DOT proposes $4.5 billion 10-year transportation plan; lawmakers weigh toll increases to cover shortfalls

The New Hampshire Department of Transportation presented the draft update of the state's 10-year transportation improvement plan (covering 2027-2036), describing a fiscally constrained $4.5 billion program that emphasizes maintenance, preservation and safety while confronting flat revenues and rising costs.

Commissioner Bill Cass and Director Toby Reynolds outlined the plan's major assumptions: federal funding reauthorization (IIJA/BIL) is uncertain after September 2026 so the draft assumes level federal funding across the ten-year horizon; project inflation assumptions were increased from 3.7% to 4.4% (adding roughly $93 million to estimates); and the DOT proposed increasing its indirect cost rate from 10% to 12% (adding roughly $47 million, used in part to offset operating costs). DOT staff said they identified about $305 million of construction to remove to bring federal-side overprogramming closer to a manageable level, and emphasized protecting pavement and bridge programs.

On the Turnpike side, DOT said turnpike revenue remains below earlier projections and would not support major discretionary capital projects without additional revenue. DOT described large projects such as the Bow'Concord expansion and Manchester I-293 Exit 6/7 reconstruction as safety and capacity priorities but noted construction funding is not available under current turnpike revenue projections. DOT discussed possible revenue options: a roughly $1-per-plaza illustrative increase would generate order-of-magnitude revenue (DOT cited roughly $70 million annually for a full-dollar increase), while more measured changes (adjusting discount structures or selectively targeting non-resident users) could yield an estimated $50'$55 million annually.

The executive council's advisory committee (GASSET) recommended adding about 11 projects back into the draft (roughly $24 million in non-turnpike projects plus larger turnpike inclusions that raise complexity); Executive Councilor Karen Leo Hill filed a minority report arguing for consistent treatment of major turnpike projects and for clearly identified funding sources.

Municipal and regional witnesses urged the committee to keep shovel-ready and safety projects in the plan: Seabrook and Portsmouth urged Route 1 and traffic-circle projects; municipal leaders from Manchester emphasized serious crash counts on I-293 corridors and urged funding for Exit 6/7; regional planning commissions noted dozens of safety projects that are now delayed or removed.

Committee next steps: DOT was asked to provide additional traffic-count data and project-level figures for local through roads; the committee scheduled work sessions beginning next Tuesday to review the plan line-by-line and requested DOT participation. No final committee vote on the plan occurred during the hearing; the department and committee will continue work sessions and consider fiscal options, including any pending toll legislation in the Senate.