26 USC 9503 - Highway Trust Fund

U.S Code last checked for updates: Jan 18, 2025

§ 9503.

Highway Trust Fund

(a)

Creation of Trust Fund

(b)

Transfer to Highway Trust Fund of amounts equivalent to certain taxes and penalties

(1)

Certain taxes

There are hereby appropriated to the Highway Trust Fund amounts equivalent to the taxes received in the Treasury before October 1, 2028, under the following provisions—

(A)

section 4041 (relating to taxes on diesel fuels and special motor fuels),

(B)

section 4051 (relating to retail tax on heavy trucks and trailers),

(C)

section 4071 (relating to tax on tires),

(D)

section 4081 (relating to tax on gasoline, diesel fuel, and kerosene), and

(E)

section 4481 (relating to tax on use of certain vehicles).

For purposes of this paragraph, taxes received under sections 4041 and 4081 shall be determined without reduction for credits under section 6426 and taxes received under section 4081 shall be determined without regard to tax receipts attributable to the rate specified in section 4081(a)(2)(C).

(2)

Liabilities incurred before October 1, 2028

[(3)

Repealed. Pub. L. 109–59, title XI, § 11161(c)(2)(C), Aug. 10, 2005, 119 Stat. 1972]

(4)

Certain taxes not transferred to Highway Trust Fund

For purposes of paragraphs (1) and (2), there shall not be taken into account the taxes imposed by—

(A)

section 4041(d),

(B)

section 4081 to the extent attributable to the rate specified in section 4081(a)(2)(B),

(C)

section 4041 or 4081 to the extent attributable to fuel used in a train, or

(D)

in the case of gasoline and special motor fuels used as described in paragraph (3)(D) or (4)(B) of subsection (c), section 4041 or 4081 with respect to so much of the rate of tax as exceeds—

(i)

11.5 cents per gallon with respect to taxes imposed before October 1, 2001,

(ii)

13 cents per gallon with respect to taxes imposed after September 30, 2001, and before October 1, 2003, and

(iii)

13.5 cents per gallon with respect to taxes imposed after September 30, 2003, and before October 1, 2005.

(5)

Certain penalties

(A)

In general

(B)

Penalties related to motor vehicle safety

(i)

In general

(ii)

Covered motor vehicle safety penalty collections

(6)

Limitation on transfers to Highway Trust Fund

(A)

In general

Except as provided in subparagraph (B), no amount may be appropriated to the Highway Trust Fund on and after the date of any expenditure from the Highway Trust Fund which is not permitted by this section. The determination of whether an expenditure is so permitted shall be made without regard to—

(i)

any provision of law which is not contained or referenced in this title or in a revenue Act, and

(ii)

whether such provision of law is a subsequently enacted provision or directly or indirectly seeks to waive the application of this paragraph.

(B)

Exception for prior obligations

(c)

Expenditures from Highway Trust Fund

(1)

Federal-aid highway program

(2)

Floor stocks refunds

(3)

Transfers from the Trust Fund for motorboat fuel taxes

(A)

Transfer to Land and Water Conservation Fund

(i)

In general

(ii)

Limitation

(B)

Excess funds transferred to Sport Fish Restoration and Boating Trust Fund

Any amounts in the Highway Trust Fund—

(i)

which are attributable to motorboat fuel taxes, and

(ii)

which are not transferred from the Highway Trust Fund under subparagraph (A),

shall be transferred by the Secretary from the Highway Trust Fund into the Sport Fish Restoration and Boating Trust Fund.

(C)

Motorboat fuel taxes

(D)

Determination

(4)

Transfers from the Trust Fund for small-engine fuel taxes

(A)

In general

(B)

Small-engine fuel taxes

(5)

Transfers from the Trust Fund for certain aviation fuel taxes

The Secretary shall pay at least monthly from the Highway Trust Fund into the Airport and Airway Trust Fund amounts (as determined by the Secretary) equivalent to the taxes received on or after October 1, 2005, under section 4081 with respect to so much of the rate of tax as does not exceed—

(A)

4.3 cents per gallon of kerosene subject to section 6427(l)(4)(A) with respect to which a payment has been made by the Secretary under section 6427(l), and

(B)

21.8 cents per gallon of kerosene subject to section 6427(l)(4)(B) with respect to which a payment has been made by the Secretary under section 6427(l).

Transfers under the preceding sentence shall be made on the basis of estimates by the Secretary, and proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred. Any amount allowed as a credit under section 34 by reason of paragraph (4) of section 6427(l) shall be treated for purposes of subparagraphs (A) and (B) as a payment made by the Secretary under such paragraph.

