This bill proposes to remove a mandatory state funding set-aside specifically designated for transportation alternative programs. It primarily amends section 133 of title 23, United States Code, by striking the subsection that requires this set-aside within the Surface Transportation Block Grant Program. The legislation aims to provide states with greater discretion over the allocation of these federal highway funds. By eliminating this earmark, states would no longer be required to dedicate a portion of their Surface Transportation Block Grant funds to these specific alternative programs. Conforming amendments are also made to sections 126(b) and 134(r)(3) of title 23 to ensure consistency with the removal of this set-aside.