LOC News
HB 2025 Transportation Package – State Highway Fund Revenue Available
This week, the Joint Committee on Transportation and Reinvestment (JCTR) held a series of four hearings, including three focused on public comments. More than 200 individuals testified during the three public hearings, with a strong representation from city and county leaders and staff. The LOC testified in support of HB 2025, as the legislation meets the core elements required in a transportation package. These elements were part of recommendations from the LOC’s Transportation Policy Committee.
Estimates for the scale of the investments and revenue sharing from the State Highway Fund (SHF) are now available. These are estimates and based on projections. See the attached table for details. The scale of investment is significant, as illustrated by comparing the FY 2024 total SHF city distribution of $238 million with the projected FY 2030 increase of $235 million. This is not a misprint; HB 2025 is capable of generating nearly double the funding your city received during FY 2024. This represents an increase over the original framework released in April of this year. What is very important to understand about HB 2025 is that it's a package that truly reinvests in the communities, focusing on operations and maintenance.
| FY 2024 Estimated Distribution |
TRIP 2025 Estimated FY 2032 |
HB 2025 Estimated FY 2030 |
| $238,000,000 | $170,000,000 | $235,000,000 |
In addition, the legislation will invest at least $250 million in the Great Streets program, $50 million in Safe Routes to School, and an additional $250 million for anchor projects, which are essentially some of the remaining HB 2017 projects.
A significant investment is also being made in public transit. Currently, the payroll tax of .1% generates about $137 million. HB 2025 has new payroll tax levels set for 2026 at 0.18% and for 2030 at 0.30%. These new revenue levels will enable the expansion of existing services, including increased connections to rural and frontier communities. Early estimates suggest that by 2026, the payroll tax will generate an additional $100 million, and by 2030, public transit will have access to an additional $250 million when compared to today’s $137 million.
Contact With Your Legislator Remains Important. HB 2025 will require continued grassroots support through the end of the legislative session. Contacting your legislator will be crucial, so please maintain consistent outreach over the next couple of weeks to help us cross the finish line with this package.
Contact: Jim McCauley, Legislative Director – jmccauley@orcities.org
Last Updated 6/13/25