JFC Ramps Up Work on 2025-27 Budget

The Joint Finance Committee wrapped up its final public hearings on the 2025-27 state budget late last month. Testimony highlighted a wide range of challenges, including school funding, services for older adults, childcare, and transportation infrastructure.

As the budget process moves forward, several procedural steps are expected. One of the first actions the committee took was the removal of non-fiscal policy and other items from the governor’s proposed budget.

Lawmakers are also awaiting updated revenue estimates from the Legislative Fiscal Bureau, which are expected in mid-May. These numbers will help guide major budget decisions.

Meanwhile, federal developments may influence the state’s planning. Congressional negotiations over a potential reconciliation bill could include Medicaid cuts, with House Speaker Mike Johnson aiming for completion by Memorial Day. In addition, many lawsuits related to spending cuts, either by executive order or administrative action, are going through the courts.

Wisconsin’s current budget remains in effect until a new one is signed. Unlike at the federal level, state government operations continue without interruption, even if the budget is not finalized by July 1.

The Joint Committee on Finance will address the state’s most pressing budget priorities in earnest, following the release of updated fiscal projections in mid-May. Fortunately, the TDA Drive-in aligns perfectly, offering an ideal opportunity to share our compelling closing message: Transportation delivers.

Join us for an engaging and impactful experience.

Tuesday, May 20

10:00 a.m. to 12:30 p.m.

Morning Briefing and Lunch – Monona Terrace

Confirmed speakers include Secretary Boardman, Assembly Speaker Vos, and Senate Assistant Majority Leader Feyen.

12:30 to 2:30 p.m.

Office Visits/Literature Drop – State Capitol

Monday, May 19 – Cocktail Reception at the Great Dane

If you are in town the night before, please meet us at the Great Dane in downtown Madison (123 E Doty St, Madison, WI 53703) for drinks and finger foods. The reception will run from 4:30 to 7 p.m. 

Please RSVP

There is no fee for either event, but we'd appreciate an RSVP.

We know May is a busy time, and our Drive-in conflicts with several other events. If you can not attend, please consider sending someone from your organization.

Click here for event information and to RSVP.

House T&I Reconciliation Bill Includes National EV and Hybrid Fees

The House Transportation and Infrastructure Committee on April 30 approved its budget reconciliation proposal, including $34.1 billion to tackle capital backlogs at the Federal Aviation Administration and U.S. Coast Guard. This funding is offset by $4 billion in rescissions from unobligated balances in the Inflation Reduction Act and a new national registration fee for electric and hybrid-electric vehicles, projected to generate approximately $40 billion. This new fee will allow the committee to meet its goal of at least $10 billion in net deficit reduction over 10 years, as instructed in the House FY 2025 budget resolution.

Initially, the bill proposed a $200 annual fee for electric vehicles, $100 for hybrids, and a $20 fee for other vehicles starting in 2030. After backlash, Chairman Sam Graves amended the bill, scrapping the $20 fee, raising the EV fee to $250, and trimming $3.9 billion from the appropriations. 

The measure indexes the new fees to inflation and dedicates the revenue to the Highway Trust Fund (HTF). If enacted, this would be the first new user fee revenue in more than 20 years.

The budget resolution requires the eleven House committees to report their legislation to the Budget Committee by May 9. Eight of eleven committees completed their work by the deadline, with the Energy and Commerce, Ways and Means, and Agriculture committees still debating and voting on their proposals, including changes to Medicaid and food stamps, to help pay for tax cuts.

The House's reconciliation package, which leadership is pushing to get on the floor next week, will combine measures from all the committees.

Should the House pass its reconciliation bill, the Senate committees will likely bypass traditional deliberations and instead engage in closed-door "Byrd bath" discussions to determine the relevance of House provisions. The "Byrd Rule" restricts the inclusion of non-budgetary items in reconciliation bills, adding another layer of complexity to the legislative process.

Hill Republicans aim to deliver a legislative package to President Trump's desk by July 4. The package includes a debt-limit increase, which Treasury Secretary Scott Bessent has prioritized for completion by mid-July, warning that the U.S. is on track to run out of money to pay its bills as early as August. 

The U.S. Department of Transportation has recently greenlit 405 infrastructure grants totaling $5 billion, beginning to chip away at a backlog of over 3,200 unexecuted project grant agreements from the prior administration.

The grants, part of programs like the Federal Highway Administration’s Bridge Investment Program and the Maritime Administration’s Port Infrastructure Development Program, aim to expedite critical infrastructure upgrades. Wisconsin projects in the latest announcement include:

• City of Racine, 2022 Low or No Emission (Bus) Grant: $3,794,014 to modernize transit system by replacing four diesel buses with battery-electric buses to locally address climate change, build on zero-emission fleet transition, and reduce barriers to opportunity.       
• City of Beloit, 2023 Low or No Emission (Bus) Grant: $653,184 for parking lot replacement/transit headquarters garage facility.
• Lac Courte Oreilles Band of Lake Superior Chippewa Indians of Wisconsin, 2024 Tribal Transit Competitive Grant: $49,696.
• Forest County Potawatomi Community (FCPC), 2022, BUILD: $9,531,340 for the FCPC Pathway to Wellness Multimodal Safety & Connectivity Project.
• City of Superior, 2023-4, Railroad Crossing Elimination Grant: $1,988,800 for the 28th Street grade separation
• City of Appleton, 2024, Buses and Bus Facilities Competitive Grant: $12,000,00 for facility renovation.

