State funding cuts put local highway projects on hold, here’s what’s affected

IDAHO FALLS — Several highway projects across eastern Idaho could be delayed as the Idaho Transportation Department (ITD) scales back future construction plans following major cuts to state transportation funding.

The projects are among nearly 70 highway improvements across Idaho that have been placed on an “unfunded” list after state lawmakers eliminated a key transportation funding source. As a result, ITD is shifting its focus away from building new highway capacity and toward maintaining and repairing existing roads and bridges.

The department recently released a draft seven-year transportation plan that moves nearly $1.3 billion in planned highway projects into an unfunded category, meaning they will not move forward unless additional funding becomes available.

According to ITD officials, an additional $1.5 billion in congestion relief projects is also expected to stall until the state’s bonding program is re-implemented in the future.

The changes stem from the Legislature’s decision earlier this year to eliminate funding for the Strategic Initiatives Program, which previously provided $275 million annually for transportation projects, including $165 million for state highways and $110 million for local highway districts.

“The funding reductions affected all agencies,” ITD spokeswoman Sky Buffat said. “We’re grateful to have legislators who continue to support transportation, and we remain hopeful funding for future improvements will be restored.”

Maintaining roads comes first

With fewer dollars available, ITD officials say the department is relying on what it calls the OPRE approach, a strategy that prioritizes maintaining Idaho’s transportation system before expanding it.

According to District 6 ITD District Engineer Jason Minzghor, the department follows the OPRE approach, which prioritizes projects in the following order:

• Operate: Keep roads open and safe through snow removal, pothole repairs, striping, guardrail repairs and other routine maintenance.
• Preserve: Extend the life of roads and bridges through preventive maintenance.
• Restore: Repair or rehabilitate aging highways and bridges.
• Expand: Build new lanes, interchanges and other capacity improvements only if funding remains.

“The first three priorities are about taking care of what we already have,” Minzghor said. “Expansion projects are important, but they have to come after those needs are met.”

Local projects pushed back

For eastern Idaho drivers, the funding cuts mean several long-anticipated highway improvements may take longer than expected.

According to ITD, among the projects moved to the unfunded list are:

• Advanced purchase of right-of-way for an improved I-15 connector to U.S. Highway 20.
• Improvements along U.S. 20 west of Idaho Falls toward Arco beyond the first ten miles.
• A planned third travel lane on U.S. 20 between Rigby and Idaho Falls.
• Widening US-20 from Chester to Ashton to a four-laned divided highway.

Buffat said the projects have not been canceled, but their construction timelines are now uncertain until additional funding becomes available.

ITD is accepting public comments on its draft seven-year transportation investment program through July 31. Residents can review proposed projects and submit comments using the department’s interactive online map or by email, phone or mail.

Buffat encouraged Idahoans to take advantage of the public comment period, noting that every comment is read and considered.

See the link below for additional information and how to comment.

RELATED: Idahoans encouraged to comment on highway projects after funding cuts

“People fear that Idaho has lost all transportation funding,” Minzghor said. “That’s simply not the case. We still have a lot of great work going on. We just may not be able to do it in the same time frame.”

He said ITD will continue developing projects behind the scenes, so they are ready to move forward if funding is restored.

“The good thing is our team is continuing to plan and develop these projects,” Minzghor said. “If the funding outlook changes and we’re authorized to move forward, we’ll be ready.”

Looking ahead

Despite the funding uncertainty, ITD officials emphasized that road maintenance, preservation projects and many ongoing construction projects will continue.

According to the department’s 2025 annual report, consistent funding is critical because it enables ITD to plan major infrastructure projects years in advance, retain experienced employees, and keep construction costs under control.

“Budget insecurity threatens ITD’s ability to advance long-term planning and multi-year projects,” the report states.

Buffat said ITD remains prepared to deliver future highway improvements when funding becomes available, with planning and design phases of projects still continuing as originally planned.

“It’s easy to be fearful,” she said. “But ITD stands ready to make sure that transportation will remain operable, repaired, and economically feasible with state routes that will keep people on the road.”