Our Nation’s Highways 2026

Funding and Spending

Funding the construction and operation of the United States’ extensive network of over 4.2 million miles of public roads requires substantial financial commitment. Revenue for highway, bridge, and tunnel expenditures is generated by Federal, State, and local governments for construction, replacement, rehabilitation, maintenance, and other capital outlays. Highway user fees and taxes, along with other revenue streams, provide these funds. In 2024, total government revenue dedicated to highways reached $325 billion. Expenditures in the same year totaled $332 billion. When spending exceeds revenue, as it did in 2024, governments cover the difference by drawing from highway reserve accounts. Based on an estimated 2024 population of 339 million, the United States’ highway expenditure was $840 per person.

Drive Through History

July 11, 1916
President Woodrow Wilson signs the Federal Aid Road Act. The landmark legislation, promoted by the national Good Roads movement, marks the first time that the Federal Government has provided assistance for State highway costs. The 1916 Act is the forerunner of much more Federal highway assistance.

Table 7-1 shows the change in funding (receipts) and spending (expenditures) by Federal, State, and local governments over time. In 1970, the U.S. raised $22 billion with 54 percent ($12 billion) by State governments, 28 percent ($6 billion) by the Federal government, and 18 percent ($4 billion) by local governments. By 2024, the $325 billion of funding comprised 55 percent ($177 billion) from States, 29 percent ($94 billion) from local governments, and 16 percent ($54 billion) from the Federal Government. Over this 54-year period, funding grew by 5 percent per year. State funding generally increased year-over-year and was the largest funding source across all years. During this same period, local governments surpassed the Federal Government as the second largest funding source. While Federal funding was greater than local funding from 1970 through 1979, local funding was greater from 1980 on except for four years (1984, 2010, 2016, and 2022). In those years, the Federal Government provided one-time increases in transportation funding.

Highway spending across the three levels of government shows a different pattern. In 1970 the U.S. spent $21 billion with 68 percent ($14 billion) by State governments, 30 percent ($6 billion) by local governments, and 2 percent (less than $1 billion) by the Federal Government. By 2024 the $332 billion in spending comprised 62 percent ($206 billion) by States, 36 percent ($121 billion) by local governments, and 2 percent ($5 billion) by the Federal Government. Over this period, State and local government expenditures grew by 5 percent each year, and Federal expenditures showed a slower growth rate of 4 percent. Direct Federal spending was much smaller than spending by State and local governments. State and local expenditures include direct transfers and Federal-aid reimbursements. Federal expenditures, however, only include the amount that Federal agencies expended on their own roads, and they do not include funds transferred to State and local governments. In 2024, for example, the Federal Government provided $64 billion in intergovernmental payments to State and local governments for highways. As State and local governments spent $327 billion on highways, the Federal transfers and reimbursements accounted for about 20 percent.

