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Senate approves House Bill 25 to raise cap on TECM sales-tax distribution
Summary
The Idaho Senate passed House Bill 25 to increase the cap and local allocation formula for the Transportation Expansion, Congestion and Mitigation (TECM) fund; the measure passed 34–1 and will return to the House.
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House Bill 25, a bill adjusting distribution limits for the Transportation Expansion, Congestion and Mitigation (TECM) fund, passed the Idaho Senate on March 28, 2025. The measure, carried on final reading by Senator O'Connorowitz, received 34 votes in favor and one absent, meeting the required majority.
The bill increases the overall cap on TECM receipts that may be allocated and raises the portion that local entities may receive. Sponsor Senator O'Connorowitz told colleagues the change phases in over three years, then becomes the new permanent cap, and that the funds flow through sales-tax revenues to respond to growing transportation needs.
Debate on the floor was brief; no amendments or recorded dissents were offered during the third-reading debate. After the roll-call vote the senate secretary announced the bill passed and that the title was approved; the bill will be returned to the House of Representatives for further processing.
The TECM fund was created previously to direct a portion of sales-tax revenue toward transportation projects, and this bill adjusts the formula and caps that govern how much may flow to that program and to local governments. No specific dollar amounts or local allocations were included in the floor remarks beyond the description of a three-year phase-in.
Votes at a glance: House Bill 25 — Passage in Senate: 34 in favor, 0 opposed, 1 absent. Title approved; bill returned to the House of Representatives.
No other actions (amendments or referrals) were recorded on the floor during the debate.
