The paper describes the functional concepts of an intelligent vehicle highway system which is a subset of future applications of advanced technology to transportation. This subset is operationally oriented. The paper describes the relationship of the State of Texas to the Mobility 2000 group, including several related efforts in Texas to utilize advanced technology to improve safety and mobility. One specific advanced technology project, sponsored by the State Department of Highways and Public Transportation, the Federal Highway Administration and the National Highway Traffic Safety Administration is described in detail. The technical task to develop algorithms for “real time” optimization of traffic signal systems. The technical task is for the development of a vehicle which is capable of braking and steering via inputs from video cameras. This system could be the basis of a collision avoidance system in a vehicle that did not emit either laser light or radar.The final section describes the outlook for the development of an advanced transportation technology initiative in the United States, including current efforts for Congressional action.