Revenues from the highway user taxes , particularly the motor fuel tax, are deposited into the trust fund and divided between the highway and transit accounts . Money for highways and transit is distributed to state and local governments from the accounts through a series of formulas and grants administered by the U.S. Department of Transportation. The formulas are controversial as many states receive less federal aid than was contribute to the trust fund. The disparities tend to be regional, with the Northeast receiving significantly more funding than contributed. For the latest information available on the reauthorization process, please proceed to our hot topics section devoted to transportation .
States rely on federal funding and state dedicated revenues to fund transportation projects.
One of the major state earmarked revenue source for transportation is the state gasoline tax. The Federation of Tax Administrators compiles a table showing state gas tax rates. In addition, states are relying on innovative financing strategies to fund infrastructure projects. The use of SIBs are expected to grow as Congress makes more states eligible. The states highlighted below have recently implemented new financing strategies to address the needs of their state's roads and highways.