On July 6, 2012 President Obama signed a new transportation bill, Moving Ahead for Progress in the 21st Century (MAP-21), which will sustain the Highway Trust Fund and provide states and communities with two years of steady funding to build needed roads, bridges and transit systems.
 
Although the National Scenic Byway Program was not eliminated, and the designation program still exists within the Federal Highway Administration, there is no direct funding or grant program in the new bill for scenic byways.  It appears there is some funding eligibility for byways under the new Transportation Alternatives (TA) program, however, the extent of that eligibility is not yet clear. 

It is expected that decisions for use of TA funds will be made at the state level.  A bit of good news: it appears that projects eligible for TA funds under "community improvement activities" includes the "inventory, control, or removal of outdoor advertising."

As we learn more, Scenic America will keep you informed of how the new transportation bill will affect the issues we care about, including scenic byways and billboard control.  For now, the Department of Transportation has set up a website for the new bill that includes a link to its full text