Central ND News

Each year, approximately 90% of federal highway program funds are distributed to states through a formula that provides funding certainty across all 50 states. These funds are allocated to state Departments of Transportation (DOT) through various accounts, including the National Highway Performance Program and the Surface Transportation Block Grant Program. Under current law, state DOTs can transfer up to 50% of their funding annually between these accounts.

U.S. Senators Kevin Cramer and Angela Alsobrooks have introduced the Highway Funding Transferability Improvement Act, which aims to increase this cap to 75%. This change would allow state DOTs more flexibility in directing funds toward high-priority infrastructure projects.

Senator Cramer stated, “This is certainly one of the shortest, simplest bills I’ve ever introduced... but it will have one of the most significant impacts on the day-to-day lives of North Dakotans." He emphasized that states know their needs better than federal bureaucrats and should be allowed to determine how best to use federal formula funds.

Senator Alsobrooks expressed her commitment as Ranking Member of the Transportation and Infrastructure Subcommittee by saying she is "proud to partner with Senator Cramer" in providing states more flexibility for infrastructure projects.

A statement from an unnamed source thanked Senator Cramer for working towards improving the effectiveness and flexibility of federal aid highway programs for all states. They noted that increasing transferability among formula program categories without federal approval aligns with AASHTO's core policy principles for surface transportation reauthorization.

The proposal has been well-received by those advocating for increased flexibility in managing transportation investments at the state level. It addresses requests from state departments of transportation nationwide by allowing them greater latitude in using federal highway program funds effectively.