US SB3786

Federal-aid highway and highway safety construction program obligations would be capped each fiscal year at the net highway receipts estimated by the Secretary of the Treasury, effectively limiting spending to actual revenue collected.

Mass Transit Account obligations from the Highway Trust Fund would similarly be limited to the net mass transit receipts estimated by the Treasury for each fiscal year.

The Secretary of Transportation must redistribute unused obligation authority after August 1 of each fiscal year to states that can use additional funds, prioritizing states with large unobligated balances.

Funds that cannot be allocated due to obligation limitations must be distributed to states within 30 days for use on eligible surface transportation projects under section 133(b) of title 23.

The provisions take effect October 1, 2027.