Testimonials
Wyoming's transportation system is a tremendous asset. The system was built by our parents and grandparents who believed investing in transportation was important for future generations. Today, we are charged with determining how we will invest to ensure that it continues to be an asset for generations to come.
Testimonials from Industry Leaders
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“We rely on the strong road and highway system to move our workforce across the state, allowing Wyoming products to get to market.”
Union Pacific Railroad
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“Multi-modal transloaded shipments depend on highway and rail systems built to the highest standards.”
BNSF Railway
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“WYDOT is a true partner in the enterprise of running livestock in Wyoming with highways all over the state.”
Jim Magagna, Wyoming Stock Growers Association
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“The highway system is our number two asset in Wyoming — only behind the people of Wyoming. I believe it is absolutely vital to the economy.”
Dan Benford, Associated General Contractors of Wyoming
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“Ensuring our highways remain safe, reliable, and well-maintained is essential for both our communities and our economy. The Wyoming Trucking Association recognizes the importance of investing in this critical infrastructure. If you're enjoying any type of physical product, there's a good chance it arrived by truck—and that truck relied on Wyoming's roads and bridges.”
Wyoming Trucking Association
How is WYDOT Funded Today?
In 2025, the Wyoming Department of Transportation (WYDOT) is estimated to receive $818.2 million in funding from three revenue categories:
- Fuel Tax
- Annual State Fees
- Other State Revenues
Learn More about Fuel Taxes
Fuel Taxes
When you purchase a gallon of gas or diesel, you pay both federal and state fuel taxes.
- Federal: per gallon tax of 18.4 cents for gas and 24.4 cents for diesel. These rates have not changed since 1993. Federal fuel tax revenue from around the country is deposited into the Federal Highway Trust Fund and then distributed back to each State based on an approved allocation formula. In 2025, Wyoming was projected to be allocated $363 million in funding from the Federal Highway Trust Fund. Historically, Wyoming has received $1.77 for every $1.00 Wyoming drivers have paid into the Federal Highway Trust Fund.*
- State: per gallon tax of 24 cents for gas and 24 cents for diesel. These rates have not changed since 2014. State fuel tax is allocated between WYDOT, counties, and cities. WYDOT's share in 2025 is $116 million.
Learn More about Annual State Fees
Annual State Fees
Includes registration fees, vehicle fees and driver's license fees. The most recent increase in these fees was in 2017. In total, they are projected to generate $106.9 million in 2025.
Learn More about Other State Revenues
Other State Revenues
A portion of annual severance tax revenue and federal mineral royalties are allocated to WYDOT.
- WYDOT's share of annual Severance Tax revenue is capped at $6.71 million annually.
- WYDOT's share of annual Royalties is capped at $64.6 million.
WYDOT also annually receives other revenues from a combination of carryover funds from prior years, interest revenue, advertising revenue, equipment sales, construction plan map sales, funding from local cities and counties on specific projects, right-of-way fees, and miscellaneous revenue from a variety of sources.
Learn More about Severance Tax
Learn More about Mineral Royalty
What is Severance Tax and Mineral Royalty?
When private companies extract resources in Wyoming, they pay severance taxes and mineral royalties to the State of Wyoming. WYDOT receives a small portion of each type of revenue, and the remainder is distributed between other state agencies, budget reserves, special projects and accounts, and local governments.
- Annual Severance Tax: WYDOT receives less than 1% of what is collected by the State.
- Annual Mineral Royalties: WYDOT received less than 35% of what is collected by the State.
What WYDOT receives from annual severance taxes and mineral royalties makes up about 9% of WYDOT's overall budget.
- Maintenance and Operations: $125.9 million (15.4%)
- Planning and Administration: $35.4 million (4.3%)
- Capital Expenditures: $27.2 million (3.3%)
- WyoLink: $6 million (0.7%)
- Law Enforcement: $53.7 million (6.6%)
- Highway Improvement Program: $469.4 million (57.4%)
- Operating Transfers Out: $11.7 million (1.4%)
- Other Expenditures: $32.8 million (4%)
- Support Services/Regulatory: $16.7 million (2%)
- Aeronautics: $37.3 million (4.6%)
- Administration: $2.2 million (0.3%)
WYDOT's funding will be changing next year based on the passage of House Bill 33 in March 2025. This bill transfers the existing sales and use taxes on motor vehicles and trailers to the highway fund starting October 1, 2026. While this increase in transportation funding is great news, it does not solve WYDOT's long-term funding challenges.
