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H0535
Idaho Transportation Funding Changes
Last scannedAug 24, 2026, 7:59 AM
In one sentence
This bill changes how Idaho splits money from fuel taxes and vehicle fees between the state, local governments, and specific transportation projects.
What it does
- Sets a split of highway funds so that 40% goes to local units of government and 60% goes to the state highway account starting in fiscal year 2025.
- Removes previous limits on how much revenue from fuel taxes can be used for certain accounts.
- Directs money collected from fees on electric, hybrid, and plug-in vehicles into the same split as other highway funds.
- Increases the amount of gasoline tax money sent to the local bridge inspection account each year.
- Updates rules for distributing taxes collected on special fuels.
Who it affects
- Local units of government that receive a share of transportation funding
- The state highway system and its dedicated accounts
- Owners of electric, hybrid, or plug-in vehicles who pay registration fees
Limits and unknowns
- The bill text does not state the exact dollar amounts that will be collected from fuel taxes.
- The effective date is listed as pending in the official status, so it may take time to become law after passing both chambers.
- Some specific details about how off-road vehicle funds are used were cut off at the end of the provided text.
Plain language
Terms to know
- Highway Distribution Account
- A state treasury account that holds money from fuel taxes and vehicle fees before it is split up.
- Apportionment
- The process of dividing a total amount of money into specific shares for different groups or accounts.
Official record
Sources
Official summary
Transportation, funding, fuels
Official activity
Bill history
- H Transp