How Are Road Repairs Funded Us

Land and Local Backgrounders Homepage

Spending on highways and roads includes the performance, maintenance, and construction of highways, streets, roads, sidewalks, bridges, and other related structures.¹ This category includes both regular highways and cost highways.

• How much do state and local governments spend on highways and roads?
• How does state spending differ from local spending and what does the federal government contribute?
• How have highway and route expenditures inverse over fourth dimension?
• How and why does spending differ across states?

How much do state and local governments spend on highways and roads?

In 2022, state and local governments spent $203 billion, or half dozen percentage of direct general spending, on highways and roads.ⁱⁱ As a share of state and local directly general expenditures, highways and roads were the fifth-largest expenditure in 2022.

In 2022, 42 percent of highway and road spending went toward operational costs, such as maintenance, repair, snow and ice removal, highway and traffic design and performance, and highway safety. The other 58 per centum went toward capital spending, such as the construction of both highways and roads.

This operational-capital divide stands in stark dissimilarity to other major land and local spending categories, where capital letter spending typically accounts for 10 percent or less of total direct spending. Since 1977, capital spending has consistently been between 50 pct and 60 per centum of state and local highway and road spending.

How does land spending differ from local spending and what does the federal government contribute?

Spending on highways and roads is roughly divide between country and local governments. In 2022, states provided 62 percent of highway and road spending while local governments provided 38 percent. State spending is typically for highways and tollways, whereas local governments spend more money on local streets and roads.

Straight spending on highways and roads as a share of total spending in 2022 deemed for 8 pct of land straight general expenditures and 4 percent of local direct general expenditures.

In 2022 (the most recent year that we take data for these levels of regime), direct spending on highways and roads accounted for 8 percent of land spending, vii percent of county spending, eight percent of city, thirteen percent of township spending, and iii percent of special district spending.

Both state and local governments dedicate motor fuel taxation revenue and highway cost revenue to transportation spending. However, revenue from motor fuel taxes and tolls (even combined) do not contribute a majority of the funds used for highway and route spending.

In 2022, state and local motor fuel revenue enhancement acquirement ($52 billion) accounted for 26 percent of highway and road spending while toll facilities and other street construction and repair fees ($22 billion) provided another 11 percent. The rest of the funding for highway and road spending came from state and local general funds and federal funds.

Overall, state and local governments provided three-quarters of highway and road funding ($155 billion) in 2022. Federal transfers for highways and roads were $48 billion dollars in 2022, or 24 percent of all spending. These numbers and percentages will likely modify in the coming years with the passage of the Federal Infrastructure Bill in November of 2022 which includes $110 billion for roads, bridges, and other major transportation projects.

How have highway and road expenditures changed over time?

From 1977 to 2022, in 2022 aggrandizement-adjusted dollars, state and local government spending on highways and roads increased from $97 billion to $203 billion (108 pct increment). Among major spending programs, this was the lowest level of land and local spending growth over the period. The next-lowest spending growth was for elementary and secondary educational activity (138 percentage). (For more information on spending growth see our state and local expenditures page.)

The share of state and local spending going to highways and roads also fell over the period, dropping from 9 percentage in 1977 to half dozen percent in 2022.

How and why does spending differ beyond states?

Beyond the Usa, state and local governments spent $617 per capita on highways and roads in 2022. Alaska spent the almost per capita on highways and roads at $one,795 per person, followed past Northward Dakota ($1,624), Wyoming ($ane,152), South Dakota $one,110), and Vermont ($1,038). Arizona spent the to the lowest degree on highways and roads at $384 per person, followed past Tennessee ($398), Georgia ($420), Missouri ($422), and South Carolina ($442).

Data: View and download each land's per capita spending by spending category

Per capita spending is an incomplete metric because it doesn't provide whatsoever data nearly a state's demographics, policy decisions, or physical size. A state's total spending on highways and roads depends on several factors, including how many drivers are on the road, how many lane miles are in a land, and the usage of public roadways in the state likewise as payroll, materials, and other costs. States with high per capita spending come from two general groups: low-population states with low population density but big physical size (e.g., Alaska, N Dakota, and Wyoming) and places with higher traffic volume, which produces higher costs.³

Farther, because highways and roads are capital intensive, spending can change dramatically from yr to year depending on whether a upper-case letter project is agile in that state. For example, Delaware's real per capita spending shifted from $882 in 2010 to $536 in 2022 to $836 in 2022. Similarly, Wisconsin's real per capita spending bounced from $700 in 2022 to $1,008 in 2022 to $814 in 2022.

Spending per vehicle mile traveled may provide a sense of how much states spend relative to how much their highways and roads are used. Looking at state and local dollars spent every bit a share of vehicle miles traveled, the US boilerplate was $621 for every ten,000 miles traveled in 2022.⁴ The highest spender was Alaska ($two,239), followed by the Commune of Columbia ($1,626), Northward Dakota ($one,262), New York ($one,141), and Pennsylvania ($i,094). Spending per vehicle mile traveled spending was lowest in Missouri ($327), Tennessee ($328), and Georgia ($335).

Interactive Information Tools

Land and Local Finance Information: Exploring the Census of Governments

State Fiscal Briefs

What anybody should know about their state's budget

Further Reading

Using Dollars with Sense: Ideas for Improve Infrastructure Choices
Urban Institute (2019)

Infrastructure, the Gas Tax, and Municipal Bonds
Richard Auxier and John Iselin (2017)

High costs may explain crumbling back up for United states infrastructure
Tracy Gordon, Urban Wire (2015)

Reforming State Gas Taxes
Richard Auxier (2014)

Assessing Financial Capacities of States: A Representative Revenue System–Representative Expenditure System Approach, Financial Year 2022
Tracy Gordon, Richard Auxier, and John Iselin (2016)

^two Direct full general spending refers to all direct spending (or spending excluding transfers to other governments) except spending specially enumerated as utility, liquor store, employee-retirement, or insurance trust. The utility sector includes public transit systems. Unless otherwise noted, all data are from United states Census Bureau Annual Survey of Land and Local Authorities Finances, 1977-2019 (compiled by the Urban Institute via State and Local Finance Data: Exploring the Demography of Governments; accessed xxx-December-2021 05:17), https://state-local-finance-data.taxpolicycenter.org. The demography recognizes five types of local authorities in addition to state government: counties, municipalities, townships, special districts (eastward.g., a water and sewer authority), and school districts. All dates in sections about expenditures reference the fiscal year unless explicitly stated otherwise.

How Are Road Repairs Funded Us,

Source: https://www.urban.org/policy-centers/cross-center-initiatives/state-and-local-finance-initiative/state-and-local-backgrounders/highway-and-road-expenditures

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