State funding report reveals $2.5B for transportation initiatives and highway systems construction

The Utah Transportation Commission convened on March 27, 2025, to provide an update on state funding and the Statewide Transportation Improvement Program (STIP). The meeting began with a high-level overview of the funding sources that support transportation initiatives in Utah.

The primary source of funding is the Transportation Investment Fund (TIF), which accounts for approximately 50% of the total funding. Following this, the Transportation Fund contributes about 25%, while federal funds make up around 18%. Additional funding comes from newer TIF-related sources, including the Transit Transportation Investment Fund (TIF), the Active Transportation Fund (ATIF), and the Conduit Candidates Transportation Investment Fund (CC TIF). The total ongoing funding across these sources is approximately $2.5 billion.

The Transportation Fund is essential for the day-to-day operations of the Utah Department of Transportation (UDOT), focusing on maintenance and preservation activities. This fund is constitutionally protected for use on road construction, improvements, and repairs. Major revenue sources for the Transportation Fund include motor fuel taxes, special fuel taxes (such as diesel), registration fees, and various permits. In recent years, there have also been transfers from other funds, such as ATIF and TTF, to support trails and transit initiatives.

For fiscal year 2026, the projected revenue for the Transportation Fund is about $941 million. The expenditures for this fund include a significant allocation of approximately $205 million for highway systems construction, which encompasses preservation and rehabilitation projects on state roads, including traffic signals and bridge maintenance.

The meeting highlighted the importance of monitoring revenue and expenditures closely to ensure that the funding aligns with anticipated needs. The commission emphasized its commitment to adapting spending based on revenue fluctuations, ensuring that transportation infrastructure remains a priority in Utah.

Overall, the meeting underscored the critical role of diverse funding sources in maintaining and improving Utah's transportation system, with a focus on strategic planning and fiscal responsibility.