(d)

Adjustments of apportionments

(1)

Estimates of unfunded highway authorizations and net highway receipts

The Secretary of the Treasury, not less frequently than once in each calendar quarter, after consultation with the Secretary of Transportation, shall estimate—

(A)

the amount which would (but for this subsection) be the unfunded highway authorizations at the close of the next fiscal year, and

(B)

the net highway receipts for the 48-month period beginning at the close of such fiscal year.

(2)

Procedure where there is excess unfunded highway authorizations

If the Secretary of the Treasury determines for any fiscal year that the amount described in paragraph (1)(A) exceeds the amount described in paragraph (1)(B)—

(A)

he shall so advise the Secretary of Transportation, and

(B)

he shall further advise the Secretary of Transportation as to the amount of such excess.

(3)

Adjustment of apportionments where unfunded authorizations exceed 4 years’ receipts

(A)

Determination of percentage

If, before any apportionment to the States is made, in the most recent estimate made by the Secretary of the Treasury there is an excess referred to in paragraph (2)(B), the Secretary of Transportation shall determine the percentage which—

(i)

the excess referred to in paragraph (2)(B), is of

(ii)

the amount authorized to be appropriated from the Trust Fund for the fiscal year for apportionment to the States.

If, but for this sentence, the most recent estimate would be one which was made on a date which will be more than 3 months before the date of the apportionment, the Secretary of the Treasury shall make a new estimate under paragraph (1) for the appropriate fiscal year.

(B)

Adjustment of apportionments

(4)

Apportionment of amounts previously withheld from apportionment

(5)

Definitions

For purposes of this subsection—

(A)

Unfunded highway authorizations

The term “unfunded highway authorizations” means, at any time, the excess (if any) of—

(i)

the total potential unpaid commitments at such time as a result of the apportionment to the States of the amounts authorized to be appropriated from the Highway Trust Fund, over

(ii)

the amount available in the Highway Trust Fund at such time to defray such commitments (after all other unpaid commitments at such time which are payable from the Highway Trust Fund have been defrayed).

(B)

Net highway receipts

The term “net highway receipts” means, with respect to any period, the excess of—

(i)

the receipts (including interest) of the Highway Trust Fund during such period, over

(ii)

the amounts to be transferred during such period from such Fund under subsection (c) (other than paragraph (1) thereof).

(6)

Measurement of net highway receipts

For purposes of making any estimate under paragraph (1) of net highway receipts for periods ending after the date specified in subsection (b)(1), the Secretary shall treat—

(A)

each expiring provision of subsection (b) which is related to appropriations or transfers to the Highway Trust Fund to have been extended through the end of the 48-month period referred to in paragraph (1)(B), and

(B)

with respect to each tax imposed under the sections referred to in subsection (b)(1), the rate of such tax during the 48-month period referred to in paragraph (1)(B) to be the same as the rate of such tax as in effect on the date of such estimate.

(7)

Reports

(e)

Establishment of Mass Transit Account

(1)

Creation of account

(2)

Transfers to Mass Transit Account

The Secretary of the Treasury shall transfer to the Mass Transit Account the mass transit portion of the amounts appropriated to the Highway Trust Fund under subsection (b) which are attributable to taxes under sections 4041 and 4081 imposed after March 31, 1983. For purposes of the preceding sentence, the term “mass transit portion” means, for any fuel with respect to which tax was imposed under section 4041 or 4081 and otherwise deposited into the Highway Trust Fund, the amount determined at the rate of—

(A)

except as otherwise provided in this sentence, 2.86 cents per gallon,

(B)

1.43 cents per gallon in the case of any partially exempt methanol or ethanol fuel (as defined in section 4041(m)) none of the alcohol in which consists of ethanol,

(C)

1.86 cents per energy equivalent of a gallon of diesel (as defined in section 4041(a)(2)(D)) in the case of liquefied natural gas,

(D)

2.13 cents per energy equivalent of a gallon of gasoline (as defined in section 4041(a)(2)(C)) in the case of liquefied petroleum gas, and

(E)

9.71 cents per MCF (determined at standard temperature and pressure) in the case of compressed natural gas.

(3)

Expenditures from Account

(4)

Limitation

(5)

Portion of certain transfers to be made from account

(A)

In general

(B)

Highway Account

(f)

Determination of Trust Fund balances after September 30, 1998

(1)

In general

(2)

Restoration of foregone interest

Out of money in the Treasury not otherwise appropriated, there is hereby appropriated—

(A)

$14,700,000,000 to the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund; and

(B)

$4,800,000,000 to the Mass Transit Account in the Highway Trust Fund.

(3)

Increase in Fund balance

(4)

Additional appropriations to Trust Fund

Out of money in the Treasury not otherwise appropriated, there is hereby appropriated to—

(A)

the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund—

(i)

for fiscal year 2013, $6,200,000,000, and

(ii)

for fiscal year 2014, $10,400,000,000, and

(B)

the Mass Transit Account in the Highway Trust Fund, for fiscal year 2014, $2,200,000,000.

