Congresswoman Harriet Hageman Introduces Bipartisan Bill to Empower States with Greater Flexibility in Highway Funding

Washington, D.C. – Congresswomen Harriet Hageman (WY-AL) and Dina Titus (NV-01) introduced the Highway Funding Transferability Improvement Act, a bipartisan bill that will provide state Departments of Transportation (DOTs) with greater flexibility in managing federal highway funds. 

Currently, approximately 90% of federal highway funding is distributed to states through a complex set of formula-based programs, including the National Highway Performance Program, Surface Transportation Block Grant Program, Highway Safety Improvement Program, and others. Under existing law, states may only transfer up to 50% of funding from any one formula program to another. 

The Highway Funding Transferability Improvement Act raises that cap to 75%, empowering states to better prioritize and allocate resources to meet their unique transportation needs. By allowing states to shift a greater share of funds between programs, the bill enhances their ability to respond to pressing infrastructure challenges with agility and efficiency. 

“States know best where their most urgent transportation needs lie,” said Congresswoman Hageman. “This commonsense, bipartisan legislation gives states the flexibility they need to invest in high-priority infrastructure projects that will improve safety, reduce congestion, and enhance economic competitiveness. It ensures that Wyoming, and every other state, can make the most effective use of federal resources.” 

"As a Senior Member of the House Transportation & Infrastructure Committee, I am working to improve the movement of people and products around Southern Nevada," said Congresswoman Titus. "By providing flexibility for funding, this bill will support projects that will be most transformative to Southern Nevadans, whether by reducing congestion on our roads, making them safer, or making them more resilient." 

“AASHTO's core policy principles for surface transportation reauthorization call on Congress to strengthen the federally-assisted state administered program by increasing transferability among formula program categories without federal approval. This legislation from Representative Hageman and Representative Titus to increase the federal formula funds transferability cap from the current 50 percent to 75 percent directly addresses the collective request of the nation's state departments of transportation. This bill will allow state DOTs and their local partners to increase the effectiveness of the federal highway program by ensuring that the right project will be funded at the right time,” said AASHTO Executive Director Tim Tymon.  

“We thank Congresswoman Hageman for sponsoring this useful legislation.  Increased transferability will help all states meet their specific transportation needs and deliver valuable projects more quickly.  We fully support this bill and the companion legislation in the Senate,” said WYDOT Director Darin Westby. 

The bill has earned the endorsement of the American Association of State Highway and Transportation Officials (AASHTO), which represents state DOTs across the country. A companion bill has already been introduced in the Senate by Senators Kevin Cramer (R-ND) and Angela Alsobrooks (D-MD). 

If enacted, the Highway Funding Transferability Improvement Act will mark a significant step toward empowering states with the tools they need to deliver modern, responsive infrastructure solutions. 

The full text of the Highway Funding Transferability Improvement Act is available here.

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