Highway Funding and Expenditures, 1970-2024

Table 7-1: Highway Statistics Series

Year	State Expenditures (in billions)	State Receipts (in billions)	Local Expenditures (in billions)	Local Receipts (in billions)	Federal Receipts (in billions)	Federal Expenditures (in billions)
1970	$14	$12	$6	$4	$6	$0.4
1971	$15	$13	$7	$4	$7	$0.5
1972	$16	$14	$7	$5	$6	$1
1973	$16	$14	$8	$5	$7	$1
1974	$17	$14	$9	$5	$8	$1
1975	$18	$15	$10	$6	$8	$1
1976	$18	$16	$10	$7	$8	$1
1977	$18	$17	$11	$7	$9	$1
1978	$20	$18	$12	$8	$10	$1
1979	$23	$19	$13	$9	$11	$1
1980	$26	$20	$15	$10	$10	$1
1981	$25	$21	$16	$11	$10	$1
1982	$25	$22	$17	$12	$10	$1
1983	$27	$24	$18	$12	$12	$1
1984	$30	$27	$20	$13	$15	$1
1985	$35	$31	$22	$16	$15	$1
1986	$38	$32	$24	$18	$15	$1
1987	$40	$33	$25	$18	$14	$1
1988	$42	$34	$26	$19	$16	$1
1989	$43	$37	$27	$20	$16	$1
1990	$46	$40	$29	$21	$14	$1
1991	$47	$41	$31	$22	$18	$1
1992	$51	$46	$32	$23	$18	$1
1993	$53	$47	$32	$24	$18	$1
1994	$56	$48	$33	$26	$18	$1
1995	$57	$50	$34	$26	$20	$1
1996	$60	$53	$37	$27	$23	$2
1997	$62	$58	$39	$28	$22	$1
1998	$66	$59	$40	$28	$25	$1
1999	$71	$63	$45	$32	$26	$1
2000	$78	$66	$47	$34	$31	$2
2001	$82	$69	$46	$36	$28	$2
2002	$86	$72	$49	$38	$28	$2
2003	$88	$70	$53	$40	$30	$2
2004	$88	$73	$56	$42	$31	$3
2005	$94	$78	$56	$44	$33	$2
2006	$100	$84	$59	$48	$34	$2
2007	$105	$105	$64	$52	$35	$2
2008	$114	$98	$65	$53	$42	$3
2009	$123	$100	$70	$54	$41	$3
2010	$127	$109	$75	$53	$59	$4
2011	$126	$105	$76	$61	$39	$4
2012	$133	$106	$85	$67	$43	$3
2013	$131	$109	$83	$66	$41	$3
2014	$142	$121	$94	$76	$55	$3
2015	$142	$120	$91	$78	$43	$3
2016	$138	$116	$76	$55	$92	$5
2017	$141	$119	$83	$68	$38	$5
2018	$151	$127	$91	$70	$41	$3
2019	$159	$146	$96	$71	$44	$4
2020	$161	$142	$97	$72	$43	$3
2021	$157	$144	$101	$71	$57	$3
2022	$160	$148	$102	$75	$141	$3
2023	$179	$158	$103	$75	$51	$3
2024	$206	$178	$121	$94	$54	$5

Highway Revenue

Of the $54 billion Federal revenues used for highways in 2024, 77 percent came from the Highway Trust Fund (HTF) highway account. The HTF has provided a Federal-funding source for highway programs since Congress established it in 1956. Its revenue comes from Federal sales taxes on motor fuel, trucks, and tires, and a heavy vehicle use tax, which have changed several times since the HTF was established. Since 1997, the Federal tax rate has been 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel. (Alternative fuels such as liquified petroleum gas, liquified natural gas, and compressed natural gas also are subject to fuel taxes). Tires have a 9.45 cents sales tax for each 10 pounds of the maximum rate load capacity over 3,500 pounds. A 12 percent sales tax applies to tractors, trucks, and buses over 33,000 pounds gross vehicle weight (GVW) and trailers over 26,000 GVW. The heavy vehicle use tax, which applies to trucks with 55,000 or more pounds GVW, is an annual vehicle tax on a sliding scale from $100 to $550 based upon weight.

Table 7-2 shows the change in the level and composition of the HTF revenue from 1970 until 2024. In 1970, HTF revenue was $5.5 billion with roughly two-thirds ($3.7 billion) collected from motor fuels taxes. By 2024, the HTF revenue grew to $41 billion with roughly two-thirds still from motor fuel taxes. Revenue included $30 billion from motor fuel taxes ($21 billion from gasoline and $9 billion from diesel and special fuels), $8 billion from other excise taxes (less than $1 billion from tire sales, $7 billion from truck, bus, and trailer sales, and $1 billion from the Heavy Vehicle Use Tax), and $3 billion from miscellaneous sources such as fines, penalties, and interest income. The annual growth rate for HTF revenue was 4 percent. The growth rates were 4 percent for motor fuel taxes and 3 percent for other excise taxes. However, the rate of change was not constant. Motor fuel tax revenue rose slowly in the 1970s, rose rapidly in the 1980s and 1990s, and has risen less rapidly since 2000. Motor fuel revenue sometimes exhibits fluctuations, such as in 1999, due to legislative and resulting accounting changes. Also, 2023 and 2024 were unusual years in that other income topped $4 billion when in most years it was $1 billion or less.

