What’s happening: Several states are preparing to tackle long-term transportation funding shortfalls during the 2025 legislative session. Among them:

  • Maine lawmakers are considering a variety of options while facing a projected $280 million transportation fund deficit by fiscal year 2027, about a quarter of the agency’s highway and bridge capital spending.
  • Policymakers in Indiana are seeking to prevent a transportation funding ‘cliff,’ projected to be reached by 2030 unless new recurring revenue is approved.
  • While Maryland lawmakers approved new revenue in the last session, the transportation agency is still projecting a significant shortfall that has legislators evaluating several other recurring funding options.
  • The Tennessee Department of Transportation is requesting an additional $308 million in the next fiscal year to keep projects on track amidst growing maintenance and construction costs.
  • Transportation funding will be a priority for Michigan lawmakers when they return to the capital after failing to reach a compromise during the last session’s heating ending.
  • Building on last year’s statewide awareness campaign, Oregon lawmakers will take the public input they received and begin work on a transportation funding package, which is updated approximately every eight years and was last approved in 2017.
  • A Washington State transportation revenue forecast released September 2024 showed a growing shortfall, with a gap of $704 million for the 2025-29 period.
  • Nebraska Department of Transportation Director Vicki Kramer warned that the agency is facing a nearly $150 million annual shortfall in meeting the state’s transportation infrastructure needs.
  • Facing flat revenue, increased construction costs, and pressing bond repayments, New Hampshire lawmakers with the help of a special commission are searching for a long-term revenue solution.
  • Findings from a Massachusetts transportation task force are expected to be released on Jan. 14, including a recommendation to increase the transportation department’s share of revenue from the state’s “millionaire’s tax” for bond financing.

Dig Deeper: Legislative sessions across the country begin as early as this week. Follow the ARTBA-TIAC legislative dashboard to see which states are introducing and approving new revenue.