PennDOT Pathways works to identify, evaluate, and implement alternative funding solutions for our aging highways and bridges that are equitable and reliable. PennDOT Pathways will allow us to re-imagine what transportation funding looks like in Pennsylvania to meet our growing needs and find a path forward to serve our communities. As part of the Pathways program, an Alternative Funding Planning and Environmental Linkages (PEL) study was conducted, shared for public comment and released in September 2021 that identified near-, mid- and long-term funding options and established a methodology for their evaluation. Viable solutions will be launched as PennDOT Pathways initiatives are further explored over the coming years.

PennDOT's largest source of revenue for highways and bridges — approximately 75 percent — comes from state and federal gas taxes. We are dependent on gas taxes to fund our transportation system. These funds are generated every time a driver in Pennsylvania refills their gas tank.

Gas taxes have become a less predictable source of revenue for transportation agencies across the country. As passenger vehicles become more fuel-efficient, and adoption of all-electric vehicles continues to increase, we are seeing reduced revenues at the gas pump. In addition to passenger cars some segments of the trucking industry are also moving toward electric technologies. FedEx recently committed to replacing its entire pickup/delivery fleet with electric vehicles*. Meanwhile, UPS has already ordered 10,000 electric vehicles and Amazon has plans to purchase 100,000*.

This trend toward more electric vehicles, both for personal and commercial transportation, will reduce gas consumption and revenue from gas taxes. Because we are currently reliant on gas taxes as our largest source of revenue, this trend only amplifies our budget challenges. In addition, these gas taxes are not indexed to inflation, which makes it an even more unpredictable resource for revenue.

​The federal Bipartisan Infrastructure Law (also known as the Infrastructure Investment and Jobs Act) was passed in 2021 and was a great step in the right direction. While it is expected to bring approximately $4 billion dollars in new federal highway and bridge funds to Pennsylvania over five years, there are constraints within this funding, including matching funds that must be provided by PennDOT. Other funding with the program is being administered as grants that are competitive in nature that do not guarantee funding increases for PennDOT. Any grants which PennDOT is successful at obtaining means the additional need for state funds to match the federal award amounts. 

Governor Tom Wolf established the Transportation Revenue Options Commission (TROC) to develop comprehensive recommendations to ultimately phase out Pennsylvania's gas tax, which has become an unreliable source of funding. TROC submitted a report of recommendations to Governor Wolf in July 2021, which included potential short- and long-term funding solutions. These recommendations currently await further action by the General Assembly. Many of these funding solutions were also identified and assessed within the Alternative Funding Planning and Environmental Linkages (PEL) study, which was released in September of 2021. PennDOT continues to study and evaluate alternative forms of funding to support Pennsylvania's vast transportation network through its PennDOT Pathways program.