Auto Insurance

US Spent Nearly 25% More Per Person on Highways in 2020 Than in 2011

Alaska spent the most ($1,858) per person on highways in 2020, while Arizona spent the least ($425). But Rhode Island also stood out for more than doubling its highway spending per person between 2011 and 2020.
Construction workers build new highway lanes.
Construction workers build new highway lanes. Source: Getty Images

President Joe Biden signed a $1 trillion bipartisan infrastructure bill in November 2021 that included $110 billion for improving roads and bridges.

This massive investment signals to the future, shedding light on a widespread need to increase highway spending in the U.S. It continues a trend, as highway spending increased by nearly 25% per person over the previous decade, according to the newest ValuePenguin study.

We’ll break down the latest state-by-state data on per-person highway spending and look at what’s changed in the past decade between the 2011 and 2020 fiscal years.

Key findings

  • The U.S. spent $616 a person in fiscal year 2020 — Oct. 1, 2019, to Sept. 30, 2020 — on highway construction, maintenance and operation. That’s a 24.7% increase from $494 in fiscal year 2011.
  • Alaska spent the most per person on highways. The state spent $1,858 a person in fiscal year 2020 — just over $300 a year more than North Dakota ($1,549). Even though Alaska invested heavily in highways, related spending in the state was less in fiscal year 2020 than in the 2018 and 2011 fiscal years.
  • Arizona spent the least per person on highways. The state spent $425 a person in fiscal year 2020 — up 10.9% from $383 in fiscal year 2011. In fiscal year 2011, five states — Georgia, Michigan, Rhode Island, South Carolina and Tennessee — spent less per person on highways than Arizona.
  • Rhode Island more than doubled its highway spending from fiscal year 2011 to fiscal year 2020. Highway spending per person jumped from $329 in fiscal year 2011 to $666 in fiscal year 2020 — a 102.3% increase. Michigan (66.3%) and Nebraska (61.8%) were the next-highest spending jumpers.

Highway spending in the U.S. jumped nearly 25% per person between 2011 and 2020

U.S. highway spending rose from $494 a person in fiscal year 2011 to $616 a person in fiscal year 2020. (A federal government fiscal year runs from Oct. 1 through Sept. 30. For example, fiscal year 2011 began on Oct. 1, 2010.) This represents an increase of 24.7%.

Here’s a closer look with details from additional fiscal years:

Per-person highway spending in the U.S.
Fiscal year 2020$616
Fiscal year 2019$613
Fiscal year 2018$592
Fiscal year 2011$494

Source: ValuePenguin analysis of U.S. Census Bureau Annual Survey of State and Local Government Finances data, via the Urban-Brookings Tax Policy Center.

Highway spending includes the construction, maintenance and operation of highways. But the definition from the U.S. Census Bureau Annual Survey of State and Local Government Finances, from which the data originated, is more expansive. Streets and related structures, including toll highways, bridges, tunnels, ferries, street lighting and snow and ice removal, are included in the highway spending figures.

From fiscal year 2004 to fiscal year 2008, per-person highway spending rose each year. Then the U.S. encountered the Great Recession from December 2007 to June 2009. Highway spending in fiscal year 2009 dropped by $3 a person before mainly remaining stagnant in fiscal year 2010 with an increase of $1 per person.

Early in our main observation period — fiscal year 2011 — the U.S. economy was still digging its way out of the effects of the Great Recession. Real gross domestic product wouldn’t rise to pre-recession levels until around halfway through the 2011 calendar year. It wasn’t until fiscal year 2014 that the steady highway spending increases began again.

Fast-forward to fiscal year 2020, which brought the start of the coronavirus pandemic. Because budgets are set in advance, spending in this fiscal year would primarily have been determined before the true impacts of the pandemic could be felt — economically speaking. It’ll be interesting to see where highway spending in fiscal year 2021 lands (more on this next).

For context between fiscal years 2011 and 2020, per-capita highway spending was greater than per-capita police spending and lower than per-capita health and hospital spending.

Where highway spending is headed

Fiscal year 2020 saw the start of impacts from the pandemic, including supply chain issues and a decrease in driving as many Americans stayed home in an attempt to flatten the COVID-19 curve. During this time, infrastructure workers were deemed essential, allowing them to continue their work. Despite this, about 1 in 5 miles of highways and major roads in the U.S., as well as 45,000 bridges, were considered to be in poor condition as of 2021, according to a White House report.

