Senate committee shifts mileage-based user fee start to July 1, 2026, pending funding and federal grant decision

The Senate Transportation Committee on Tuesday reviewed updates to the T bill that push the earliest start of a mileage-based user fee — often called a mileage-based user fee (MBUF) — to July 1, 2026, and make that date explicitly contingent on “sufficient funding” and successful federal grant awards.

David Leonard, legislative council, told the committee the bill text reflects a schedule change: “clearly, we are not starting a mileage based user fee this coming July 1,” and the language was updated to set the target to 07/01/2026, “subject to sufficient funding being available for implementation.”

The change matters because federal funding tied to the program is in a 90‑day administrative hold. Committee members repeatedly asked the Agency of Transportation (AOT) to report back to joint legislative fiscal committees with updates so the Legislature can decide whether to proceed if grant money does not arrive.

Legislative and AOT witnesses described the existing funding picture as incomplete. Committee discussion identified three separate strands of funding mentioned in the draft bill and related budget work: state T‑fund money, an appropriation in the T bill for non‑federal match, and a $1,000,000…