Mary Scott Nabers sits before a imposed background for her weekly column

A quick look at new state funding allocations for 2025 and 2026 

June 6, 2025

The Strategic Partnerships Team has extremely good researchers, and it is always interesting to see what they can produce when I ask them to brief me on something. This week I wanted to know if there were commonalities in funding allocations resulting from state legislative sessions that had just ended. We are always looking for trends, news that has not yet been publicized, and new allocated funding for specific types of projects. 

So, the information relayed in this column is from data our researchers identified, analyzed, and compared. I asked them to outline the most common large funding allocations made recently through legislative actions throughout the country. Not surprisingly, it seems that the new funding falls into the categories of education, water, transportation infrastructure and construction. The nationwide investments in these sectors point to long-term planning and various types of resilience-focused initiatives. 

Transportation Infrastructure: 

Many of the states will make significant investments in transportation projects with the objectives of enhancing mobility, safety, and economic growth. The following summary of recent funding allocations and initiatives by select states is interesting and more project details are available in planning documents with the public entities. 

California 

California has allocated $5.1 billion for transportation projects in FY25-26, and the funding will flow to state highway agencies and public transit authorities. Funding was also made available for homeless encampments along state highways. One large transportation project, the Capital South East Connector, a 34-mile expressway, will be launched in the Sacramento metropolitan area. 

Texas 

Texas’s transportation budget stands at $40.4 billion, marking a significant increase over previous years. The Texas Department of Transportation (TxDOT) will use the funds for highway project development and roadway construction, and maintenance. The funding will be used to address the state’s growing transportation needs. TxDOT has outlined over 7,000 projects valued at more than $64 billion that will launch over the next 4 years. 

Florida 

Florida’s Department of Transportation has outlined a $13.98 billion work program and funding was made available for statewide transportation projects related to road construction, maintenance, and public transit improvements. 

Illinois 

Illinois has a $41.42 billion multi-year 5-year transportation program that will launch projects designed to revitalize and modernize the transportation system across all counties. The program will invest $29.65 billion in state roads and bridges, with $5.3 billion identified for the current year. A total of $11.77 billion is programmed for other modes of transportation – $7.5 billion for transit, $2.54 billion for freight and passenger rail, $1.57 billion for aviation, and $160 million for ports and waterways. 

Ohio 

Ohio’s Connect4Ohio Fund received a $500 million allocation to support rural highway projects and other efforts to improve transportation infrastructure in less populated areas. Additional funding includes $15.2 million annually for roadwork development grants and $124.6 million for the Local Transportation Improvement Program

Georgia 

Georgia will invest $1.5 billion in transportation projects that encompass road and bridge projects, capital construction and maintenance, airport projects, and a new freight program. The funding was made available to enhance statewide transportation networks and support economic growth. 

North Carolina 

North Carolina legislators infused approximately $300 million into the Department of Transportation through the Highway Trust Fund and Build NC bonds. The funds will boost other funding for road construction and roadway maintenance projects. Statewide officials want to improve the state’s transportation systems. 

Michigan 

Michigan’s legislators passed a bill that provides $265.99 million for local road improvement projects, transit innovation grants, and mobility initiatives. This new funding will boost other programs that support transportation infrastructure. 

Educational Facilities:
In the latest legislative actions, several states have approved substantial funding toward educational initiatives and most upcoming projects will focus on facility repairs and upgrades as well as some educational program enhancements. 

California 

For the 2025–26 fiscal year, California has allocated $118.9 billion to support approximately 1,000 public school districts, 1,300 charter schools, and community colleges. Of the total amount approximately $2 billion is allocated for the School Facility Program to fund projects that upgrade educational facilities. This money will be used to repair older buildings, build new schools, deliver energy efficiency and increase safety. 

Texas 

The 86th Texas Legislative Session resulted in the passage of a bill to invest $8.5 billion in public school districts. While the bill primarily increases teacher salaries and provides funding for special education services, significant revenue is also allocated for school safety enhancements. The legislature designated $1.3 billion for operational expenses such as transportation, utilities, and insurance. The objective was to support fixed costs for schools so that the districts can redirect existing funds for facility improvements. 

