Road Construction Sees Drop in Funding from Fuel Taxes due to COVID-19

As a result of social distancing and the increase in numbers of people working remotely, there has been a significant decrease in the number of drivers on the roads.

This has affected revenues from toll bridges and fuel taxes which are an important source of funding for road improvement and maintenance projects.

Several US states are facing a serious loss in funding for their Departments of Transport (DOTs) as a result.

Some have responded by delaying non-essential highway, street and bridge projects and downgrading road resurfacing projects to patching and sealing.

Washington state faces an estimated $100 million loss in fuel tax revenue while the Maine Department of Transport budget may decrease by $123 million.

Despite the loss in funding, some states have taken advantage of the lower numbers of road users to accelerate planned road improvement projects.

The Florida DOT accelerated 40 projects in April while the Georgia DOT awarded $109.4 million in contracts from March bids.

The American Road and Transportation Builders Association and the American Association of State Highway and Transportation Officials have called on the federal government to provide funding for state DOTs facing a loss in revenue.

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