How Transportation is Funded in Oregon

The money used to preserve, improve and operate Oregon's transportation system comes from several major sources including but not limited to motor vehicle registration and title fees; driver license fees; motor vehicle fuel taxes; weight-mile tax and federal funding.

Federal Transportation Funding

The federal government provides revenues from federal fuels taxes and heavy truck taxes to states and local governments. Most federal funding is distributed to state and local governments by funding formulas.

All federal highway formula funds flow through ODOT. The agency distributes 30 percent of those funds to local governments. Oregon receives about $700 million in funding from the Federal Highway Administration each year for construction projects on the state’s roads, including the interstate, as well as planning and engineering. Oregon also receives about $150 million in public transportation funding from the Federal Transit Administration each year. Smaller amounts are provided for safety programs such as transportation safety and motor carrier safety.

ODOT applies for, and sometimes receives, grant funding from the federal government which must be spent on the specific project for which the grant was submitted. Federal funding cannot be used for day-to-day maintenance services or ODOT operations. Federal funds can only be spent on capital construction projects.

State Highway Fund

Other State Funding