The Commonwealth Transportation Board reviewed and approved the final FY 2027–2032 Commonwealth Transportation Fund (CTF) Six-Year Financial Plan and took up the FY 2027 budgets for the CTF, VDOT and DRPT.
The Six-Year Financial Plan
The Six-Year Financial Plan is the master funding document for all of Virginia’s transportation modes including highways, rail, transit, ports, aviation, DMV, and space flight for FY 2027 through FY 2032. The final plan allocates $60.0 billion from all revenue sources over that period, up $1.6 billion from the previous FY 2026–2031 plan.
Key allocations within the six-year plan include:
- $18.7 billion for Maintenance and Operations
- $17.8 billion for Construction (of which approximately $3.6 billion represents local and regional contributions)
- $6.6 billion transferred to the three regional transportation entities
- $1.5 billion in bonded debt (Route 58 Corridor Bonds, I-81 Financing, GARVEE Bonds, and Special Structures Debt)
- $1.1 billion in dedicated revenue for the WMATA Capital Fund
- $607.1 million in dedicated fuel tax revenue for I-81 Corridor Improvements
CTF Revenue Outlook
State-only revenues flowing into the CTF are projected to grow from $5.4 billion in FY 2027 to $6.1 billion in FY 2032 which amounts to $34.6 billion over six years. The three largest sources include:
- Statewide Motor Fuels Tax: $10.65 billion over six years, growing from $1.64 billion to $1.88 billion
- Retail Sales and Use Tax: $9.61 billion, growing from $1.49 billion to $1.72 billion
- Motor Vehicle Sales and Use Tax: $8.21 billion, relatively flat at roughly $1.36–$1.38 billion annually
Other notable sources include the State Insurance Premium Tax ($1.73 billion), Registration Fees ($1.42 billion), and the Highway Use Fee ($927.7 million) which is the fastest-growing line item, more than doubling over the six-year plan as electric vehicle and fuel-efficient vehicle adoption increases.
Total revenues across the six-year period, which include state, federal, local/regional participation, and financing sources reach $52.5 billion in operating revenues and financing, with a grand total of $60.0 billion including pass-through transfers to regional entities.
State Budget and Federal Funding Questions
As of the June 16 meeting, the General Assembly had not yet adopted a final state budget and that uncertainty runs through everything. VDOT flagged that final budget adoption could require changes to both the CTF and VDOT budgets.
The federal picture is also worth watching. Federal fund categories were updated based on revised FHWA and FTA formulas, and $56 million in FY26 Congressionally Directed Spending earmarks were included. Further federal changes, such as the federal surface transportation reauthorization bill, could require corrections.
FY 2027 CTF, VDOT and DRPT Budgets Adopted
The CTB also acted to approve the FY 27 budget for the CTF, VDOT and DRPT. For FY 2027, the CTF budget totals $10.23 billion which is a 5.3% increase over the FY 2026 budget.
Highway construction accounts for 35.5% of the budget, while maintenance and operations represent 22.5%. Rail and Public Transportation accounts for almost 10% of the budget.
A key concern for counties is the projected $653.7 million deficit in the Highway Maintenance and Operating Fund (HMOF). To close the gap, VDOT plans to use $287 million in federal funds and transfer $366.7 million from the Construction Fund. This ongoing reliance on construction dollars to support maintenance reduces funding available for future transportation projects.
The FY 2027 VDOT budget totals $9.0 billion, an increase of $567.6 million from FY 2026. Highway construction funding rises by $848.9 million, while highway maintenance funding declines by $247.6 million. Financial assistance to localities remains relatively stable overall. The FY 27 DRPT budget includes investments of $1.169 billion in state, federal, and local resources towards improving public transportation and rail across the Commonwealth. Broken down by category this amounts to:
- Transit = $930.8 M
- Rail = $37.7 M
- DRPT Administration = $19.9 M
- VPRA (pass through) = $181.1 M
VACo Contact: James Hutzler