To amend title 23, United States Code, to reduce the funding available for a State under the national highway performance program and the surface transportation program if the State issues a license plate that contains an image of a flag of the Confederate States of America, including the Battle Flag of the Confederate States of America.

“(h) Reduction of apportionment for certain Federal-Aid highway programs—The amount apportioned to a State under paragraphs (1) and (2) of subsection (b) shall be reduced by an amount equal to 5 percent of those funds—

“(1) effective beginning on October 1 of the first fiscal year beginning after the date of enactment of this subsection, for each fiscal year in which the State issues a license plate that contains an image of a flag of the Confederate States of America, including the Battle Flag of the Confederate States of America; and

“(2) effective beginning on October 1 of the second fiscal year beginning after the date of enactment of this subsection, for each fiscal year in which the State allows a license plate described in paragraph (1) and issued by the State before the first fiscal year referred to in that paragraph to be displayed on a motor vehicle registered in the State.”