appropriation; rural transportation fund

Plain English Breakdown

The official text confirms the $15 million appropriation and fund usage but does not specify an effective date or detailed project selection criteria beyond population-based allocation percentages.

HB2760: Funding for Rural Transportation Projects

This bill moves $15 million from the state's main budget to a special fund that helps pay for transportation projects in Arizona.

What This Bill Does

• Sets aside $15,000,000 from the General Fund for fiscal year 2027.
• Sends this money to the State Match Advantage for Rural Transportation (SMART) fund.
• Allows the SMART fund to pay up to half of costs for applying for federal grants.
• Permits the use of funds to match or repay matches required by federal grants.
• Pays for design and engineering work that meets federal standards.

Who It Names or Affects

• The Arizona Department of Transportation (ADOT), which manages the fund.
• Counties with populations over or under 100,000 people.
• Cities with populations over or under 10,000 people.

Terms To Know

General Fund

The main pool of money the state uses for its regular operations and services.

SMART fund

A special account created to help pay for transportation projects in rural areas.

Federal grant match

Money a state or local group must provide to qualify for funding from the federal government.

Limits and Unknowns

• The bill does not list an effective date in this text.
• This summary only covers the $15 million appropriation and does not detail how ADOT will choose specific projects beyond population rules.
• Future funding for years after fiscal year 2027 is not included in this document.

Official Summary Text

HB2760 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

HB
2760
: appropriation; rural transportation fund

Sponsor:
Representative Nguyen, LD 1

Committee
on Transportation & Infrastructure

Overview

Appropriates
$15,000,000 from the state General Fund (GF) in FY 2027 to the State Match Advantage
for Rural Transportation (SMART) fund.

History

Laws 2022,
Chapter 322
, established the SMART fund, consisting of monies
appropriated by the Legislature and any nonfederal gifts, grants, donations or
other amounts received from any public or private source for transportation
projects. The Arizona Department of Transportation (ADOT) must administer the SMART
fund and SMART fund monies are continuously appropriated.

On notice from ADOT, the State Treasurer must invest and
divest monies in the SMART fund and monies earned from investment must be
credited to the SMART fund.

SMART fund monies must be used only for:

1.

reimbursing
up to 50% of the costs associated with developing and submitting an application
for a federal grant;

2.

providing
match or reimbursement of a match for a federal grant; and

3.

funding
or reimbursing design and other engineering services expenditures that meet
federal standards for projects eligible for a federal grant.

ADOT must suballocate SMART fund monies as follows:

1.

20%
percent to projects located in counties with a population of 100,000 persons or
more;

2.

20%
percent to projects located in counties with a population of less than 100,000
persons;

3.

20%
percent to projects located in municipalities with a population of 10,000 persons
or more;

4.

20%
percent to projects located in municipalities with a population of less than 10,000
persons; and

5.

20%
to ADOT (
A.R.S. � 28-339
).

Provisions

1.

Appropriates
$15,000,000 from the GF in FY 2027 to the SMART fund. (Sec. 1)

2.

3.

4.

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2760

6.

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& Infrastructure

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8.

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Current Bill Text

HB2760 - 572R - I Ver

REFERENCE TITLE:
appropriation; rural transportation fund

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2760

Introduced by

Representative
Nguyen

AN
ACT

Appropriating monies to the state match
ADVANTAGE for rural transportation fund.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1.
Appropriation;
state match advantage for rural transportation fund

The sum of $15,000,000 is appropriated
from the state general fund in fiscal year 2026-2027 to the state match
advantage for rural transportation fund established by section 28-339, Arizona
Revised Statutes.