Peace Garden News

Each year, approximately 90% of federal highway program funds are distributed to states based on a set formula. This method ensures funding certainty for all 50 states, not just those with large population centers. The funds are allocated to state Departments of Transportation (DOT) across various accounts such as the National Highway Performance Program and the Surface Transportation Block Grant Program. Under current legislation, state DOTs can transfer up to 50% of their funding annually between these accounts.

U.S. Senators Kevin Cramer and Angela Alsobrooks have introduced the Highway Funding Transferability Improvement Act. This act aims to raise the cap from 50% to 75%, providing state DOTs with greater flexibility to allocate funds according to local priorities.

Senator Cramer stated, “This is certainly one of the shortest, simplest bills I’ve ever introduced... but it will have one of the most significant impacts on the day-to-day lives of North Dakotans." He emphasized that states are best positioned to determine how to maximize their federal formula funds due to differing transportation needs across states.

Senator Alsobrooks expressed her commitment as Ranking Member of the Transportation and Infrastructure Subcommittee, saying she is "proud to partner with Senator Cramer" in offering more flexibility for infrastructure investments that matter most to communities.

A statement was made in support of Senator Cramer's efforts: “Thank you, Senator Cramer, for working to improve the effectiveness and flexibility of the federal aid highway program for all the states.” The statement highlighted that increasing transferability would help address specific transportation needs in North Dakota.

Additionally, a representative noted AASHTO's recent request for increased transferability among formula program categories without federal approval. They said this proposal "directly answers" their collective request and thanked both senators for enhancing flexibility, which they believe will improve the effectiveness of the federal highway program.

For further details on this legislative proposal, click here for bill text.