Highway Trust Fund Receipts, 1970-2024

Table 7-2: Highway Statistics Series

Year	Motor Fuel Taxes (millions)	Other Excise Taxes (millions)	Other Income (millions)
1970	$3,693	$1,661	$115
1971	$3,934	$1,607	$184
1972	$3,893	$1,429	$206
1973	$4,159	$1,507	$247
1974	$4,301	$1,959	$415
1975	$4,340	$1,848	$586
1976	$4,219	$1,195	$587
1977	$4,707	$2,002	$593
1978	$4,722	$2,182	$662
1979	$4,834	$2,354	$857
1980	$4,420	$2,200	$1,027
1981	$4,450	$1,855	$1,129
1982	$4,714	$2,030	$1,079
1983	$6,530	$1,247	$1,076
1984	$9,169	$1,338	$1,027
1985	$9,812	$1,988	$1,106
1986	$10,254	$1,997	$1,054
1987	$10,158	$1,635	$934
1988	$10,647	$2,189	$809
1989	$12,195	$2,163	$776
1990	$10,522	$1,950	$981
1991	$12,514	$1,980	$810
1992	$13,913	$1,751	$908
1993	$13,912	$2,134	$817
1994	$13,899	$2,351	$754
1995	$15,743	$3,086	$548
1996	$18,883	$3,151	$658
1997	$17,773	$2,736	$805
1998	$19,838	$3,303	$1,166
1999	$29,782	$4,040	$2
2000	$25,663	$4,684	$0
2001	$24,475	$2,441	$1
2002	$25,383	$2,599	$1
2003	$25,909	$3,053	$3
2004	$26,548	$3,237	$0
2005	$28,344	$4,550	$15
2006	$28,162	$5,511	$29
2007	$28,989	$5,281	$19
2008	$28,453	$2,871	$21
2009	$26,969	$3,167	$27
2010	$27,383	$2,767	$30
2011	$28,739	$3,222	$38
2012	$29,149	$5,994	$98
2013	$27,153	$4,647	$15
2014	$29,029	$5,037	$21
2015	$29,535	$6,205	$26
2016	$30,131	$5,932	$211
2017	$30,899	$4,799	$316
2018	$31,141	$6,124	$570
2019	$31,117	$7,149	$718
2020	$30,148	$6,921	$252
2021	$32,166	$5,767	$112
2022	$33,775	$6,931	$747
2023	$28,126	$9,232	$4,287
2024	$29,232	$8,263	$4,458

Toll revenue is typically the only funding source used to repay money borrowed to build a toll facility and to provide for its maintenance and operations. Of the $327 billion State and local revenues used for highways in 2024, 8 percent came from tolls. In 2023, the most recent data available for State and local toll collections, State and local governments raised $30 billion in toll revenue. Of this, State tolls accounted for 84 percent ($25 billion), and local tolls accounted for 16 percent ($5 billion). State and local combined toll revenue have generally increased with a growth rate of 3 percent from 2005 through 2023. However, there is significant year to year variation. State tolls grew from $15 billion in 2005 to a high of $31 billion in 2019 before declining. Local tolls generally increased over this period with the highest value ($8 billion) in 2022. As seen in the chapter on roads, the total mileage for toll facilities in the U.S., including bridges and tunnels, increased from 5,746 miles in 2013 to 6,626 miles in 2023. The total increase is 15 percent or 88 additional miles per year.

