Federal, State and Local Transportation Funding

Responsibilities for funding and delivering services on the nation's transportation network are shared by federal, state and local governments. State and local governments own, operate and maintain most of the infrastructure and also provide most of the funding for surface transportation systems; federal funding accounts for approximately 20 percent of both transit and highway funding.38 State legislatures and DOTs participate in allocating federal funds to state transportation programs, generating and determining the use of state transportation revenues, and distributing transportation funds to local governments through local aid.