
The bill required that all states create a maximum speed limit of 55 m.p.h. or they would not receive funds from the federal government for their highways. Each state had 60 days to lower the speed limit before it would lose their money. The bill indicated that the speed limit requirement would only remain effective until June 30th, 1975. The president had the option of moving the state to an earlier time contingent upon fuel shortages in the United States. With this bill, Richard Nixon also signed a railroad bill that allowed the merging of several prominent railroads. This action was meant to revamp the railroad freight System in the United States and to save money on fuel. Speed limit signs all over the country had to be changed from 60, 65, 70, and 75 m.p.h. to 55.