DOT secretary outlines federal funding, EV fees and state payouts

Joel Dunphy, the department secretary, opened the commission’s report with an update on federal developments, saying the House released HR 8870 — referred to in his remarks as the Build America 250 Act. He said the bill “will preserve the current federal aid highway program” and estimated an overall funding increase of about 3.7 percent for the highway program. Dunphy noted the bill proposes roughly $474,000,000,000 in Highway Trust Fund contract authority and a new bridge-formula program funded at about $9.2 billion per year. “They would also establish a new federal annual registration fees to be collected by each state for electric vehicles and plug in hybrid vehicles,” Dunphy said, citing proposed fees of $130 for EVs and $35 for plug-in hybrids with gradual increases to caps in later years.

Dunphy also summarized recent appropriations activity, noting the House Appropriations subcommittee released a draft that includes advance appropriations and funding directed to programs such as NEVI. On state-level distributions, he told commissioners the department will make DSTBG-style payouts to class-1 cities (population over 5,000) and 66 counties totaling just over $30,000,000 before the end of the fiscal year. “So total amount that state highway funds that will be going to these entities is just a little bit over $30,000,000 and so we'll make those payments… before the end of the fiscal year,” he said.

Commissioners asked for clarification about the bridge fund and how formula funds would flow to South Dakota; Dunphy said staff are still working through the bill text and that alignment with the Senate version will be required before final numbers are set. He closed by noting the bills are early steps in the process and expecting more detail as committees reconcile proposals.