Federal Aid Highway Act of 1921

Identification: The Law: Legislation providing $75 million in federal funds for U.S. highway construction

Also known as: Phipps Act

Date: Enacted on November 9, 1921

The Federal Aid Highway Act of 1921, sponsored by Colorado senator Lawrence C. Phipps and signed into law by U.S. president Warren G. Harding, was one of the largest federal distributions of funds for highway construction. Expanding U.S. commerce and a need to create jobs contributed to this massive transportation development.

The Federal Aid Highway Act of 1921 and its predecessor, the Federal Aid Act of 1916, were administered through the U.S. Bureau of Public Roads (BPR), which was part of the U.S. Department of Agriculture. The chief administrative officer responsible for the 1921 project was National Highway Commission director Thomas H. MacDonald, whose efforts resulted in successful federal cooperation with individual states. Under the Federal Aid Highway Act of 1921, federal funds were distributed to qualifying states to help finance the construction of highways. These funds were to be matched by each state and were apportioned based on population, area size, and existing rural and mail mileage. States qualifying for funds could not receive less than $865,625. Large state highway construction required specific endorsement by the state highway department and the secretary of agriculture.

There were well over ten million vehicles on the roads in 1921. Road safety was an important consideration in highway construction, as many motor vehicle accidents were related to poor road conditions. Highway road plans had to be preapproved by the BPR, and the Phipps Act stipulated roadbed and road grade requirements. Road width was to be eighteen feet with two lanes; anything narrower required the approval of the secretary of agriculture.

States were then required to maintain the newly constructed roads. Failure to address maintenance problems within three months would result in the secretary of agriculture using that state’s allotment while arresting any new federal road aid until those funds were returned. As a safety measure, by 1924, over seven hundred dangerous traffic crossings were eliminated. By the end of 1922, ten thousand miles of new highway, or an average of two hundred miles per state, were added based on the federal funds. States also financed more highway construction from property taxes and vehicle license fees.

Impact

The Phipps Act represented the beginning of a deliberate interstate highway construction boom. It was a much-needed injection of funds towards the employment of over a quarter of a million workers in forty-eight states. It advanced the social and economic opportunities of many communities by giving them access to faster and safer transportation possibilities, while also positively affecting agriculture and commerce.

Bibliography

Varrasi, John. “Soaring Twenties.” Mechanical Engineering 127, no. 5 (2005): 39–41.

Weingroff, Richard F. “Highway Existence, One Hundred Years and Beyond: A Peaceful Campaign of Progress Reform: The Federal Highway Administration at One Hundred.” Public Roads 57, no. 2 (Fall, 1993):1–7.