Texas Transportation Commission Approves $138 Billion 10-Year Transportation Plan on August 26

en.Wedoany.com Reported - The Texas Transportation Commission approved a 10-year transportation plan totaling $138 billion on August 26 to guide project development through fiscal year 2036. This plan is the latest update to the Unified Transportation Plan (UTP) annually revised by the Texas Department of Transportation (TxDOT), advancing the 10-year planning horizon by one year while concurrently updating projected funding and projects.

The newly approved plan covers fiscal years 2027 through 2036, with total funding of approximately $138 billion, about 5.5% lower than the investments listed in the previous UTP; of this amount, roughly $95 billion is allocated for projects within the 10-year period, with an additional $43 billion for project development and routine maintenance. Project funding is down 6.5% from the $101.6 billion listed in the previous UTP. Despite the reduced funding forecast, the plan continues to advance high-priority maintenance, mobility, and safety projects, while increasing investments in congestion relief, rural corridors, and transportation connecting key economic centers.

TxDOT Executive Director Marc Williams stated that this 10-year plan reflects the scale and complexity of meeting Texas' transportation needs in one of the fastest-growing states in the nation. He said the plan focuses on tangible outcomes—improving safety, maintaining the existing system, and supporting the reliable movement of people and goods; through sustained attention to project delivery, management, and long-term performance, these investments help TxDOT meet current demands while planning responsibly for the future.

Funding projections had already tightened earlier in the year. When TxDOT began developing the 2027 UTP in January, initial projections placed project funding at $94.5 billion, approximately 7% lower than the $101.6 billion in project funding listed in the 2026 UTP. Federal funding adjustments were among the largest factors driving the forecast decline, with federal funding adjustments in the 10-year forecast reduced by $4.4 billion.

The federal adjustments come as surface transportation authorizations under the Infrastructure Investment and Jobs Act (IIJA) are set to expire on September 30. TxDOT's fiscal year 2027 forecast assumes federal funding returns to pre-authorization levels under current law, rather than continuing the elevated levels provided by the IIJA. Initial projections also showed reductions in Proposition 1 revenue estimates, Texas Mobility Fund bond proceeds expectations, and nontraditional funding, partially offset by increased projections of state motor fuel tax and vehicle registration fee revenues. Proposition 1, approved by Texas voters in 2014, directs a portion of state oil and natural gas production tax revenue into the State Highway Fund for nontolled roads.

By June, stronger-than-expected Proposition 1 revenue projections added approximately $500 million to the draft UTP, bringing projected funding to about $95 billion—the level ultimately approved by the commission. TxDOT stated that continued funding declines mean "a shift from expanding the UTP project portfolio to a greater focus on development of the existing programmed projects." Sustained declines could limit its ability to add mobility projects and delay planned projects with funding shortfalls. Constrained professional engineering and right-of-way budgets pose risks to delivering the existing project portfolio.

The UTP directs funding toward highway maintenance, congestion relief, safety, and connectivity, while also covering public transportation, maritime, aviation, rail, freight, international trade, and bicycle and pedestrian projects. The approved plan increases funding for TxDOT's congestion relief initiative, "Texas Clear Lanes." According to TxDOT, since Clear Lanes launched in 2015, completed, under-construction, and planned nontolled projects associated with the program represent $90.6 billion in investment. Many projects in the 2027 UTP are located on segments of the Texas' 100 Most Congested Roadways list. For example, construction is advancing on the I-35 Capital Express South project in Austin, part of TxDOT's Texas Clear Lanes congestion relief program, which adds managed lanes and rebuilds bridges and ramps along the corridor. The plan also increases investments in rural corridors and transportation connecting key economic centers.

Alvin New, acting chair of the Texas Transportation Commission, said input from transportation partners and the public helped shape the plan. These investments will improve mobility, enhance connectivity, and make roads safer for everyone.