Rolling 10-year program targets preservation, congestion and mobility as projected project funding declines 6.5%
The Texas Transportation Commission approved a $138-billion, 10-year transportation plan Aug. 26 to guide project development across the state through fiscal 2036.
The Texas Dept. of Transportation’s Unified Transportation Program is updated annually, moving the state’s 10-year planning period forward one year while revising anticipated funding and projects. The newly approved plan covers fiscal 2027-36.
The $138-billion total is about 5.5% below the investment outlined in the previous UTP and consists of about $95 billion for projects over the decade and another $43 billion for project development and routine maintenance. Project funding is down 6.5% from the $101.6 billion programmed in the previous UTP.
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Texas Transportation Commission
2027 Unified Transportation Program Development
Despite the lower forecast, TxDOT says the plan will continue advancing high-priority preservation, mobility and safety projects, with increased funding for congestion relief, rural corridors and transportation serving key economic hubs.
“This 10-year plan reflects the scale and complexity of meeting Texas’ transportation needs in one of the fastest-growing states in the nation,” TxDOT Executive Director Marc Williams said.
“It is focused on practical outcomes—improving safety, preserving the system we have, and supporting reliable movement for people and goods,” Williams added. “With continued attention to project delivery, stewardship and long-term performance, these investments help position TxDOT to meet today’s demands while planning responsibly for the future.”
Funding Forecast Tightens
TxDOT had anticipated a smaller project program as it began developing the 2027 UTP in January. The agency’s initial forecast put project funding about 7% below the $101.6 billion programmed in the 2026 UTP.
TxDOT’s January financial forecast projected $94.5 billion for the 2027 Unified Transportation Program, down 7% from the previous program, with federal funding adjustments among the largest factors in the decline. Click to enlarge.
Courtesy TxDOT
Changes to the 10-year forecast included a $4.4-billion reduction from federal funding adjustments. TxDOT’s preliminary forecast also reflected lower Proposition 1 revenue estimates, reduced anticipated Texas Mobility Fund bond proceeds and lower nontraditional funding, partly offset by increased projections for state motor-fuel taxes and vehicle-registration fees.
Proposition 1, approved by Texas voters in 2014, directs a portion of state oil and natural gas production tax revenue to the State Highway Fund for non-tolled roads.
The agency said the continued funding decline represents a shift “from expanding the UTP portfolio of projects to an increased focus on the development of existing planned projects.” TxDOT warned that continued declines could limit its ability to add mobility projects and delay planned projects with funding gaps.
The agency also cited constraints on professional engineering and right-of-way budgets as risks to delivering the existing project portfolio.
The federal adjustment comes as the surface transportation authorization contained in the Infrastructure Investment and Jobs Act approaches its Sept. 30 expiration. TxDOT’s fiscal 2027 forecast assumes federal funding returns to levels authorized before the current law rather than continuing at the higher levels provided under the IIJA.
By June, stronger-than-expected Proposition 1 revenue projections had increased the draft UTP by about $500 million, bringing projected funding to about $95 billion, the level the commission ultimately adopted.
Preservation, Congestion Remain Priorities
Construction advances on the I-35 Capital Express South project in Austin, part of TxDOT’s Texas Clear Lanes congestion-relief program. The project adds managed lanes and reconstructs bridges and ramps along the corridor.
Courtesy TxDOT
The UTP directs funding toward highway preservation, congestion relief, safety and connectivity while also covering public transportation, maritime, aviation, rail, freight, international trade and bicycle and pedestrian projects.
The adopted plan increases funding for Texas Clear Lanes, TxDOT’s congestion-relief initiative. Completed, under-construction and planned non-tolled projects associated with the program represent $90.6 billion in investment since Clear Lanes began in 2015, according to TxDOT.
Many projects in the 2027 UTP are on road segments included in Texas’ 100 Most Congested Roadways list. TxDOT also says the plan increases funding for rural corridors and transportation serving key economic hubs.
Acting Texas Transportation Commission Chair Alvin New said transportation partners and public input helped develop the program.
“These investments will improve mobility, enhance connectivity, and make our roads safer for everyone,” New said.
