of the United States Code.
This bill establishes a dedicated Transportation Security Trust Fund to ensure money collected from airline passenger security fees is used exclusively for aviation security purposes. The fund would support the Transportation Security Administration by paying salaries and benefits for its personnel, funding passenger and baggage screening operations, and purchasing security technology and infrastructure. Additionally, the legislation guarantees that aviation security operations can continue without interruption during government funding lapses, prioritizing frontline staff compensation and operational expenses before using remaining funds for technology upgrades.
This bill, known as the Highway Formula Fairness Act, changes how federal highway funds are distributed to states starting in fiscal year 2026. It requires that each state receive at least 95 percent of the funds it would normally get based on its share of highway user taxes paid into the Highway Trust Fund. The law uses historical data from 2012 to calculate each state's initial funding share, then adjusts those amounts to ensure states meet the minimum threshold. This change directly affects state transportation budgets and the allocation of federal highway program money.