(5)

Additional sums

Out of money in the Treasury not otherwise appropriated, there is hereby appropriated—

(A)

$7,765,000,000 to the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund; and

(B)

$2,000,000,000 to the Mass Transit Account in the Highway Trust Fund.

(6)

Additional increase in Fund balance

(7)

Additional sums

Out of money in the Treasury not otherwise appropriated, there is hereby appropriated—

(A)

$6,068,000,000 to the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund; and

(B)

$2,000,000,000 to the Mass Transit Account in the Highway Trust Fund.

(8)

Further transfers to Trust Fund

Out of money in the Treasury not otherwise appropriated, there is hereby appropriated—

(A)

$51,900,000,000 to the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund; and

(B)

$18,100,000,000 to the Mass Transit Account in the Highway Trust Fund.

(9)

Additional increase in Fund balance

(10)

Further transfers to Trust Fund

Out of money in the Treasury not otherwise appropriated, there is hereby appropriated—

(A)

$10,400,000,000 to the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund; and

(B)

$3,200,000,000 to the Mass Transit Account in the Highway Trust Fund.

(11)

Further transfers to Trust Fund

Out of money in the Treasury not otherwise appropriated, there is hereby appropriated—

(A)

$90,000,000,000 to the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund; and

(B)

$28,000,000,000 to the Mass Transit Account in the Highway Trust Fund.

(12)