Since then, however, the government has passed a $1 trillion infrastructure bill. It includes funds to repair and rebuild roads and bridges, giving special attention to:

  • Climate change mitigation
  • Resilience
  • Equity
  • General safety

It also includes the creation of the first Safe Streets and Roads for All program to help reduce traffic fatalities.

"Investing in transportation doesn’t just make roads safer, it also saves people money," says Nick VinZant, ValuePenguin auto insurance expert. "Between damage to your vehicle, reduced gas mileage, and increased wear and tear, poor road infrastructure costs drivers as much as more than $1,000 a year. So, investing in infrastructure repair will ultimately save people money. Unfortunately, however, I don’t see this spending trend continuing. People are driving less, gas tax revenue is down, and while the latest infrastructure bill is large, it’s also the first major one in decades."

In fact, compared to other major spending programs in the U.S. (like higher education, hospitals and public welfare), highways and roads have grown the least over the past 45 years or so. Given that context, as well as the $1 trillion price tag, it’s no wonder that the White House itself called the bipartisan bill a "once-in-a-generation investment in our nation’s infrastructure."

Alaska spent the most per person on highways

Alaska spent $1,858 a person in fiscal year 2020 — just over $300 a year more than North Dakota ($1,549), which spent the second-highest amount on highways.

Part of this may be because Alaska is so vast (it’s the largest state by square miles in the U.S.), it’s isolated (the state capital, Juneau, for example, can only be accessed by ferry), and it tends to receive extreme weather, including blizzards. In fact, many of the state’s main highways run over thaw-unstable permafrost, which can cause warping, sinkholes, cracks and pooling water. Those can all pose significant risks to drivers, especially as climate change continues to have an impact.

Despite Alaska’s heavy investing in highways, however, related spending in the state was lower in fiscal year 2020 than it was in either the 2018 or 2011 fiscal years — despite seeing an uptick from the 2019 to 2020 fiscal year. And it’s only one of six states where spending has dropped since the 2011 fiscal year. (More on this later.) So it seems the ​estimated $3.7 billion from the infrastructure bill that would go to the state’s roadways and bridges over five years could be coming just in time.

States with the highest per-person highway spending

Rank
State
Per-person highway spending, fiscal year 2020
1Alaska$1,858
2North Dakota$1,549
3Wyoming$1,366
3South Dakota$1,366
5Vermont$1,082

Source: ValuePenguin analysis of U.S. Census Bureau Annual Survey of State and Local Government Finances data, via the Urban-Brookings Tax Policy Center.

Other top-ranking states in this spending category include North Dakota (No. 2), Wyoming and South Dakota (tied for No. 3), and Vermont (No. 5). Notably missing were any states in the South.

Arizona spent the least per person on highways

Arizona spent $425 a person in fiscal year 2020, up 10.9% from $383 in fiscal year 2011.

In some ways, this isn’t unexpected. For example, Arizona has the 12th-lowest per-capita annual spending per capita, according to data analyzed by the Kaiser Family Foundation. The state’s budgets have also heavily favored education funding from the 2010 to 2020 fiscal year. (Meanwhile, transportation is lumped into the "other" category.) The infrastructure bill is expected to provide an estimated $5.3 billion over five years to address the state’s highways and bridges.

Interestingly, however, in fiscal year 2011, five other states — Georgia, Michigan, Rhode Island, South Carolina and Tennessee — spent less per person on highways than Arizona.

States with the lowest per-person highway spending

Rank
State
Per-person highway spending, fiscal year 2020
1Arizona$425
2Tennessee$427
3Missouri$449
4South Carolina$462
5Louisiana$469

Source: ValuePenguin analysis of U.S. Census Bureau Annual Survey of State and Local Government Finances data, via the Urban-Brookings Tax Policy Center.

Although Arizona had the lowest per-capita highway spending in fiscal year 2020, the other four lowest-ranked states weren’t far behind, spending just $2 to $44 more per person in the examined period.

Another interesting point: South Carolina — with the fourth-lowest per-person highway spending — has the highest fatality rate per 100 million vehicle miles traveled.

Full rankings: Per-person spending on highways by state

Rank
State
Per-person highway spending, fiscal year 2020
1Alaska$1,858
2North Dakota$1,549
3Wyoming$1,366
3South Dakota$1,366
5Vermont$1,082
6Iowa$1,033
7West Virginia$1,032
8Nebraska$1,009
9Montana$960
10Minnesota$952
11Maine$853
12Pennsylvania$851
Show All Rows

Source: ValuePenguin analysis of U.S. Census Bureau Annual Survey of State and Local Government Finances data, via the Urban-Brookings Tax Policy Center.

