Yesterday, after Governor Evers and legislative leaders announced a bipartisan budget deal, the Joint Committee on Finance (JFC) approved a motion that provides transportation resources for the 2025-27 biennium. This investment is possible with new, ongoing revenue to bolster the transportation fund, an increase in bonding, and more than $500 million in one-time general purpose revenue.

Note: Unless otherwise specified, all numbers are over the biennium, not annual.

Nearly $200 Million in New Revenue

The motion establishes or increases the following fees and transfers:

• Vehicle title fee: $50, from $157 to $207, effective Oct. 1, 2025 – $116.3 million.
• Registration fees for vehicles with gross weight over 6,000 pounds: 10%, effective Oct. 1, 2025 – $26.3 million.
• Driver's license issuance and renewal fees: $8.50, from $24 to $32.50, effective Oct. 1, 2025 – $7.5 million.
• License plate issuance fees: $6 per plate new issuance fee, increase of $2 per plate for replacement, effective Oct. 1, 2025 – $21.4 million.
• Special license plate fees: $25 annual fee for new "blackout" and "retro" plates – $16.7 million.
• Railroad personal property tax transfers from the local government fund to the transportation fund: $4.9 million.
• Lapse from the Office of the Commissioner of Insurance general operations: $6 million annual transfer to the transportation fund to support driver education grants.

It also provides $565 million in one-time general purpose revenue (GPR) support in fiscal year (FY) 2026.

Bonding

Bonding ticks up in this budget, but the level is still below the last eight biennia average. Moreover, a significant percentage of the 2025-27 bonding amount will have general fund-supported debt service.

The bonding total includes:

• $92.5 million in transportation fund-supported, general obligation bonds for design build projects.
• $204.5 million in transportation revenue bonds (TRBs) for the Major Highway Development Program.
• $185.2 million in general fund-supported, general obligation bonds for the Southeast Wisconsin Megaproject program.
• $9.5 million in TRBs for WisDOT administrative facilities.

State Highways

The JFC delivers the same level of highway program investment as Governor Evers proposed earlier this year. In addition, the motion includes the enumeration of the I-39/90/94 reconstruction project from Madison to Wisconsin Dells as a major highway development project. 

(1) Includes federal plans adopted after enacting the 2023-25 budget.

(2) Excludes $9.1 million SEG in FY 2026 for sound barriers along I-894 between 76th Street and 92nd Street in Milwaukee County.

(3) 2023-25 amount is Wisconsin's share of the Blatnik Bridge.

Highway Maintenance

• Highway System Maintenance and Operations: A decrease of $6.2 million in federal (FED) funds and $686,100 in segregated transportation revenue (SEG) annually for pavement marking activities and an increase of $3.8 million SEG for deicing salts.
• Routine Maintenance Activities: An increase of $11.6 million SEG in year one of the biennium and $18.4 million in year two.

Local Aids

• General Transportation Aids: 3% increase each calendar year and fully funds the 2% calendar year increase provided in the 2023-25 budget – $43.1 million SEG.
• General Transportation Aids: Restores funding from the 2023-25 budget veto –$10 million SEG, increasing the mileage rate from $2,734 in the current year to $2,930 in calendar year 2026 and $3,018 in 2027.
• Local Road Improvement Program-Supplemental (LRIP-S): One-time SEG funding of $100 million in FY 2026. Also $5.9 million in additional SEG to fund the $4 million I-39/CTH V interchange in the Village of De Forest and $1.9 million for Washburn County to construct an underpass beneath STH 53 to connect the Wild Rivers State Trail to services and facilities.
• Agricultural Roads Improvement Program (ARIP): $150 million SEG in FY 2026.
• Local Bridge and Culvert Improvement Program: Requires WisDOT to designate 20% of the ARIP funds for improvements to bridges and culverts identified as being in poor or worse condition under the local bridge and culvert assessment program.
• Paratransit Aids: $343,800 SEG annually to fund a 10% increase in FY 2026.
• County Forest Road Aid: $328,300 annually from the forestry account of the conservation fund to fully fund the existing county forest road aid rate of $351.
• Lift Bridge Aids: Provides $265,900 SEG annually and requires annual assistance in the same amount for the City of Menasha's Racine Street lift bridge.

Rail, Harbors, Airports

• Freight Rail Preservation Program: $30 million SEG for a grade-separated rail crossing where the South Bridge Connector project crosses the easternmost rail line west of the Fox River in the City of De Pere.
• Harbor Assistance Program: $15 million SEG. Also, $20 million SEG for a Port of Green Bay development project and $15 million SEG for Menominee Harbor dredging.
• Airport Improvement Program: $195,500 SEG in FY 26 for the Lakeland Airport in Vilas County for repair and improvement of taxiways and runways and the installation of an approach lighting system.
• Columbia County Railroad Bridges: $100,000 from the local government fund for three railroad bridge repairs in the county.

Safety

• Work Zone Safety Pilot Program: $600,000 SEG in FY 2026 for WisDOT to establish a pilot program to test the effectiveness of enhanced highway work zone safety measures.
• Work Zone Safety Educational Program: One-time SEG funding of $60,000 annually for an online work zone safety education program.

Other

• Exemption from local zoning requirements for borrow and material disposal sites: Exempts borrow and material disposal sites from local zoning requirements for construction site erosion control and storm water management. These sites are already exempt from other general local zoning statutes.

Programs not listed above, like Mass Transit Aids and Passenger Rail Operating Assistance, remain at FY 2025 base levels.

What's Next

The Assembly and Senate may convene as soon as this morning, July 2, to vote on the budget bill. Once the legislature approves the budget and sends it to the governor, he has six days (excluding Sundays) to exercise his veto authority.

LFB Comparison



See more details in the Legislative Fiscal Bureau Comparative Summary of Budget Recommendations - Governor and JFC.