States scramble to plug transportation funding holes

News From the States

By Erika Bolstad Sep 25, 2025

States are scrambling for the money to fill potholes, plow roads, maintain bridges and pay bus drivers as they confront inflation- and tariff-driven cost increases and declining gas tax revenues. 

States also face uncertain federal funding as the Trump administration reduces the size of government and zeroes out some Biden-era transportation programs. As the Infrastructure Investment and Jobs Act expires next year and Congress considers its next transportation funding bill, cities are clamoring for the federal government to bypass states and give cities a larger share of federal infrastructure money distributed by formula. 

Drivers will have to pay higher vehicle registration fees and gas taxes to make up for the shortfalls. Long-planned construction projects and safety improvements will be delayed. And bus riders may see fewer routes and longer wait times.

View the full article: NewsFromTheStates.com