Title: Highway and Road Expenditures | Urban Institute
Headings: Highway and Road Expenditures
Highway and Road Expenditures
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 road expenditures changed over time?
How and why does spending differ across states?
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Further Reading

Content: In 2017, 8 percent of state direct general spending went to highways and roads compared with 4 percent of local direct general spending. State spending is typically for highways and tollways, whereas local governments spend more money on local streets and roads. Both state and local governments dedicate motor fuel tax revenue and highway toll revenue to transportation spending. In 2017, state and local motor fuel tax revenue ($47 billion) accounted for 26 percent of highway and road spending while toll facilities ($18 billion) provided another 10 percent. States collected nearly all motor fuel tax revenue but the collection of toll revenue was roughly evenly divided between states and localities. These are not the only state and local sources of highway and road funds, though. Overall, state and local governments provided three-quarters of highway and road funding ($135 billion) in 2017. Federal intergovernmental transfers for highways and roads were $47 billion dollars in 2017 (26 percent). How have highway and road expenditures changed over time? In 1977, state and local governments spent $93 billion on highways and roads (in 2017 inflation-adjusted dollars).