To provide emergency assistance for the repair of certain weather related damage to highways and urban mass transportation systems due to the winter of 1977-1978.

Directs the Secretary of Transportation to enter into a contract with each State for payment of 100 percent of the costs of repairing highways and surface rails of urban mass transportation systems (other than railroads) which were damaged as a result of the winter weather of 1977-1978.

Authorizes appropriations of $250,000,000 out of the Highway Trust Fund to carry out the purposes of this Act.