Highway Funding Fairness Act of 1996

Highway Funding Fairness Act of 1996 - Requires the Secretary of Transportation, for FY 1997, to determine the Federal-aid highway apportionments and allocations to a State without regard to the approximately $1.596 billion credit to the Highway Trust Fund (other than the Mass Transit Account) of estimated taxes paid by States that was made by the Secretary of the Treasury for FY 1995 in correction of an accounting error made in FY 1994.

Requires the Secretary, for each State, to: (1) determine whether the State would have been apportioned and allocated an increased or decreased amount for Federal-aid highways for FY 1996 if such error had not been made; and (2) adjust such amount for FY 1997 by the amount of the increase or decrease and to adjust accordingly the obligation limitation for Federal-aid highways distributed to the State under provisions of the Department of Transportation and Related Agencies Appropriations Act, 1997.

States that nothing in this Act shall affect any apportionment, allocation, or distribution of obligation limitation, or reduction thereof, to a State for Federal-aid highways for FY 1996.