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Transportation Funding Adjustments

Concerning adjustments to transportation funding.

HB26-1430 2026 Regular Session Signed into Law State Revenue & Budget Transportation & Motor Vehicles

Cost estimates

At the first note read
Conditional only
FACT May 5, 2026
At the last note read
Conditional only
FACT September 8, 2026
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

The bill requires money it does not carry — the note says an appropriation is required and does not say the bill includes one.

An appropriation is money the legislature sets aside. It is not money spent.

The appropriation field, read from the note: For FY 2026-27, the bill requires appropriations totaling $98,836 to various agencies. The State Highway Fund and Support Road Transportation Fund are continuously appropriated to CDOT.

Bill summary

     Contingent upon voter approval at the November 2026 general election of a proposed initiative to amend the state constitution to change existing law on transportation funding and to increase the amount of state revenue dedicated to road transportation (proposed initiative), from January 1, 2027, through July 1, 2030, the act reduces:

  • The excise tax on gasoline from $0.22 per gallon to $0.14 per gallon;
  • The excise tax on special fuel from $0.205 per gallon to $0.13 per gallon;
  • Certain vehicle registration fees, including late fees; and
  • The road usage fees from $0.06 per gallon to $0.04 per gallon and then, beginning in state fiscal year 2027-28, as necessary to offset the amount of state revenue diverted to transportation uses as the result of the proposed initiative.

     The act creates the support road transportation fund (fund) contingent upon voter approval of the proposed initiative. The fund consists of state revenue dedicated to road transportation by the proposed initiative. Money in the fund is used to replace certain transportation-related general fund transfers for payments for the financed purchase of assets or certificate of participation agreements, and to replace certain general fund transfers to the state highway fund. The money remaining in the fund after making these transfers is allocated as follows:

  • 60% is paid to the state highway fund;
  • 23% is paid to counties for certain transportation expenses; and
  • 17% is paid to cities and incorporated towns for certain transportation expenses.

     The act clarifies that state revenue collected to support road transportation, as defined in the proposed initiative, does not include enterprise fee revenue.

     The act creates the road enterprise to complete preventive maintenance, repair, rehabilitation, and reconstruction projects to improve the condition of the roadway surface of the state highway system. The road enterprise is authorized to impose fees for oversize and overweight vehicles and longer vehicle combinations. The creation of the road enterprise is not contingent upon voter approval of the proposed initiative.

     Contingent upon the proposed initiative being withdrawn or not submitted for the November 2026 general election, the act creates the transportation funding working group to evaluate and make recommendations to the general assembly, the transportation commission, and the governor concerning funding state and local surface transportation maintenance, repair, capacity, and safety.

     Lastly, the act reduces the July 1, 2026, transfer from the general fund to the state highway fund from approximately $50 million to $500,000.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)