North Dakota Transportation Connection

North Dakota’s Transportation Funding & Services

Funding Sources

It all starts with the fuel tax. For each gallon of gas you purchase in North Dakota, 18.4 cents goes to the Federal Highway Trust Fund and 23 cents goes to the state. From there, both funds distribute dollars to county, city, township, and transit entities, with the largest portion directed to the NDDOT.

While fuel taxes remain a vital revenue source, they do not fully fund NDDOT’s $2.7 billion biennial budget (2025-2027). Because state and federal fuel taxes have not been raised in decades and vehicle registration fees are a smaller share of the budget, North Dakota must rely on non-traditional funding sources to make sure NDDOT has resources to address the state's growing transportation needs. In recent budgeting cycles, the State Legislature allocated funding from many sources, including oil extraction and production taxes, to help cover the gap between traditional revenues and needed investments.

For each gallon of gas you buy

Federal Highway Trust Fund
- County 8%
- City 16%
- Township 0%
- Transit 4%
State Highway Tax Distribution Fund
- County 22.4%
- City 12.6%
- Township 3.4%
- Transit 1.6%

What This Funding Supports

This funding is used to invest in infrastructure like roads and bridges, alternative transportation, freight, DMV registration services, snow and ice control, maintenance, and safety.

While this interactive funding tool focuses on the state transportation network, North Dakota’s transportation system spans county, city, township, and Tribal infrastructure statewide.

Services Provided

Transportation funding supports a wide range of essential services, including:

Roads & Bridges
Alternative Transportation
Freight
DMV & Registration Services
Snow & Ice Control
Maintenance
Safety
Local Grants

A 2024 Upper Great Plains Transportation Institute study estimates $12.36 billion in local road and bridge needs over the next 20 years, highlighting the scale of future transportation investment required statewide.

Your Monthly Costs

See how your monthly transportation costs stack up against typical household expenses.

1 What is your average miles per gallon?

2 How many miles do you generally drive each year?

3 What is the age of your vehicle?

4 What is the estimated weight of your vehicle?

You currently pay (per month):

Federal fuel taxes

$8.79

ND fuel taxes

$4.22

ND registration fees

$1.15

Transportation Costs vs. Household Expenses

See how your monthly transportation costs stack up against typical household expenses.

Energy bill

$169.86

Phone bill

$164.32

Internet bill

$92.50

Streaming media bill

$58.00

Federal/State gas taxes and registration fees

$50.55

Activity

How does North Dakota compare?

Although North Dakota’s gas tax rates remain relatively low compared to neighboring states, project costs are outpacing available funding, as state rates have been unchanged since 2005 and federal rates since 1993.

State fuel taxes stay the same even as gas prices rise and fall

Graph showing gas price and state tax between 1994 and 2025

How much does transportation cost?

Rising construction and service costs, along with increased travel demand, mean funding no longer goes as far as it once did.

North Dakota has more than more than 8,600 roadway miles on its State Highway System. With the average preventive maintenance project costing $320k per mile, 20 to 30 percent of the State Highway Tax Distribution Fund must be spent on basic repairs each year. This does not count more extensive repairs for roads and bridges with higher levels of wear-and-tear or weather-related damage. Here are some examples of transportation system costs per project (based on 2024 data).

Current Costs to Build & Maintain

Snow and Ice Control
$27.1M Per Winter Season (October through May)
Bridge Replacement
$4.3M Per Project
Lighting, Signage and Pavement Markings
$250K Per Project
Passing Lanes
$500K Per Project

For Each Mile

Shared Use Path (New Construction) $3.1M
Preventative Maintenance $320K
Pavement Resurfacing $1.1M
Major Roadway Rehabilitation $2M
Interstate Concrete Paving $3.5M

Activity

Since 2005, the cost of materials, equipment & services has increased by

415 percent

Our funding challenges

Funding Gap in North Dakota’s Transportation System

North Dakota’s transportation funding relies heavily on per-gallon fuel taxes and vehicle registration fees. As fuel efficiency improves, revenue declines. Maintaining current service levels over the next 20 years would require $24.6 billion, but projected revenues total only $10 billion—leaving a $14.6 billion shortfall.

Increased Fuel Efficiency, Decreased Tax Revenue and Increased Construction Costs lead to Growing Funding Challenges for Infrastructure Investment

According to NDDOT’s 2025-2028 Statewide Transportation Improvement Program (STIP), North Dakota is planning more than $2.7 billion in transportation investments over the next four years. In the context of rising costs, NDDOT remains in preservation mode—focused on maintaining existing infrastructure—but limited resources mean the system is deteriorating faster than it can be preserved.

Submit Your Investment Preferences

In the sliders below, either slide the green dot or click any dot to set your investment levels for each area, then see how your choices compare to current funding.

Your Investments vs. Total Budget

As you choose investments in each category, their costs are added together and displayed here relative to the total available budget.

$600M

The average driver would pay: 8.20 per month

The NDDOT's two-year budget is approximately $2.7 billion. However, this activity includes several sources of discretionary grants, one-time funding, and funds passed directly to cities and counties. Other funds are restricted in how NDDOT may spend them or are dedicated to internal administrative costs. This activity focuses on ongoing, guaranteed funding that NDDOT can use for long-term planning and investment across its program areas.