Toll Facility Revenue, 2005-2024

Table 7-3: Highway Statistics Series

Year	State Revenue (in billions)	Local Revenue (in billions)
2005	$14.6	$3.6
2006	$14.2	$3.3
2007	$19.3	$3.7
2008	$23.4	$6.4
2009	$16.3	$4.5
2010	$23.4	$4.9
2011	$22.4	$4.4
2012	$19.4	$4.2
2013	$25.0	$4.6
2014	$27.1	$4.3
2015	$24.7	$4.5
2016	$25.7	$5.1
2017	$30.6	$6.9
2018	$28.1	$6.5
2019	$30.8	$5.3
2020	$26.1	$6.1
2021	$24.2	$7.4
2022	$23.8	$7.7
2023	$25.3	$4.7
2024	$22.4

In 2024, capital outlays accounted for the largest category of spending, totaling $159 billion (49 percent of total highway spending). Capital outlays include costs associated with land acquisition; roadway design, construction, reconstruction, resurfacing, rehabilitation, and restoration; and installation of guard rails, fencing, signs, and signals. Maintenance costs totaled $78 billion (24 percent). Administration, enforcement, and bond interest totaled $71 billion (21 percent); service costs associated with debt retirement for highway projects totaled $24 billion (6 percent). Disbursements have increased substantially since 1970 with similar growth across all four categories. The category containing Administration, Highway Law Enforcement, and Bond Interest grew by 6 percent annually, and the other categories grew by 5 percent a year.

Total Disbursements for Highways, 1970-2024

Table 7-4: Highway Statistics Series

Year	Capital Outlay (billions)	Maintenance (billions)	Administration, Highway Law Enforcement, and Bond Interest (billions)	Debt Retirement (billions)
1970	$12	$5	$3	$1
1971	$12	$5	$4	$1
1972	$12	$5	$4	$1
1973	$12	$6	$5	$1
1974	$13	$7	$5	$1
1975	$14	$7	$6	$1
1976	$14	$8	$6	$2
1977	$13	$9	$6	$1
1978	$15	$10	$7	$1
1979	$18	$11	$8	$1
1980	$20	$11	$8	$1
1981	$20	$12	$9	$1
1982	$19	$13	$9	$2
1983	$20	$14	$10	$2
1984	$23	$15	$10	$2
1985	$27	$17	$12	$2
1986	$29	$18	$13	$3
1987	$31	$18	$14	$3
1988	$33	$19	$14	$3
1989	$33	$19	$15	$3
1990	$35	$20	$17	$3
1991	$36	$20	$18	$3
1992	$38	$22	$19	$3
1993	$40	$23	$20	$4
1994	$42	$24	$20	$5
1995	$44	$24	$20	$4
1996	$47	$26	$21	$5
1997	$48	$27	$22	$5
1998	$52	$27	$22	$5
1999	$57	$30	$17	$5
2000	$61	$31	$26	$5
2001	$66	$32	$27	$5
2002	$69	$34	$29	$7
2003	$70	$35	$31	$7
2004	$70	$36	$33	$8
2005	$75	$38	$32	$8
2006	$79	$40	$34	$8
2007	$81	$46	$37	$8
2008	$91	$45	$29	$8
2009	$95	$49	$42	$10
2010	$100	$49	$44	$12
2011	$102	$46	$45	$14
2012	$105	$48	$45	$23
2013	$103	$49	$45	$19
2014	$105	$52	$48	$33
2015	$107	$52	$49	$28
2016	$107	$50	$48	$14
2017	$105	$56	$53	$15
2018	$117	$59	$48	$16
2019	$121	$62	$48	$21
2020	$128	$61	$55	$17
2021	$129	$62	$54	$16
2022	$128	$64	$57	$17
2023	$139	$67	$61	$19
2024	$159	$78	$71	$24

Spending on highways tracks closely with population levels. The States with the largest disbursements for highways also have the largest populations. The five largest States were California, Texas, Florida, New York, and Pennsylvania. California spent $14 billion, Texas $22 billion, Florida $12 billion, New York $8 billion, and Pennsylvania $8 billion. These amounts were significantly more than the median value of $2.2 billion. Together, these five States accounted for more than one-third (37 percent) of State highway disbursements.

