This project initially entailed a review of current literature on federal agency, DOT, and other transportation agency practices in performance-based budgeting, planning, and management of highway transportation programs, particularly with regard to lessons for highway-program budgeting, planning, and management. The research team worked with AASHTO leadership to develop and refine descriptions of the current state of practice in performance-based budgeting, planning, and management of highway transportation programs and to assess the impact of alternate federal-aid program mixes and apportionment formulas on transportation agencies’ ability to achieve specific performance goals. Working with AASHTO leadership, the research team undertook to develop alternatives for federal-aid program management to improve agencies’ ability to achieve specific performance goals