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Bill to broaden use of turnpike toll credits draws support and caution

New Hampshire Senate Transportation Committee · January 20, 2026

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Summary

Sen. Reardon’s SB 458 would let municipalities, counties and nonprofits use turnpike toll credits as federal match for eligible Title 23 projects; DOT staff warned credits are limited and could be exhausted sooner if used more widely, while experts and advocates said federal law allows broader uses and the state restriction is self‑imposed.

Sen. Reardon introduced SB 458 to expand how New Hampshire may apply turnpike toll credits as the non‑federal match for federally eligible transportation projects, including municipal and nonprofit projects under Title 23. He said the intent is to reduce local match burdens and level the playing field for urban compact communities.

A DOT official explained how toll credits are earned (from turnpike renewal/replacement and capital projects funded with toll revenue), how the federal maintenance‑of‑effort test operates, and that New Hampshire’s current balance of toll credits is near $190 million with $141 million already obligated against projects. DOT testimony said New Hampshire currently earns fewer credits than it spends and, at present rates, could exhaust credits around 2035 absent revenue changes.

An expert witness with long experience in federal/state transportation finance told the committee federal law permits toll credits to serve as non‑federal match for a broad set of Title 23 and transit projects and argued that RSA 2:28 has had the practical effect of excluding municipalities. He urged amending RSA 2:28 to allow municipal access where federal rules permit.

Committee members noted the bills are related: expanding toll credit use without generating additional credits may accelerate depletion; conversely, if a bill like SB 627 increases turnpike revenue and generates more credits, expanded applications may be viable. The committee closed the hearing after taking testimony and questions; no vote was recorded.