# Virginia Addresses Highway Maintenance Funding Shortfall

Virginia faces a significant **$1.7 billion shortfall** in highway maintenance funding starting fiscal year 2027, prompting the Virginia Department of Transportation (VDOT) to consider reallocating funds from construction programs such as the Smart Scale initiative to cover maintenance needs. While federal support from the Infrastructure Investment and Jobs Act (IIJA) provides partial relief, the structural funding gap threatens road safety and delays future construction projects across the state.

- VDOT's potential fund reallocation will reduce budgets for new construction projects, impacting contractors and suppliers focused on Virginia's highway infrastructure expansion.
- Procurement professionals should anticipate shifts in contract opportunities, with increased emphasis on maintenance and rehabilitation services over new construction.
- Long-term procurement planning must account for constrained budgets and evolving priorities driven by state-level funding challenges.
- Stakeholders may find opportunities in maintenance-related contracts and should engage with VDOT and the Commonwealth Transportation Board to understand evolving procurement strategies.

**Jurisdictions:** sled
**Industries:** Construction & Infrastructure
**Topics:** Physical Infrastructure
**Published:** September 19, 2026

### Government Entities
- Virginia Department of Transportation (VDOT)
- Commonwealth Transportation Board (CTB)
- State of Virginia

### Key Quotes
> There is no mitigation strategy that makes this not painful. This is going to be painful no matter what we do moving forward.
> — Nick Donohue, Secretary of Transportation

### Sources
- [Virginia confronts $1.7 billion shortfall in highway maintenance funding – WTOP News](https://wtop.com/virginia/2026/09/virginia-confronts-1-7-billion-shortfall-in-highway-maintenance-funding) - WTOP News