To reduce the maximum speed limit on certain rural roads to 55 miles per hour, and for other purposes.

Provides for the withholding of Federal highway funds to States which fail to reinstate the 55 mile per hour speed limit on highways located outside of urbanized areas of a population of 50,000 or more. (Current law allows higher speed limits for such highways.)

Increases the percentage of Federal funds withheld from States which the Secretary determines (on the basis of a formula provided in regulations promulgated by the Secretary) are failing to enforce the maximum speed limit. Sets forth criteria to be considered in deriving such formula, such as assigning greater weight to violations of the maximum speed limit in proportion to the amount by which the vehicle exceeds such limit.

Directs that such withheld funds be used to finance highway safety programs. Authorizes the release of any such withheld funds which have not been expended for a highway safety program to be used for their original purpose as soon as the Secretary determines that the State is enforcing the maximum speed limit.

Directs the Secretary of Transportation to prescribe and publish regulations for improved enforcement of the maximum speed limit and improved reporting and certification requirements.