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FHWA Bulletin

Office of Highway Policy Information | Federal Highway Administration

Subject: Highway Funding 1998 - 2001

Date: March 6, 2001

Total disbursements for highways are expected to be $126.2 billion in 2001, an increase of almost 17 percent over 1998, which is the latest year for which final numbers are available. Total revenues used for highways or placed in reserves for highways are expected to reach $128 billion in 2001. The difference ($1.8 billion) is due to changes in the amount total reserve -$2.4 billion placed in reserve by the Federal government and $.6 billion drawn from reserve by State and Local governments.

Total highway-user revenues of $106.2 billion (motor fuel, motor vehicle taxes and fees and tolls) are anticipated in 2001, which would fund about 84 percent of all highway disbursements. However, $12.8 billion of highway-user revenues are destined for general government use, collection expenses and other non-highway uses, while $11.6 billion will be used for mass transportation. Consequently, only $81.8 billion or 77 percent of taxes and fees charged to road users are expected to be applied to the highway programs of Federal, State and local governments. While some highway-user revenues will be expended for non-highway purposes, conversely governments at all levels will apply a variety of non-user revenues for highway purposes. Non-user revenue sources include general funds, other specific taxes and fees dedicated to highway purposes, investment income, and bond proceeds.

TEA-21 provided a significant increase in Federal funds for highway and mass transit capital programs. Capital expenditures are expected to rise to $64.8 billion in 2001, accounting for over 51 percent of total highway expenditures. This is an increase of $12.5 billion, or almost 24 percent compared to 1998. State governments will be responsible for approximately 75 percent of the total, with capital expenditures of $48.3 billion.

Based upon the latest available data, 30 percent of the State government capital expenditures are projected to be for projects on the Interstate system, and 40 percent are projected to be used on other principal arterials. An additional 20 percent is projected to be expended for projects on other arterial and collectors, while 10 percent is expected to be used for local roads. Of the amount expended by States on all arterials and collectors, 16 percent is expected to be used for new roads and bridges, 31 percent for other capacity improvements, 46 percent for system preservation, and 7 percent for operational and safety-related improvements.

Total funding for highways including receipts, intergovernmental payments, and disbursements for the years 1998 through 2001 are shown in the attached Table HF-10B.

Projected highway expenditures for 2001 are summarized as follows:

  Billions Percent
Highway Capital Outlay
Highway Maintenance / Operation
Administration and Research
Law Enforcement and Safety
Bond Retirements
$ 5.2
$ 126.2

For more information, email us or phone 202-366-0170.


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