Transportation Trust Fund 

The Transportation Trust Fund (TTF) was created in 1971 to establish a dedicated fund to support the Maryland Department of Transportation (MDOT). The use of a dedicated and integrated trust fund approach allows Maryland tremendous flexibility to meet varying transportation service and infrastructure needs and supports a balanced, statewide multimodal transportation system. The TTF supports MDOT investments in our ever growing and changing transportation system by utilizing a diverse stream of revenue sources, which provide funds that enable MDOT to address important capital and operating priorities. The continuing commitment to these priorities has provided Maryland with the high-quality infrastructure system necessary to advance the State’s goals and provide a safe, dependable transportation system that connects Marylanders to economic opportunities across the State.

All activities of the Department are supported by the TTF, including debt service, operations (maintenance and administration), and capital projects. From the funds available for capital programs, certain funds must be paid to the Washington Metropolitan Area Transit Authority (WMATA) to fund ongoing capital system preservation needs. Funds also must be distributed as Highway User Revenue (HUR) capital grants to local jurisdictions. Deductions from revenue are made for certain General Fund purposes, including environmental programs, administrative costs of the motor fuel tax collection, and Maryland State Police programs. Unexpended funds remaining in the TTF at the close of the fiscal year are carried over to the next fiscal year and are not reverted to the State's General Fund.

All funds dedicated to the Department are deposited into the TTF, which serves as the single source for all program and project disbursements. Revenues are generally not earmarked for specific programs. The allocation of funds to capital projects and programs is made in conjunction with state and local leadership and is outlined in the Consolidated Transportation Program (CTP). The CTP is Maryland’s six-year capital budget for transportation projects and programs.

Sources of funds include motor fuel taxes, vehicle excise (titling) taxes, motor vehicle fees (registrations, licenses and other fees), and federal aid. In addition, the TTF also includes a portion of the State’s tax on corporate income, a portion of the State’s sales and use taxes on short-term vehicle rentals and electric vehicle charging, operating revenues (e.g., transit fares, port fees, airport fees), and bond proceeds. Additional revenues were added during the 2024 and 2025 Maryland Legislative Sessions, including an increase in vehicle registration fees, a .5% increase in the vehicle excise tax, and a 3.5% vehicle excise tax on the sale of rental vehicles. Other new revenues to the Transportation Trust Fund from recent legislative sessions include a portion of the State’s capital gains tax, electric vehicle surcharges, transportation network company (TNC) fees, and new tire fees. Federal-aid projections are based on current appropriations and the match required to meet capital program cashflow needs. Bonds are issued to support the cashflows of projects in the capital program while maintaining debt coverage requirements.

The Transportation Trust Fund permits the State tremendous flexibility to meet the needs of a diverse multimodal transportation system. Maryland was one of the first states to have an integrated trust fund and it is a model that has been adopted by other states. By collaborating with rating agencies and upholding strict financial standards for the TTF, the Department maintains one of the highest credit ratings afforded to transportation agencies.

Updated March 2026