Taken together, all levels of government spent $101.3 billion for highways in 1997. The Federal Government funded $21.1 billion (20.8 percent). States funded $52.7 billion (52.1 percent). Counties, cities and other local government entities funded $27.5 billion (27.1 percent).

Highway-user revenues—the total amount generated from motor-fuel taxes, motor-vehicle fees, and tolls—were $89.9 billion in 1997. Of this, $64.7 billion was spent on highways. This represented 60.8 percent of total revenues generated for highways in 1997 (including amounts placed in reserves for expenditure in future years). Highway-user revenues would have been sufficient to cover 88.8 percent of all highway expenditures if the full amount had been used for highways.

Total highway expenditures increased 8.3 percent between 1995 and 1997. Highway spending rose faster than inflation over this period, growing 2.0 percent in constant dollar terms. Since a low point in 1981, highway spending has grown 50.2 percent in constant dollars. Expenditures for highway law enforcement and safety have been growing faster than other types of highway expenditures.

Capital outlay grew to $48.7 billion in 1997, a 10.2 percent increase since 1995. Federal funds accounted for $20.0 billion, or 41.1 percent of total capital outlay. Since 1987, the Federal share has remained in a range from 41 to 46 percent.

Approximately $23.2 billion of capital funds (27.2 percent) were used for system preservation; $7.6 billion went for new roads and bridges; $14.0 billion went for adding new lanes to existing roads; and $3.9 billion went for system enhancements, such as safety, operational or environmental improvements.