State Disbursements for Highways, 2024

Table 7-5: Highway Statistics Series

State	Disbursement (in billions)
Alabama	$1.660
Alaska	$1.146
Arizona	$2.097
Arkansas	$2.034
California	$13.730
Colorado	$2.220
Connecticut	$1.879
Delaware	$1.736
Florida	$12.041
Georgia	$4.253
Hawaii	$0.290
Idaho	$1.184
Illinois	$6.024
Indiana	$3.870
Iowa	$1.981
Kansas	$1.957
Kentucky	$2.509
Louisiana	$2.503
Maine	$1.007
Maryland	$3.606
Massachusetts	$3.183
Michigan	$3.611
Minnesota	$2.446
Mississippi	$1.198
Missouri	$2.806
Montana	$1.152
Nebraska	$1.209
Nevada	$1.714
New Hampshire	$0.578
New Jersey	$4.813
New Mexico	$1.278
New York	$7.511
North Carolina	$6.883
North Dakota	$0.785
Ohio	$4.127
Oklahoma	$3.469
Oregon	$1.530
Pennsylvania	$7.752
Rhode Island	$0.700
South Carolina	$2.998
South Dakota	$1.032
Tennessee	$2.818
Texas	$21.777
Utah	$1.920
Vermont	$0.638
Virginia	$5.983
Washington	$4.722
West Virginia	$2.358
Wisconsin	$2.104
Wyoming	$0.746

States not only vary in how much they spend; they also vary by how they spend the money. Nationally, 63 percent was for capital outlays, 20 percent for maintenance and traffic services, 10 percent for administration and research, and the remaining 7 percent for enforcement and safety. Capital outlays represented the largest expenditure category in all States except Massachusetts, and the capital outlays accounted for more than 80 percent of spending in Idaho and North Dakota. At the other end of the spectrum, Massachusetts and Vermont only spent 36 percent on capital outlays. Massachusetts spent the largest proportion, 44 percent, on maintenance and traffic services, and four other States spent more than 30 percent. One State, Delaware, spent more than 30 percent on administration and research (34 percent), and another six States spent 20 percent or more. One State, California, spent more than 20 percent on enforcement and safety (23 percent).

State Disbursements for Highways by Type, 2024

Table 7-6: Highway Statistics Series

State	Capital Outlay	Maintenance & Traffic Services	Administration & Research	Enforcement & Safety
Alabama	65%	2%	27%	5%
Alaska	75%	14%	6%	5%
Arizona	60%	9%	28%	3%
Arkansas	79%	11%	5%	5%
California	51%	20%	6%	23%
Colorado	70%	17%	11%	1%
Connecticut	74%	19%	5%	2%
Delaware	39%	20%	34%	7%
Florida	71%	20%	5%	5%
Georgia	63%	17%	11%	9%
Hawaii	63%	18%	14%	5%
Idaho	81%	14%	3%	2%
Illinois	76%	15%	7%	2%
Indiana	67%	28%	4%	1%
Iowa	71%	13%	7%	9%
Kansas	72%	12%	8%	7%
Kentucky	71%	24%	2%	3%
Louisiana	73%	23%	2%	1%
Maine	65%	25%	5%	4%
Maryland	58%	16%	8%	17%
Massachusetts	36%	44%	13%	6%
Michigan	69%	14%	4%	13%
Minnesota	57%	22%	12%	9%
Mississippi	80%	13%	4%	3%
Missouri	62%	23%	3%	12%
Montana	61%	19%	14%	6%
Nebraska	67%	17%	9%	7%
Nevada	61%	13%	17%	8%
New Hampshire	49%	24%	24%	3%
New Jersey	61%	21%	5%	14%
New Mexico	60%	11%	28%	1%
New York	49%	34%	11%	7%
North Carolina	59%	31%	7%	3%
North Dakota	85%	6%	4%	5%
Ohio	60%	13%	13%	14%
Oklahoma	54%	28%	10%	8%
Oregon	59%	20%	13%	7%
Pennsylvania	60%	25%	9%	6%
Rhode Island	67%	22%	4%	6%
South Carolina	73%	21%	6%	1%
South Dakota	69%	11%	15%	4%
Tennessee	57%	20%	22%	2%
Texas	71%	12%	11%	5%
Utah	74%	12%	5%	9%
Vermont	36%	31%	19%	14%
Virginia	52%	32%	11%	5%
Washington	60%	9%	21%	10%
West Virginia	68%	23%	7%	2%
Wisconsin	67%	16%	12%	6%
Wyoming	69%	18%	6%	7%

