The vehicular ad hoc network (VANET) has been identified as one of the most promising technologies for managing future intelligent transportation systems. This paper proposes a distributed transmission power adjustment algorithm for communication congestion control and awareness enhancement to address communication congestion problems that can arise in VANETs. The objective of the proposed algorithm is to provide maximum awareness of surrounding vehicles' status while maintaining a communications channel load below the allowed threshold. The proposed algorithm accomplishes this by adjusting the transmission range of each vehicle in the network progressively and gradually, while monitoring the communications channel load of each vehicle. By changing the transmission range of a vehicle little by little according to the communications channel load of its neighboring vehicles, the algorithm finds the optimal transmission range that provides maximum awareness without resulting in communications congestion. In addition, the proposed algorithm appropriately controls the channel load in a fair manner without sacrificing awareness of specific vehicles in the congested situation. This allows nearby vehicles to obtain more peripheral information to help them stay away from potential hazards and maintain safety. The proposed algorithm was implemented in a simulation environment, and its performance was validated in various traffic scenarios. The simulation results show that the proposed algorithm can deal with communication congestion by controlling the transmission power fairly to a target threshold in various traffic situations.