Public officials in at least three states have presented plans to cut transportation spending in the next fiscal year.

Colorado legislators on March 31 proposed a $64 million cut from the State Highway Fund in the 2025-2026 fiscal year and another $50 million the following year. These reductions are a result of the state’s Taxpayer’s Bill of Rights (TABOR), which limits the amount of revenue the government is permitted to spend and refunds excess revenue to taxpayers. Because the state also agreed to spend approximately $100 million annually on transportation in the 2021 transportation funding legislation, Colorado lawmakers are pledging to return the unfunded spending back to the department by 2033.

  • Update April 22: Lawmakers approved legislation that cuts more than $114 million over two years earmarked for transportation.

The Florida House 2025-2026 fiscal year budget proposal on April 2 offsets a potential sales tax decrease with reductions to various government services, including a possible $2 billion cut to the transportation department’s “Moving Florida Forward” program. The plan, championed by Gov. Ron DeSantis (R) and approved in 2023, dedicates $4 billion in general fund surplus to advance transportation construction. The Senate proposal does not include this decrease. An agreement between the two chambers needs to be finalized by April 29 to be completed by the end of the regular legislative session.

The Vermont Agency of Transportation’s proposed paving budget for fiscal year 2025-2026 will cover 125 miles of state-owned roads, a 45 percent decrease from the previous year’s plan. Transportation Secretary Joe Flynn attributed the decrease to rising construction costs and stagnant transportation revenue. While vehicle sales tax revenue has increased, the transportation department only receives a third of that money, and gas tax revenue in the state has declined.

View the ARTBA-TIAC State Legislation dashboard for live updates of transportation funding measures, follow the blog for new state and local developments, and join the 12th Annual National Workshop for State & Local Transportation Advocates to discuss these and future efforts to increase transportation funding.