H.R. 3972 — Highway Funding Flexibility Act of 2025

This section redirects all unobligated funds as of enactment, and all future fiscal year funds, from the National Electric Vehicle Infrastructure Formula Program—established by the Infrastructure Investment and Jobs Act (IIJA) to provide formula funding to states for deploying electric vehicle (EV) charging infrastructure along designated alternative fuel corridors—to specified highway improvement activities. Eligible uses are limited to (1) construction, reconstruction, resurfacing, restoration, rehabilitation, or preservation of Federal-aid highways; (2) projects to replace, rehabilitate, preserve, or protect bridges on the National Bridge Inventory; (3) improvements to reduce wildlife-vehicle collisions (e.g., wildlife crossing structures); (4) projects to preserve or expand commercial motor vehicle parking eligible under MAP-21; or (5) preliminary engineering, engineering, or design services related to such projects. (Thus, no NEVI funds may be used for EV charging infrastructure.) This section further requires proportional distribution to states—based on each state's share of total apportionments under 23 U.S.C. §104(c) (National Highway Performance Program and other core formulas) and §165 (surface transportation block grant program)—of (1) unobligated NEVI set-asides for the Joint Office of Energy and Transportation and (2) unobligated set-asides for grants to states or localities needing additional assistance for EV charging deployment, with future such funds distributed annually on October 1; all such amounts must be used for the eligible activities listed above. These repurposed amounts are not subject to Federal-aid obligation limitations, remain available through their original periods under NEVI, and are in addition to other state apportionments under 23 U.S.C. §§104(c) and 165; they are administered as if apportioned under chapter 1 of title 23, U.S. Code (Federal-aid highways), and are subject to IIJA §11101(e) (buy America requirements) and 23 U.S.C. §120 (federal share).

This section requires the Secretary of Transportation to distribute to states, proportional to their apportionments under 23 U.S.C. §§104(c) and 165, (1) any unobligated amounts available as of enactment for the Charging and Fueling Infrastructure Grant Program (i.e., competitive grants under 23 U.S.C. §151(f) for deployment of electric vehicle charging, hydrogen fueling, and related infrastructure), and (2) any amounts made available for the program in fiscal years beginning after enactment, with such future-year distributions occurring on October 1 of the applicable fiscal year. Distributed amounts (A) shall be used only for purposes described in section 2(b)(1)(A) and not for program purposes; (B) are subject to obligation limitations for Federal-aid highway and highway safety construction programs; (C) remain available until the periods applicable under the program; (D) are in addition to other apportionments under §§104(c) and 165; and (E) shall be administered as if apportioned under chapter 1 of title 23, subject to section 11101(e) of the Infrastructure Investment and Jobs Act (23 U.S.C. 101 note) and section 120 of title 23.