How States and Territories Fund Transportation: An Overview of Traditional and Nontraditional Strategies

This report provides states with an overview of traditional funding mechanisms, profiles of new and innovative programs at work in the United States and overseas, and a summary of each state’s surface transportation funding approaches.


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Overview

The nation’s transportation system faces many pressures, including a growing imbalance between system use and system capacity, erosion of traditional funding sources, greater infrastructure costs, and shrinking sources of credit resulting from the current economic crisis. In response, states and territories are actively exploring how they can make better use of existing and new approaches to fund and finance transportation. This report provides states with an overview of traditional funding mechanisms, profiles of new and innovative programs at work in the United States and overseas, and a summary of each state’s surface transportation funding approaches. The report covers state-driven mechanisms only and is meant to help states identify strategies to consider in addressing their revenue needs alongside federal and local approaches.