How highway spending has changed since 2011

Some states greatly increased their highway spending from fiscal year 2011 to fiscal year 2020. Rhode Island, for example, more than doubled its highway spending during this time, going from $329 a person in 2011 to $666 a person in 2020.

The state has long been known for having many roads and bridges in poor quality, due to a lack of funding. But there was a marked change in 2016 with RhodeWorks, an act that:

  • Allowed the state to charge tolls on large commercial trucks
  • Established a 10-year plan to improve Rhode Island’s roads and bridges

That could help explain why the state saw a significant jump in per-capita highway spending from 2011 ($329) to 2018 ($502). In fact, as of fiscal year 2020, charges, like highway tolls, represent one of the state’s largest revenue sources after federal transfers. And transportation jobs in the state rose by almost 4% from 2008 to 2018.

Michigan (63.3%) and Nebraska (61.8%) were the next-highest spending jumpers. One interesting point is that Nebraska’s 2011 highway spending was roughly on par with Rhode Island’s 2020 spending. And Nebraska is about 50 times the size (in square miles) of Rhode Island, so it appears that the per-capita spending is going much further in the first-ranked state.

At the opposite end of the spectrum, six states saw a decrease in highway spending from the 2011 to 2020 fiscal year. The bottom three ranking states in this category were:

  • Louisiana
  • Alaska
  • Missouri

Louisiana’s economy likely contributed to it placing last. For example, less than 60% of the state’s population (16 and older) are in the civilian workforce, and per-capita income is less than $30,000 — both below the national average. Employment also decreased from 2019 to 2020, even as the U.S. at large added jobs.

Full rankings: Changes in per-person highway spending between 2011 and 2020

Rank
State
Per-person highway spending, fiscal year 2020
Per-person highway spending, fiscal year 2019
Per-person highway spending, fiscal year 2018
Per-person highway spending, fiscal year 2011
% change between 2011 and 2020
1Rhode Island$666$602$502$329102.3%
2Michigan$574$516$463$35163.3%
3Nebraska$1,009$869$847$62461.8%
4Georgia$471$411$415$29659.0%
5Texas$670$825$768$42756.9%
6Iowa$1,033$954$900$68750.4%
7West Virginia$1,032$855$729$70246.9%
8California$577$507$457$39546.2%
9Nevada$756$637$697$51846.0%
10Virginia$650$655$655$44745.3%
11North Carolina$567$634$559$39742.9%
12South Carolina$462$442$463$33040.2%
Show All Rows

Source: ValuePenguin analysis of U.S. Census Bureau Annual Survey of State and Local Government Finances data, via the Urban-Brookings Tax Policy Center.

Road conditions damaged your car: 4 steps to follow

Poor road conditions can lead to car accidents and damages — and that means drivers can pay the price. These kinds of damages can also complicate the claims process and lead to higher auto insurance premiums over time. Here are the steps you’d need to take if it happens to you:

  1. File a claim with the entity responsible for maintaining the road: "If your car was damaged in a construction zone, you can also file a claim against the construction company because they are responsible for keeping the road safe during construction," VinZant says. "To file a claim, make sure you document the damage done and exactly where you were when it happened, because it can be difficult to figure out who is responsible for what section of the road." It might be your city, county or state, and a 30-day time limit may be imposed for claims.
  2. Get an estimate: "You should also get an estimate for the cost of repairs," VinZant says. "If your claim is denied, this will help you determine if filing a claim with your insurance company is worth it."
  3. Consider notifying your insurance company: If the government isn’t going to cover the damages and you’d rather file a claim with your insurer (which could impact your premiums going forward) than cover the damages yourself, you’ll need to notify your insurer of the accident or incident. Assuming you have collision coverage, your auto policy should cover things like potholes. But you should note that wear and tear caused by bad road conditions wouldn’t be covered.
  4. Report the road condition: If nothing else, reporting the road condition may help prevent others from experiencing the same poor road conditions as you. And if it’s an area you frequent, it could help lower your incidents, too.

Methodology

Researchers analyzed data via the Urban-Brookings Tax Policy Center (originated by the U.S. Census Bureau Annual Survey of State and Local Government Finances) to highlight the states that spent the most — or least — per person on highways in fiscal year 2020 — Oct. 1, 2019, to Sept. 30, 2020.

Additionally, we tracked the change in per-person highway spending from fiscal year 2011 to fiscal year 2020. We also highlight fiscal years 2018 and 2019 data to show more recent changes.