Federal-Aid Highway Act

Federal-Aid Highway Act - Expresses the Federal interest in completing and maintaining an effective national interstate highway system.

Provides funding authorizations for the highway program, consistent with other transportation and national priorities.

Revises the apportionment formula and operating procedures to place highest priority on expediting the completion of interstate routes of national significance. Places lower priority on completion of routes primarily serving local needs.

Increases State and local flexibility in using Federal transportation assistance. Consolidates approximately thirty highway categorical grant programs into four broad programs: interstate system, urban and suburban transportation assistance program (areas over 50,000 population), rural transportation assistance program (any area not covered under the urban program), and the highway safety improvement program. Makes available urban, rural, and safety funds for use on highways not on the Federal-aid system and for projects to improve public transportation.

Eliminates the Highway Trust Fund's October 1, 1977, termination date. Extends the Trust Fund indefinitely. Provides that the Trust Fund shall be maintained exclusively for the construction and improvement of the interstate system.

Reduces revenues from the Federal gasoline tax going into the Highway Trust Fund from four cents to one cent. Provides that the Trust Fund would continue to receive revenues from other user taxes (tires, auto and truck parts, etc.) and the diesel fuel tax.

Directs that all non-interstate Federal highway programs-including rural, urban, and safety improvement-be financed out of the general fund. Requires that two of the three cents no longer going into the Highway Trust fund be returned to the general Fund of the U.S. Treasury.

Provides that the remaining one cent of the three cents be repealed in any State which correspondingly raises its State gasoline tax by at least one cent after September 30, 1976. Directs that if a State determines not to increase its own gasoline tax, the excess Federal revenues would go into the general fund. Provides that it would not be mandatory that States use this one cent from the Federal gasoline tax for transportation purposes.

Classifies the routes on the interstate system into two categories.

Provides that the first category consists of routes of national significance which are required for the development of a connected limited access intercity highway network. Provides access to and routes through or around major population centers.

States that the second category consists of all other interstate routes. Provides commuter service in major urbanized areas where the integrity of a connected interstate system would be provided by other routes.

Gives greater weight in the statutory apportionment formula to the cost of completing those routes of national significance. Apportions 50 percent of the annual authorization, based upon the cost of completing only those routes of national significance and 50 percent based upon the cost of completing all routes on the system. Provides that States with few routes of national importance would receive comparatively less funding, while States with critical gaps in the system would generally receive increased funding.

Requires that any funds apportioned based upon the cost of completing routes of national significance could only be used on those routes. Directs that remaining funds could be used on any routes.

Makes lapsed interstate funds available only at the discretion of the Secretary of Transportation and only for use on routes of national significance.