Treatment of amounts

(Added Pub. L. 97–424, title V, § 531(a), Jan. 6, 1983, 96 Stat. 2187; amended Pub. L. 98–369, div. A, title IV, § 474(r)(43), title IX, § 911(d)(1), title X, § 1016(b), July 18, 1984, 98 Stat. 847, 1006, 1020; Pub. L. 99–499, title V, § 521(b)(1), Oct. 17, 1986, 100 Stat. 1777; Pub. L. 99–640, § 7(a), Nov. 10, 1986, 100 Stat. 3547; Pub. L. 100–17, title V, §§ 503(a), (b), 504, Apr. 2, 1987, 101 Stat. 257, 258; Pub. L. 100–203, title X, § 10502(d)(13)–(15), Dec. 22, 1987, 101 Stat. 1330–444, 1330–445; Pub. L. 100–448, § 6(a)(1), (3), Sept. 28, 1988, 102 Stat. 1839; Pub. L. 101–239, title VII, § 7822(b)(6), Dec. 19, 1989, 103 Stat. 2425; Pub. L. 101–508, title XI, § 11211(a)(5)(D)–(F), (b)(6)(H), (g)(1), (h)(1), (i)(1), Nov. 5, 1990, 104 Stat. 1388–424, 1388–426, 1388–427; Pub. L. 102–240, title VIII, §§ 8002(d)(1), (2)(A), (e), (f), 8003(b), Dec. 18, 1991, 105 Stat. 2204, 2205; Pub. L. 103–66, title XIII, §§ 13242(d)(34)–(41), 13244(a), Aug. 10, 1993, 107 Stat. 527, 529; Pub. L. 103–429, § 4, Oct. 31, 1994, 108 Stat. 4378; Pub. L. 105–34, title IX, § 901(a)–(d), title X, § 1032(e)(13), (14), title XVI, § 1601(f)(2), Aug. 5, 1997, 111 Stat. 871, 872, 935, 1090; Pub. L. 105–102, § 1, Nov. 20, 1997, 111 Stat. 2204; Pub. L. 105–130, § 9(a), Dec. 1, 1997, 111 Stat. 2560; Pub. L. 105–178, title IX, §§ 9002(c)(1), (2)(A), (3)–(e)(1), (f), 9004(a)(1), (b)(1), (c), (d), 9005(a), 9011(b)(1), (2), June 9, 1998, 112 Stat. 500, 501, 503, 504, 508; Pub. L. 105–206, title IX, § 9015(a), July 22, 1998, 112 Stat. 867; Pub. L. 105–225, § 7(a), Aug. 12, 1998, 112 Stat. 1511; Pub. L. 105–277, div. A, title IV, § 4006(b)(1), Oct. 21, 1998, 112 Stat. 2681–912; Pub. L. 105–354, § 2(c)(2), Nov. 3, 1998, 112 Stat. 3244; Pub. L. 106–554, § 1(a)(7) [title III, § 318(e)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–645; Pub. L. 108–88, § 12(a), Sept. 30, 2003, 117 Stat. 1128; Pub. L. 108–202, § 12(a), Feb. 29, 2004, 118 Stat. 491; Pub. L. 108–224, § 10(a), Apr. 30, 2004, 118 Stat. 638; Pub. L. 108–263, § 10(a), June 30, 2004, 118 Stat. 710; Pub. L. 108–280, § 10(a)(1)–(3), July 30, 2004, 118 Stat. 887; Pub. L. 108–310, § 13(a)(1)–(3), (c), Sept. 30, 2004, 118 Stat. 1163, 1164; Pub. L. 108–357, title III, § 301(c)(11)–(13), title VIII, § 868(a), (b), Oct. 22, 2004, 118 Stat. 1462, 1463, 1622; Pub. L. 109–14, § 9(a), May 31, 2005, 119 Stat. 335; Pub. L. 109–20, § 9(a), July 1, 2005, 119 Stat. 357; Pub. L. 109–35, § 9(a), July 20, 2005, 119 Stat. 390; Pub. L. 109–37, § 9(a), July 22, 2005, 119 Stat. 405; Pub. L. 109–40, § 9(a), July 28, 2005, 119 Stat. 421; Pub. L. 109–42, § 7(a), (d)(1), July 30, 2005, 119 Stat. 436, 438; Pub. L. 109–59, title XI, §§ 11101(c)(1), (2)(A), (d)(1), 11102(a), (b), 11115(a), 11161(c)(1), (2)(C), 11167(b), Aug. 10, 2005, 119 Stat. 1944, 1945, 1949, 1972, 1977; Pub. L. 109–432, div. A, title IV, § 420(b)(6), Dec. 20, 2006, 120 Stat. 2969; Pub. L. 110–172, § 11(a)(44), Dec. 29, 2007, 121 Stat. 2488; Pub. L. 110–244, title I, § 121(c), June 6, 2008, 122 Stat. 1608; Pub. L. 110–318, § 1(a), (b), Sept. 15, 2008, 122 Stat. 3532; Pub. L. 111–46, § 1, Aug. 7, 2009, 123 Stat. 1970; Pub. L. 111–68, div. B, § 159(a)(2), (b)(2), Oct. 1, 2009, 123 Stat. 2052; Pub. L. 111–88, div. B, § 103, Oct. 30, 2009, 123 Stat. 2972; Pub. L. 111–147, title IV, §§ 441(a), (b), 442(a), (b), 443(a), 444(a), (b)(2)–(4), 445(a), Mar. 18, 2010, 124 Stat. 93, 94; Pub. L. 111–322, title II, § 2401(a), Dec. 22, 2010, 124 Stat. 3531; Pub. L. 112–5, title IV, § 401(a), Mar. 4, 2011, 125 Stat. 22; Pub. L. 112–30, title I, §§ 141(a), 142(e)(1), (2)(A), Sept. 16, 2011, 125 Stat. 355, 356; Pub. L. 112–102, title IV, §§ 401(a), 402(e)(1), (2)(A), Mar. 30, 2012, 126 Stat. 281, 282; Pub. L. 112–140, title IV, §§ 401(a), 402(d)(1), (2)(A), June 29, 2012, 126 Stat. 402, 403; Pub. L. 112–141, div. D, title I, §§ 40101(a), 40102(e)(1), (2)(A), title II, §§ 40201(b), 40251, July 6, 2012, 126 Stat. 844–846, 864; Pub. L. 113–159, title II, §§ 2001(a), 2002(a), Aug. 8, 2014, 128 Stat. 1848; Pub. L. 113–287, § 5(h), Dec. 19, 2014, 128 Stat. 3269; Pub. L. 113–295, div. A, title II, § 217(a), Dec. 19, 2014, 128 Stat. 4035; Pub. L. 114–21, title II, § 2001(a), May 29, 2015, 129 Stat. 226; Pub. L. 114–41, title II, §§ 2001(a), 2002, July 31, 2015, 129 Stat. 453, 454; Pub. L. 114–73, title II, § 2001(a), Oct. 29, 2015, 129 Stat. 582; Pub. L. 114–87, title II, § 2001(a), Nov. 20, 2015, 129 Stat. 685; Pub. L. 114–94, div. C, title XXXI, §§ 31101(a), 31102(e)(1), (2)(A), 31201, 31202(a), Dec. 4, 2015, 129 Stat. 1726–1728; Pub. L. 115–141, div. U, title I, § 104(b), title IV, § 401(a)(341), Mar. 23, 2018, 132 Stat. 1170, 1200; Pub. L. 116–159, div. B, title II, §§ 1201, 1204, Oct. 1, 2020, 134 Stat. 727, 728; Pub. L. 117–44, title II, § 201(a), Oct. 2, 2021, 135 Stat. 386; Pub. L. 117–52, § 4(a), Oct. 31, 2021, 135 Stat. 409; Pub. L. 117–58, div. H, title I, §§ 80101(a), 80102(e)(1), (2)(A), 80103, Nov. 15, 2021, 135 Stat. 1327, 1328.)

cite as: 26 USC 9503