Costs of Living in Wyoming
Disclaimer: Average monthly household costs, as reported by Forbes, may vary by household.
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How Does Wyoming Compare?
Wyoming has not increased fuel tax rates since 2014. Compared to neighboring states, Wyoming's gas and diesel taxes are relatively similar, but Wyoming actually has the highest per capita miles travelled in the country. When newer, more fuel efficient cars hit the roads, less fuel is purchased, which leads to little or no growth in fuel tax revenue. As a result, WYDOT is tasked with funding major capital projects and delivering the same level of services with revenues that lag behind increasing construction costs.
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- Federal gas tax is 18.4 cents and diesel tax is 24.4 cents
- Idaho gas tax is 33 cents and diesel tax is 31 cents
- Montana gas tax is 33 cents and diesel tax is 29.75 cents
- South Dakota gas and diesel tax is 30 cents
- Nebraska gas tax is 29.6 cents and diesel tax is 29.1 cents
- Colorado gas tax is 26 cents and diesel tax is 28.5 cents
- Utah gas and diesel tax is 36.5 cents
- Wyoming gas and diesel tax is 24 cents
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Funding Challenges
Wyoming's state transportation revenues are heavily dependent on fuel taxes, vehicle registration fees, mineral royalties, and severance taxes. The annual revenue generated by these sources has remained flat over the last 10 years and is not able to keep up with rising construction and maintenance costs.
- Fuel Tax Revenue: Even with the highest per capita vehicle miles travelled per year in the country, improved fuel efficiency results in a reduction in the consumption of fuels and little or no growth in annual fuel tax revenue.
- Vehicle Registration: The number of vehicles registered in the state has decreased over time.
- Mineral Royalties: WYDOT's share of annual mineral royalties is capped at $64.6 million per year. Annual total collections vary from year to year.
- Severance Tax: WYDOT's share of annual severance tax revenue is capped at $6.7 million per year. Annual total collections vary from year to year, exceeding $750 million.
- New Revenue due to House Bill (HB) 33: It is estimated that HB 33 will provide about $70 million in additional transportation revenue, beginning October 1, 2026, due to the transfer of sales and use tax on vehicles and trailers to the highway fund.
- Construction Costs: Over the last decade, WYDOT's construction costs have increased by 42%. To improve roadway conditions and reverse eight years of wear, WYDOT would need to invest over $2 billion over the next 10 years. This equates to an annual funding gap of approximately $200 million per year.
Investment Preferences
With pavement in particular, the Pavement Quality Rating shows how different levels of distress yield different levels of pavement quality ratings. These ratings are based off signs of wear and tear, such as cracks in the pavement, weathering, patching, lane shoulder drop-offs, potholes, bumps and sags, and more.
This serves as an example when we think about the quality of our transportation system in its different states.
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Choose the level of investment that meets your expectations for each transportation topic.
Disclaimer: This is an approximate representation of WYDOT funds by category.
Disclaimer: Fuel tax increase represents an average across fuel types; registration fee increase represents an average across vehicle types.
Funding Preferences
You've learned more about how transportation is funded and what challenges we face in meeting our current and future needs. You've chosen your investment preferences and have seen the gap in funding that WYDOT is experiencing. Please provide your feedback on addressing the funding gap below.
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Thank you for sharing your preferences!
Thank You & Next Steps
Thank you for taking the time to participate in this online meeting. Your input as a customer, partner, or stakeholder is valuable as we continue to develop the 2050 LRTP.
Project Schedule
- Phase 1: System Inventory, Conditions, and Needs
- Public Meeting #1
- Phase 2: Vision, Goals, and Objectives
- Public Meeting #2
- Phase 3: Scenario Development and Revenue Forecast
- Public Meeting #3
- Phase 4: Plan Documentation
Winter 2024/2025
Summer 2025
Fall 2025
Comments
If you would like to be kept up to date on future input opportunities, please leave your contact information below.