DMV

How long am I prepared to wait?

Long Moderately Long Moderately Short Short

Cost: $13.1M

The average wait time at the DMV is 30 minutes and appointments take 7 days to schedule. Existing kiosks that provide license plate renewal registration cards and motor vehicle tabs are repaired and updated once every 5 years. Online services experience regular outages.

Cost: $13.5M

The average wait time at the DMV is 21 minutes and appointments take 5 days to schedule. Existing kiosks that provide license plate renewal registration cards and motor vehicle tabs are repaired and updated once every 3 years. Online services are restored when service outages exceed 60 minutes.

Cost: $14M

The average wait time at the DMV is 10 minutes and appointments take 3 days to schedule. Existing kiosks that provide license plate renewal registration cards and motor vehicle tabs are repaired and updated once every year. Online services are restored when service outages exceed 15 minutes.

Cost: $14.6M

The average wait time at the DMV is 6 minutes and appointments are scheduled the next day. Existing kiosks that provide license plate renewal registration cards and motor vehicle tabs are repaired and updated on a regular basis. Online services are restored whenever service outages occur.

Roads

How smooth are our roads?

Rough Moderately Rough Moderately Smooth Smooth

Cost: $103M

Driving feels continually rough. Most roads have major cracks, ruts, and potholes and result in wear and tear on your vehicle. See how this would look

Cost: $205.9M

Driving is often rough. Most roads have cracks or potholes. Wear and tear on your vehicle is minor. See how this would look

Cost: $588.3M

Driving is mostly smooth. Most roads have only minor cracks and ruts but have frequent patches and repairs. See how this would look

Cost: $1059M

Almost all roads have new pavement and are smooth to drive on almost all of the time. Cracks and potholes are quickly filled in on roads throughout the state. See how this would look

Bridges

How good are our bridges?

Adequate Moderately Adequate Moderately in Good Condition In Good Condition

Cost: $75M

Many bridges have serious problems. There might be cracks, rust, or parts that are damaged or worn out. Any open bridge is still safe to use, but many need repairs or additional weight restrictions or closures are likely to occur in the future. All bridges are still monitored to ensure safety. See how this would look

Cost: $85M

Many bridges have some wear and tear, but few have severe issues. Some parts of individual bridges are aging or need repairs. Many bridges need minor work to preserve their useful life and some need significant work. All bridges are still monitored to ensure safety. See how this would look

Cost: $105M

Most bridges are in decent shape with only minor signs of use. Very few bridges need major repairs and even fewer are closed due to physical condition concerns. Some bridges need minor work to preserve their useful life, but all bridges are still monitored to ensure safety. See how this would look

Cost: $115M

Many bridges are like new or recently built and are in top condition with few signs of wear. Most bridges need no or only minor work to preserve their useful life. Bridges closed due to physical condition concerns are non-existent. All bridges are still monitored to ensure safety. See how this would look

Snow

How quickly are roads cleared?

Slowly Moderately Slowly Moderately Quickly Quickly

Cost: $25M

Most state roads take nearly a full day to clear after heavy snowfall.

Cost: $35M

Some state roads take approximately 10 hours to clear after heavy snowfall.

Cost: $50M

Some state roads take approximately five hours to clear after heavy snowfall.

Cost: $70M

State roads take approximately two hours to clear after heavy snowfall.

Safety

How safe is the system?

Safe Moderately More Safe More Safe Safest

Cost: $10M

The system's existing safety assets are maintained in their current condition, but risk falling into disrepair as infrastructure ages. See how this would look

Cost: $30M

Safety improvements are installed at high-risk areas throughout the system. See how this would look

Cost: $50M

Safety improvements are installed on high-traffic roads and intersections, even if crash occurrences are low to zero. See how this would look

Cost: $100M

Most of the system includes safety improvements on roads and sidewalks. See how this would look

Maintenance

How well are our road maintained?

Adequately Somewhat Adequately Moderately Well Very Well

Cost: $10.3M

The system's pavement, road markings, signs, and roadway landscaping are maintained at minimal functionality.

Cost: $19M

Some pavement, road markings, signs, and roadway landscaping are well maintained.

Cost: $39.6M

Most pavement, road markings, signs, and roadway landscaping are well maintained.

Cost: $63.4M

Pavement, road markings, signs, and roadway landscaping are maintained with the latest materials and technologies, such as weather-resistant plants and paint.

Public Transit

How easy is it to use public transit?

Current Conditions Slightly Connected More Connected Highly Connected

Cost: $4M

Transit service remains at current levels.

Cost: $5M

Transit service remains at current levels, but transit amenities, like bus shelters and real-time travel information, become more available.

Cost: $8M

Transit service availability improves by 25%, including more frequent service, more nights and weekend service, and expanded rural service.

Cost: $10M

Transit service availability improves by 100%, including new bus routes, more on-demand services, more intercity travel options, and expanded rural service.

Walk & Bike

How easy it is to walk and bike around North Dakota?

