Number: RL32409
Title: Highway Program Equity Guarantee Issues
Authors: Robert S. Kirk, Resources, Science, and Industry Division 
Abstract: Guaranteeing each state a percentage share return of federal highway funding on its highway user's payments to the highway account of the highway trust fund (HTF) has been the major remedy designed to assuage persistent concerns about the equity of distribution of federal highway funding (often referred to as the donordonee state issue). Somewhat differing forms of a Minimum Guarantee (MG) program have been in place for over twenty years. Under the Transportation Equity Act for the 21st Century (TEA-21) (P.L.105-178; P.L. 105-206) the MG provided for a 90.5% guaranteed share return on each states user tax payments to the HTF. During the on-going TEA-21 reauthorization debate a number of proposals for increasing the MG percentage have emerged. At first glance, raising the MG would simply appear to require an amendment changing the percentage specified in Section 105 of title 23 of the U.S.Code. A closer look shows that changing the MG has impacts on the interaction of highway program formulas, the funding of discretionary and formula programs, and the total budgetary resources needed to fund these programs: in short, on the whole Federal-Aid Highway Program (FAHP).
Pages: 33
Date: June 10, 2005