What’s happening: State transportation officials nationwide are assessing their agencies’ short- and long-term funding needs following the Nov. 15 enactment of the Infrastructure Investment and Jobs Act (IIJA).

Why it matters: While the new law will deliver record levels of federal support for state transportation programs, many states are emphasizing they still have work to do to meet their highway and bridge needs:

California, which will receive $45.5 billion from the IIJA – the largest share of any state – is putting the new funding into perspective. Its per capita share of IIJA funding is among the lowest in the nation, only $1,200 per Californian. The IIJA resources, while impactful, will still fall short of what’s needed to restore California’s roads.

Connecticut is due to receive nearly $5.4 billion in direct funding from the IIJA. Gov. Ned Lamont (D) stated he would not pursue proposals to add tolls to state highways, reversing previous support for the plan. Connecticut needs an estimated $1 billion in additional funding to match federal funds. Gov. Lamont promised Connecticut would be able to meet its short-term obligations as higher fuel costs raise state gas tax revenue more than expected. A new mileage tax on heavy trucks will also raise an additional $90 million annually beginning in 2023, according to the Connecticut Office of Fiscal Analysis.

Oregon is planning to move ahead with revenue-raising measures despite the IIJA funds. The Oregon Department of Transportation (ODOT) said it will add tolls on some bridges because the IIJA money is not enough to pay for projects. The I-205 project, for example, is estimated to cost about $700 million while Oregon is only receiving $400 million in flexible IIJA funding.

Nevada is also focusing on its long-term funding needs. A Nevada Department of Transportation (NDOT) official emphasized that while the IIJA provides historic funding for the state – an additional $83.5 million over the next year, a 21 percent increase – more revenue will still be needed in the future.

The IIJA will provide about $10 billion to Michigan over the next five years, but state officials are warning that more funding is needed to maintain the state’s infrastructure programs. A Michigan Infrastructure and Transportation Association official said the state still faces a $2 billion annual shortfall to maintain its road and bridge programs.

Massachusetts Bay Transportation Authority (MBTA) and the Massachusetts Department of Transportation (MassDOT) officials are still reviewing the new infrastructure law. They caution that even with the new money, the two agencies will face funding shortages starting in 2023. A Massachusetts Taxpayer Foundation report concluded MBTA will need an additional $1.25 billion in new annual revenue.

West Virginia officials are reviewing how the roughly $6 billion in IIJA funds will impact the state. They say that while money is significant, it won’t cover the estimated $750 million a year needed to repair the state’s deteriorating roads and bridges.

South Carolina Secretary of Transportation Christy A. Hall released a statement about the IIJA’s impact on the state. She said new federal funding levels fit well into SCDOT’s 10-year infrastructure plan, which includes baseline funding from the IIJA. The law will also give the state an estimated $250 million a year above baseline funding levels. Additionally, because of higher federal funding, Hall says “South Carolina will need to dedicate an additional $100-200 million annually in matching funds in order to ensure our state does not leave any federal funds on the table.

Maine Gov. Janet Mills (D) recently touted the nearly $2.4 billion the state will receive from the IIJA. However, a spokesperson with the American Association of State Highway and Transportation Officials warned that rising material costs could offset the funding increase Maine will receive. Maine Transportation Commissioner Bruce Van Note also spoke on rising costs, stating that he doesn’t blame contractors for placing higher than expected bids on projects.

What’s next: ARTBA and TIAC will monitor and provide updates as states continue to plan how they will appropriate the newly acquired federal money provided by the IIJA.

Click here for a detailed state-by-state breakdown of IIJA’s economic impacts.