Fair Transportation Act This bill addresses the disbursement of surface transportation funding in an equitable way by federal, state, and local entities. Specifically, the Government Accountability Office (GAO) must review the extent to which states consider equity and improve equity outcomes in the use of federal surface transportation funds at all phases of project delivery, including the diverse transportation needs of economically disadvantaged and underserved populations. Additionally, the Department of Transportation (DOT) must carry out a transportation equity research program for research and demonstration activities that focus on the impacts that surface transportation planning, investment, and operations have on economically disadvantaged and underserved populations, including communities of color, low-income communities, and individuals with disabilities. The GAO must also review discretionary grant programs for surface transportation projects to determine the extent to which DOT is awarding funding through such programs to projects that serve groups or populations experiencing differential impacts in the transportation sector. Further, DOT must issue guidance on equity consideration metrics and best practices while disbursing federal funds.