Transportation Funding & Financing

Governors and states have long recognized the importance of investing in surface transportation. When operated efficiently, the surface transportation system can enhance the economic competitiveness of states and the nation, as well as increase safety and the quality of life for users. However, the nation’s transportation system faces many pressures, including a growing imbalance between system use and capacity, the erosion of traditional funding sources, increasing costs for the construction and maintenance of infrastructure and shrinking sources of credit during difficult economic times. States are exploring a variety of new and innovative funding and financing methods, while at the same time looking to maximize the effectiveness of traditional sources.

To help states with transportation funding and financing issues and challenges, the NGA Center:

  • Monitors and evaluates funding and financing challenges and policy responses across the states;
  • Disseminates information through publications, conferences, and workshops to accelerate the adoption of the most effective policy tools and best practices; and
  • Provides governors and their policy advisors with targeted research and analysis on existing financial mechanisms as well as innovative new tools.

The NGA Center has also assisted states in exploring several funding and financing options, including debt financing (state infrastructure banks), a variety of user fees, public-private partnerships and strategies specifically designed for freight.

Recent activities include the State Resource Center on Innovative Infrastructure Strategies.