Current Conditions Slightly Connected More Connected Highly Connected

Cost: $3M

Bike lanes and sidewalks are available on less than 10% of roads. Painted crosswalks are available at 25% of high-traffic intersections.

Cost: $6.5M

Bike lanes and sidewalks are available on 25% of roads. Painted crosswalks and walk signals are available at 50% of high-traffic intersections.

Cost: $12M

Bike lanes and sidewalks are available on 60% of roads. Painted crosswalks and walk signals are available at 75% of high-traffic intersections and 25% of low-traffic intersections.

Cost: $20M

Bike lanes and sidewalks are available on 90% of roads. Painted crosswalks and walk signals are available at 100% of high-traffic intersections and 50% of low-traffic intersections.

Freight

How easy is it to move freight?

Less Efficient Moderately Less Efficient Moderately More Efficient More Efficient

Cost: $35M

The freight system is maintained in its current condition, but risks falling into disrepair as infrastructure ages.

Cost: $43.5M

Height/width restrictions for trucks are removed from Level One freight corridors, which support international and interstate freight movements as well as critical rural freight corridors, and critical short line rail lines can carry heavier loads.

Cost: $58.5M

Many state roadways have no height/width restrictions for trucks and some short line rail lines can carry heavier loads.

Cost: $65M

Almost all state roadways have no height/width restrictions for trucks and almost all short line rails can carry heavier loads.

Total Budget

Your Preferences Exceed the Budget by $1.5M

Your Preferences are under Budget by $1.5M

Your preferences would cost you: +$88.20/month

You can go back and change your preferences OR you can increase how much you pay per gallon of gas and for your vehicle’s registration.

How much more $ per gallon of gas would you pay to meet your preferences?

How much more $ in registration would you pay to meet your preferences?

Uh oh...

You’re still short $0.00/month to meet your preferences.

-$0.00

You may still submit your budget even if your selections exceed the total available budget.

Nice!

You’ve funded your transportation preferences!

Your budget has been submitted!

What’s the Future of Funding?

Ride share sales taxes, commercial vehicle fees, and mileage-based fees are not currently in place in North Dakota, but they represent opportunities other states are using to expand transportation revenue, which in turn helps support and maintain essential services statewide.

Ride Share Sales Taxes

These taxes address the impacts of ride-share vehicles on roads and congestion. Applied to trips with services like Uber, Lyft, or taxis, they can be charged per trip or as a percentage of the fare. Costs vary by trip distance, frequency, and timing, with current fees ranging from about $0.20 per trip to a standard sales tax rate.

Commercial Vehicle Fees

Common in many states but not used in North Dakota, these fees apply to vehicles used for business purposes. They’re typically based on a vehicle’s weight or age during registration renewal or issued through special plates or permits. Some states tailor fees to vehicle types such as trucks, trailers, or specialized equipment.

Mileage-Based Fees

These programs charge drivers by miles driven instead of fuel used, tying payments to actual road use. Participants report mileage via odometer readings or GPS and pay on a set schedule. Oregon’s pilot program charges 1.8 cents per mile and rebates state fuel taxes, benefiting less fuel-efficient vehicles.

Activity

Thank you & Next Steps

Thank you for your input and taking time to complete this survey! Your feedback will guide the plan update and shape the long-term strategy for transportation improvements in North Dakota. After the plan is adopted, a new implementation plan will outline how NDDOT will carry out the ideas and priorities shared by the public for the future of transportation in the state.

Visit the project website

Project Schedule

Assess Conditions and Needs - February to June 2025
Imagine Trends and Scenarios - March to July 2025
Public and Partner Engagement - March 2025 to January 2026
Plan Vision, Goals and Performance - July to December 2025
Recommend Implementation, Policy, Performance and Funding - November 2025 to February 2026
Plan Documentation Review and Production - March to May 2026 (Draft Plan prepared in March)

North Dakota’s Transportation Funding & Services

Funding Sources

What This Funding Supports

Services Provided

Your Monthly Costs

See how your monthly transportation costs stack up against typical household expenses.

You currently pay (per month):

Federal fuel taxes

ND fuel taxes

ND registration fees

Transportation Costs vs. Household Expenses

Energy bill

Phone bill

Internet bill

Streaming media bill

Federal/State gas taxes and registration fees

Activity

How does North Dakota compare?

State fuel taxes stay the same even as gas prices rise and fall

How much does transportation cost?

Current Costs to Build & Maintain

Snow and Ice Control

Bridge Replacement

Lighting, Signage and Pavement Markings

Passing Lanes

For Each Mile

Activity

Since 2005, the cost of materials, equipment & services has increased by

Our funding challenges

Submit Your Investment Preferences

In the sliders below, either slide the green dot or click any dot to set your investment levels for each area, then see how your choices compare to current funding.

Your Investments vs. Total Budget

DMV

What’s the Future of Funding?

Ride Share Sales Taxes

Commercial Vehicle Fees

Mileage-Based Fees

Activity

Transportation Survey

Are you on our mailing list?

Tell us about yourself

Demographic Survey Questions (optional)

Thank you & Next Steps

Project Schedule