California Transportation Commission adopts 2025 statewide needs assessment, flags $216 billion shortfall

The California Transportation Commission on Thursday adopted the 2025 State and Local Transportation System Needs Assessment, a statutorily required 10‑year review that sets statewide priorities for preservation, safety, transit and climate resiliency. Francis Diaz Sanchez, who led the assessment team, told commissioners the report estimates $756.8 billion in needs over 10 years and projects available revenues of about $572 billion, producing a $215.7 billion shortfall.

Why it matters: the assessment, prepared under Senate Bill 1121, is the first statewide inventory of multimodal needs required by law and is intended to inform legislative and executive actions on long‑term transportation funding. The report recommends a “phased implementation” of a sustainable funding mechanism to blunt declining fuel‑tax receipts and stabilize funding.

The commission’s staff described the methodology used for the assessment, which included regional surveys, stakeholder workshops and coordination with state climate and planning guidance. Diaz Sanchez said the team incorporated public comments and refined sections on tribal access routes and accessible transportation demographics.

Commissioners and outside commenters stressed urgency. Commissioner Tiffany praised the staff’s work, saying, “tremendous job,” and warned that nearly $31 billion of the shortfall reflects projected declines in fuel consumption, increasing the need to act quickly on a sustainable revenue source.

The commission approved the assessment after discussion and public comment and directed staff to transmit the adopted report to the Legislature. The needs assessment will be updated again as required by statute; staff said the next full update is planned for 2030.

What the report recommends: among several findings and policy recommendations, the assessment: (1) calls for a phased transition away from reliance on the state fuel excise tax, (2) highlights climate‑resiliency and tribal access needs, (3) requests better data collection for local streets, bicycle/pedestrian needs and transit operations for the next update.

The commission voted to adopt the assessment in a recorded motion; there was no roll call opposition. Staff will submit the document to the Legislature and continue work on the 2030 update.

Notes for follow up: staff said some public comments requested more granular prioritization and more detailed breakdowns of transit versus road needs; the team plans to incorporate additional data sources and the results of related state reports into the 2030 update.