What’s happening: A preliminary analysis of state department of transportation (DOT) budgets for Fiscal Year (FY) 2027 by the ARTBA economics team shows a slight decline (-1.4 percent) in total new budget authority, from $224.5 billion to $221.3 billion.
However, DOT budgets remain more than 35 percent higher than FY 2021 levels ($162.5 billion), prior to the incorporation of increased federal funding enacted under the 2021 infrastructure law and the surge in state revenues spurred by the pandemic recovery.
Why it matters: While some states report growing budget pressures, the aggregate trend implies short-run stability in new transportation resources (near record levels) available for programming. Budget plateaus are typical during reauthorization periods for the federal surface transportation programs, which are currently set to expire on Sept. 30.
What’s next: ARTBA members and subscribers to the Market Intelligence service can access the full report here.
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