Governor Katie Hobbs’ Executive Budget proposal for 2026 includes funding to maintain Arizona’s state highway system, address increased costs, and support rural transportation projects.
The budget sets aside $5.2 million from the State Highway Fund to help offset higher construction material prices and extend the lifespan of highway infrastructure, aiming to prevent more expensive repairs in the future. Additionally, it allocates $11.4 million from the same fund to cover baseline needs for 487.5 new lane miles across the state. These new lanes are associated with major projects such as the Interstate 10 Broadway Curve project, Interstate 17 flex lanes, and Loop 202 South Mountain Freeway.
“This reasonable and responsible budget proposal benefits Arizona families by helping ADOT maintain a transportation system that safely connects people and empowers the economy,” said Jennifer Toth, Director of the Arizona Department of Transportation (ADOT).
The proposal also provides a one-time deposit of $10 million from the General Fund into the State Match Advantage for Rural Transportation (SMART) Fund managed by ADOT. This fund assists municipalities and counties in Greater Arizona in competing for federal transportation grants by covering costs related to grant proposals, matching funds required for grants, and design or engineering services.
Since its creation in fiscal year 2023, the SMART Fund has distributed $55.2 million in state funds to rural communities, which helped them secure $174.6 million in competitive transportation grants. Projects funded include a connector road for a new commercial port of entry in Douglas ($4.4 million), replacement of Ruby Road Bridge over Potrero Creek in Santa Cruz County ($3.3 million), and flood mitigation on US 89 in Coconino County ($3.7 million).
ADOT is responsible for planning, designing, constructing, maintaining, and operating Arizona’s highway transportation system—covering over 7,000 miles of roads and more than 8,500 bridges—as well as providing driver license and registration services. The agency also oversees commercial vehicle enforcement and registration compliance, operates Grand Canyon National Park Airport, maintains the state fleet, manages rest areas and snowplow operations with specialized equipment, monitors highways using cameras [source], offers traveler updates through systems like AZ 511 [source], supports corridor studies with regional partners [source], and handles multimodal services including aviation [source].
Jennifer Toth serves as director of ADOT [source], overseeing these activities aimed at connecting people safely while supporting economic growth [source]. The department’s work extends statewide from airport facilities such as Grand Canyon National Park Airport to southern border ports [source].
For more information about ADOT’s responsibilities or ongoing projects visit their official website at azdot.gov.
