In a time of uncertain future federal funding, state departments of transportation are seeing increased bridge and highway investments and work across the country.
According to a new report released by the Nashville-based Thompson Research Group, contract awards for projects have seen a 14% increase from fiscal year 2024 to fiscal year 2025.
The report notes that in interviews with state transportation department officials it was both disclosed that backlogs are currently at record levels, while “contractor payments were the highest ever last year.”
Of equal importance: state transportation department budgets are up overall this fiscal year by a significant 5%.
The core state budgets saw a steady increase between fiscal year 2020 and fiscal year 2024. The cumulative budgets, meanwhile, appear to be on track to reach a record level for fiscal year 2026.
“Much like the federal bill, state DOT budgets provide another indication of future lettings/contract awards,” says the report, adding that “state and local municipalities typically account for as much as two-thirds of all road/bridge work funding.”
Because state budgets tend to be expended over a period of multiple years, says the Thompson Research Group document, “the snowballing effect of projects” and expenditures is expected to continue well into fiscal year 2026 and beyond.
August 18, 2025
By Garry Boulard
Photo courtesy of Unsplash
