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Act 89 Transportation Plan

On November 25, 2013, House Bill 1060 was signed into law, creating Pennsylvania's most comprehensive piece of state transportation legislation in decades. This legislation invests an additional $2.3 billion to $2.4 billion into transportation by the fifth year of the plan. Partial funding for the new transportation package is being derived from the elimination of the flat 12-cent gas tax and modernizing an outdated transportation financing structure through the uncapping of the wholesale, Oil Company Franchise Tax. The act also increased resources for transit and created a dedicated Multimodal Fund (PDF) for non-highway modes' capital needs.

Learn more about the plan in the Transportation Funding Plan Summary (PDF) created when the law was passed. To see projects made possible or in development because of the plan, visit the department's Projects website.

The plan was based on many recommendations from the then Transportation Funding Advisory Commission (PDF). The commission's recommendations are outlined in a Final Report (PDF) and the department has implemented many of the recommendations.

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Current PennDOT Funding

Source / Description% of Department BudgetDollar Amount
State Funding
Motor License FundFunded 75% by the Liquid Fuels Tax or "gas tax", 25% through registrations and fees
53%$4.86 billion
Public Transportation Trust FundFunded in large part through the Turnpike payments, also sales tax and lottery fund payments.16%$1.512 billion
Multimodal Transportation FundCreated by Act 89, MTF is dedicated funding for ports, rail, aviation, and bicycle/pedestrian.2%
$153 million
LotteryFunded by PA Lottery proceeds. Dedicated to free and reduced-fare public transportation for Pennsylvanians 65 years and older.2%$171 million
Public Transportation Assistance FundFunded by fees on tires, rental vehicles, and leased vehicles.3%$258 million
Federal Funding
HTF Highway and BridgeFederal Highway Trust Fund dollars allocated for highway and bridge projects.22%$2.022 billion
HTF Public Transportation FundingFederal Highway Trust Fund dollars allocated for public transportation.2%$204 million

More information on revenue sources and uses can be found in our Annual Report under "Financials."

Legislative action was taken in 2016 that capped expenditures from the Motor License Fund going toward the State Police budget beginning with the 2017-18 budget and concluding with the 2027-28 budget, ending an annual $500 million going to State Police.

This uncapping originally made possible a multi-year Road Maintenance and Preservation (Road MaP) initiative (PDF)to increase maintenance investments for the first time since 2006, as well as significantly invest in capital projects and interstate projects. However, those gains have largely been lost due to decreased revenue.

Pre-existing, Growing Needs

While historic and much-needed, Act 89 of 2013 did not meet the need that was identified by the Transportation Funding Advisory Commission in 2011 (PDF). The report noted that unmet needs would grow to $7.2 billion by 2020, but Act 89 was designed to build to roughly $2.4 billion by its fifth year.

Act 89 anticipated action at the federal level and that has not happened. In reviewing needs on the Interstate system and updating our asset needs, the picture is more dire than shown in the TFAC report. Our Pathways initiative outlines our new, significant gaps and needs, as well as the long-term transition to the future of transportation funding in Pennsylvania.