States also vary by their payments into the HTF versus their apportionments from it. In 2024, Texas reported the largest payment into the fund at $4.6 billion. California was second at $3.2 billion, and Florida was third at $2.1 billion. These three States accounted for about one-quarter (27 percent) of the payments into the HTF. No other State contributed more than $2 billion, but seven additional States contributed more than $1 billion. These ten States contributing the most money comprise one-half (50 percent) of the total payments. Regarding apportionments and allocations from the HTF, Texas and California both received more than $5 billion ($5.5 billion in both States). Florida received about $3 billion, and three additional States received over $2 billion. These six States accounted for about one-third (36 percent) of the total apportionments and allocations from the HTF.

When comparing payments to spending, every State had larger apportionments and allocations than payments, meaning that they received more than they paid into the HTF. The lowest ratio of apportionments and allocations to payments is for Colorado at 1.2. Most State ratios fall between 1 and 2. However, ten States and the District of Columbia had ratios greater than 2. The largest ratio was 11.3 for the District of Columbia followed by 6.2 for Alaska and 6.1 for Vermont. Three other States had ratios between 3 and 4 (Hawaii, Montana, and Rhode Island), and five States had ratios between 2 and 3 (Connecticut, Delaware, North Dakota, South Dakota, and Wyoming).

Trust Fund Apportionments and Trust Fund Payments, 2024

Table 7-7: Highway Statistics Series

State	Payments (in billions)	Apportionments (in billions)
Alabama	$0.8	$1.1
Alaska	$0.1	$0.7
Arizona	$0.8	$1.1
Arkansas	$0.5	$0.8
California	$3.2	$5.5
Colorado	$0.6	$0.8
Connecticut	$0.3	$0.7
Delaware	$0.1	$0.3
Dist. of Columbia	$0.0	$0.2
Florida	$2.1	$3.0
Georgia	$1.4	$1.8
Hawaii	$0.1	$0.3
Idaho	$0.3	$0.4
Illinois	$1.2	$2.0
Indiana	$0.9	$1.4
Iowa	$0.5	$0.7
Kansas	$0.4	$0.5
Kentucky	$0.6	$0.9
Louisiana	$0.6	$1.0
Maine	$0.2	$0.3
Maryland	$0.6	$0.9
Massachusetts	$0.5	$0.9
Michigan	$1.0	$1.5
Minnesota	$0.6	$1.0
Mississippi	$0.5	$0.7
Missouri	$0.9	$1.4
Montana	$0.2	$0.6
Nebraska	$0.3	$0.4
Nevada	$0.3	$0.5
New Hampshire	$0.1	$0.2
New Jersey	$0.8	$1.4
New Mexico	$0.4	$0.5
New York	$1.4	$2.4
North Carolina	$1.2	$1.5
North Dakota	$0.2	$0.4
Ohio	$1.3	$1.9
Oklahoma	$0.6	$0.9
Oregon	$0.5	$0.8
Pennsylvania	$1.3	$2.4
Rhode Island	$0.1	$0.3
South Carolina	$0.8	$1.0
South Dakota	$0.2	$0.4
Tennessee	$0.9	$1.2
Texas	$4.6	$5.5
Utah	$0.4	$0.5
Vermont	$0.1	$0.4
Virginia	$1.1	$1.5
Washington	$0.6	$1.0
West Virginia	$0.3	$0.6
Wisconsin	$0.7	$1.1
Wyoming	$0.2	$0.4