A bill to amend the Federal-Aid Highway Act of 1973 as it relates to the conduct of charter bus operations by grantees of Federal financial assistance.

Provides that, as a condition of securing financial assistance pursuant to the Federal-Aid HIghway Act, applicants for such assistance, including public or private entities having the use of buses, must enter into an agreement with the Secretary of Transportation not to conduct charter bus operations outside of any urban area where the applicant provides regularly scheduled mass transportation service, if private operators are willing and able to provide such charter bus service.

Grants the Secretary power to bar grantees under this Act from receipt of further assistance where he finds a continuing pattern of violations of the terms of an agreement.

Requires the Secretary to amend any agreements entered into pursuant to the Federal-Aid Highway Act to conform them to the requirements of this Act.