USDOT Rescinds Greenhouse Gas Rule for Highways

U.S. Transportation Secretary Sean P. Duffy announced the rescission of a rule requiring state transportation departments to measure and set declining targets for carbon dioxide emissions on federally funded highways. The move, announced on April 18, marks the first major deregulatory action of the U.S. Department of Transportation (USDOT) under President Donald Trump's current term.

The rule, rescinded during the first Trump Administration and reinstated by the Biden administration, faced legal challenges, with two federal judges ruling that USDOT lacked the authority to issue such a mandate. 

Industry groups have expressed support for the decision. The American Association of State Highway and Transportation Officials (AASHTO) appreciated the repeal, noting that Congress considered the performance measure rule but ultimately excluded it from the Infrastructure Investment and Jobs Act negotiations in 2021. 

Similarly, the American Road & Transportation Builders Association (ARTBA) and the American Trucking Associations (ATA) praised the move. ARTBA President Dave Bauer called the repealed mandate "unnecessary" and "ideologically driven." ATA Senior Vice President Dan Horvath argued that the rule would have imposed "bureaucratic barriers" and increased project costs. 

Environmental advocates have criticized the rescission, expressing concerns that it undermines efforts to address climate change and promote sustainable infrastructure development. 

The USDOT's action reflects the administration's broader commitment to reducing regulatory burdens and prioritizing infrastructure projects that enhance mobility and economic growth.

Brown County officials launched construction of the long-awaited South Bridge Connector project with a groundbreaking ceremony May 13, marking a milestone for a bypass route over the Fox River. The project, decades in the making, will link Interstates 41 and 43 across Lawrence, De Pere, and Ledgeview.

Brown County Executive Troy Streckenbach joined area leaders at the corner of Packerland Drive and Scheuring Road to kick off the project. The first phase, EB-39, includes building a roundabout and connecting County Highway F to the west of a new Interstate 41 interchange and Lawrence Drive to the east. The second phase, GV-14, will extend County Highway GV from French Road to Lawrence Drive. A new bridge over the Fox River, part of later phases, is slated for completion in 2027.

The corridor, designed with a 40 mph speed limit and boulevard-style roads, is expected to enhance traffic flow and support regional commerce. Local leaders noted the project’s potential to unleash economic growth in the area.

The total cost of the South Bridge Connector project is approximately $180 million, funded by federal, state, and local sources. Construction on the initial segments will continue through 2026, with future phases planned through 2030.

In the first four months of the year, thirty-nine states introduced 154 bills related to transportation investment, including the governor's budget proposal in Wisconsin, according to ARTBA's Transportation Investment Advocacy Center (ARTBA-TIAC). Twelve of these bills have already been signed into law. 

Key highlights include: 

• Mississippi: On March 27, the state enacted a nine-cents-per-gallon increase in the gas tax, with plans for automatic adjustments every other year.  
• Wyoming: A bill was signed into law on March 3 to allocate sales and use taxes collected on motor vehicles and trailers from the general fund to the highway fund.
• Maryland: Legislators voted on April 7 to increase various transportation-related fees and create a new tire fee, which is expected to generate an estimated $500 million in new revenue annually.
• Ohio: Voters approved on May 6 the renewal of the state’s 10-year, $2.5 billion infrastructure bond, a program that was first approved by voters in 1987.
• Washington State: A bill is currently awaiting final approval by Governor Bob Ferguson (D). It proposes a six-cents-per-gallon increase in state motor fuel taxes, annual indexing at two percent, various increases in vehicle-related taxes and fees, a dedication of a portion of the state sales tax to transportation, and the enactment of a new fee on luxury vehicles.

Visit transportationinvestment.org to track state transportation measures.

May Project Spotlight

$75M air cargo project at MKE expected to drive economic activity

For years, Wisconsin has lacked an air cargo hub that matches the scope and efficiency of major facilities, such as Chicago’s O’Hare Airport, forcing Badger State businesses to rely on out-of-state operations.

A new multimillion-dollar air cargo facility at Milwaukee Mitchell International Airport makes use of the underutilized former 440th Airlift Wing campus, transferred to the airport in 2008. This site, now known as the MKE Regional Business Park, has mainly been vacant over the years. Construction of this new facility will transform this underdeveloped space into a vital logistics hub for Wisconsin businesses.

Read more.

Help us tell your story!

We’ve launched a user-friendly portal where you can upload an image and a few basic details. Our team can then write a short narrative that captures the significance of the projects in your part of the state.  

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Thank you to our 2025 Organizational Sponsors

TDA Events

• Madison Drive-in, May 20
• Annual Meeting, Nov. 13

Upcoming Events

WCHA 2025 Summer Highway Conference 

June 2 - 4, 2025

Chula Vista Resort

Wisconsin Dells

TDA's Debby Jackson will provide a federal legislative update on June 2.

Registration is open for the 2025 Summer Highway Conference.

If you would like TDA to consider including your organization's update or event in an upcoming newsletter, please forward information to Luke Pearson at luke.pearson@tdawisconsin.org.