Fiscal constraints on state budgets coupled with continued uncertainty with respect to future levels of federal surface transportation funding have led states to diversify the funding sources for their transportation projects. We summarize below the recent legislative proposals made by states to address this funding gap, as well as the current status of federal support for infrastructure projects, including those structured as public-private partnerships (P3s).

I. Introduction -

In the United States, the responsibility for surface transportation expenditures is divided among the federal, state and local governments. State and local governments are each responsible for approximately 50% of the investments in the nation’s transportation system. Federal funding support is a critical component of such expenditures, although the degree of reliance on federal funds varies by state. Based on information provided by the Federal Highway Administration compiled between 2001 and 2012, the range of federal funding as a percentage of state transportation budgets is between 35% and 98% depending on the state.