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ArizonaHB 4169Fifty-seventh Legislature - Second Regular SessionHouseWALLET

transportation; 2026-2027

Sponsored By: Sponsor information unavailable

Signed by Governor

2026-2027arizona highway user revenue fundstate match advantagetransportationtransportation - title 28

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 1 benefits, 0 costs, 5 mixed.

New state fund boosts rural transport grants

The law creates the State Match Advantage for Rural Transportation Fund. The state transportation department runs the fund. The fund holds state appropriations, nonfederal gifts and grants, and investment earnings. The state treasurer invests the money and earnings stay in the fund. Each year, by June 15, $2.5 million moves from the highway user revenue fund into this fund. The department may set up subaccounts to manage projects.

Two transport statutes repealed, one in 2035

The law repeals Section 28-6534 of state law. It also repeals Section 28-7282 on June 30, 2035. The second section stays in effect until that date and then ends. The exact effects depend on what those sections covered.

Help with matches, applications, and design

The fund can repay up to 50% of the cost to prepare and submit a federal surface‑transportation grant application. It can also pay or repay the local match needed for federal discretionary transportation grants. It can fund federally compliant design and engineering work. Applicants must be eligible for the federal grant. If a design or engineering awardee does not apply for the federal grant within two years, the award ends and any spent money must be repaid within 30 days after invoicing.

Local approval and faster board decisions

Applicants must first get approval from their metropolitan planning organization or council of governments. The department checks if the application meets the federal funding notice or statute and has that local approval. After a committee makes a recommendation, the board chair must place the application on an agenda within 45 days. The board may prefer applications with higher local match, partnerships, or other grant‑specific strengths. The board can approve, deny, or modify an award. If approved, the department signs an agreement that sets reimbursement terms and allowed costs.

Money split by size, big cities limited

The department must split fund money into five equal shares of 20% each. The shares cover counties with 100,000+ people, counties under 100,000, municipalities with 10,000+, municipalities under 10,000, and a department‑selected pool. These shares support match and federally compliant design uses. Projects in urbanized areas of counties with more than 1,000,000 people are not eligible for the municipal pools or the department’s 20% share. Projects in a county over 1,000,000 are also not eligible for the county 100,000+ pool. Urbanized areas and populations use the latest U.S. Census data.

Rules for admin costs, reallocation, posting

Each year, the department may use up to 5% of last year’s investment earnings to run the fund, with board approval. If a match awardee fails to win the linked federal grant, that money becomes available to other applications. On January 1 and July 1, the board may rebalance unawarded money so each category returns to its 20% share. The department must post the new amounts within 30 days. The board may close application categories when money is tight and return unawarded applications. If an awardee gets equal or more money from another source for the same purpose, the board must cancel the award and any spent money must be repaid within one year.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • David Livingston

    28 • House

  • Julie Willoughby

    13 • House

  • Michael Carbone

    25 • House

  • Neal Carter

    15 • House

  • Steve Montenegro

    29 • House

Roll Call Votes

All Roll Calls

Yes: 31 • No: 5

House vote • 6/11/2026

THIRD: Passed

Yes: 23 • No: 5

House vote • 6/10/2026

C&P

Yes: 8 • No: 0

Actions Timeline

  1. Signed by Governor

    6/13/2026Governor

  2. Senate First Reading

    6/11/2026Senate

  3. Third Reading: Passed

    6/11/2026House

  4. Miscellaneous Motion: Passed

    6/11/2026House

  5. Third Reading: Passed

    6/11/2026House

  6. Committee of the Whole: do pass

    6/11/2026House

  7. House Second Reading

    6/10/2026House

  8. undefined: C&P

    6/10/2026House

  9. undefined: DP

    6/10/2026House

  10. House First Reading

    6/9/2026House

Bill Text

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