New York 

New York State launched a Clean Green Schools Initiative that will allocate $100 million under the $4.2 billion Clean Water, Clean Air, and Green Jobs Environmental Bond Act. The objective of all projects will be to reduce greenhouse gas emissions and improve environmental sustainability in public schools. 

Illinois 

Illinois legislators passed a bill to invest $44.8 million to construct a transportation, distribution, and logistics center at Olive-Harvey College in Chicago. The project, funded through a combination of state funds and contributions from City Colleges of Chicago, will result in construction of a new facility to attract students interested in careers in transportation and logistics. 

Ohio 

Ohio’s legislators allocated $600 million to the state’s capital budget but it is dedicated to the construction and renovation of K-12 schools. Projects will be overseen by the Ohio Facilities Construction Commission. 

Georgia 

Georgia’s legislature ended with new appropriations for various state operations -$1.5 billion, including education. Specific project allocations are not available yet, but the funding is earmarked for educational buildings at the university level. 

North Carolina 

North Carolina legislators authorized $471.6 million for capital improvement projects at the state’s higher education institutions. The funding supports infrastructure expansions and renovations, including projects such as the Holmes Convocation Center Parking Deck at Appalachian State University and a new residence hall at Elizabeth City State University. 

Water Infrastructure: 

Texas 

In 2025, Texas lawmakers approved a bill that allocates $1 billion annually for water infrastructure projects for a total of $20 billion distributed. The funding will be used for various types of water projects including revamping aging systems, constructing new desalination plants, and expanding water infrastructure across the state. Additionally, a one-time $1.6 billion allocation was approved for the Texas Water Development Board which will also allocate funds for water projects. 

North Carolina 

In February 2025, North Carolina announced $265 million in funding for 99 drinking water and wastewater infrastructure projects across 45 counties. The resulting projects will address issues like PFAS contamination and lead pipe replacement. 

New York 

New York’s legislators approved a FY26 budget that includes $500 million for clean water infrastructure. The funding will support various types of projects including upgrading wastewater and drinking water systems, protecting source water, and remediating emerging contaminants. This investment is part of a larger $6 billion commitment to clean water infrastructure in New York. 

Large Construction Projects: The funding for construction in the targeted states primarily supports building construction projects for education, healthcare, and public research infrastructure. 

California 

A $219.5 million construction project was announced to replace an outdated instructional facility. The new building will be designed as a cutting-edge training center for students pursuing careers in advanced transportation and manufacturing industries. It will support workforce development in high-demand sectors. 

Texas 

Texas legislators committed to significant funding support – $345.2 million – for an initiative focused on cybersecurity the Texas Cyber Command Center at the University of Texas at San Antonio. The center will house a Cyber Threat Intelligence unit, a digital forensics lab, and an incident response center. Designed to enhance the state’s cyber resilience, this project reflects growing demand for digital infrastructure and public safety. 

New York 

New York’s legislative session ended with passage of a $1.7 billion investment in the Wadsworth Public Health Laboratory in Albany. This initiative will centralize several outdated public health labs into a modern facility that improves research efficiency, response to public health threats, and laboratory safety. The new complex will be one of the most advanced public health labs in the country. 

Pennsylvania 

Pennsylvania legislators allocated $30 million to the Philadelphia Navy Yard Greenway District, a development project that will prepare 54 acres of the historic Navy Yard for future commercial and advanced manufacturing facilities. The redevelopment will deliver a facility designed to attract life sciences and biotech firms while establishing an innovation-focused commercial corridor. 

Illinois 

Illinois officials will oversee a $900 million project to replace both the Stateville and Logan Correctional Centers. The new facilities will incorporate rehabilitative design features, including therapeutic spaces and modern living units. State officials describe the effort as part of a broader reform strategy focused on humane incarceration and reducing recidivism. 

Ohio 

Ohio legislators approved investing $275 million in a center of music innovation and education facility in Columbus. A new 200,000-square-foot facility will be constructed to support music education, performance, and interdisciplinary arts research. 

Georgia 

In Georgia, funding was approved for a $99.8 million expansion to Augusta University’s health sciences campus. A new research building will be constructed to house advanced labs and collaborative spaces for biomedical and health sciences research. It will expand scientific discovery and medical innovation in the state. 

These examples of funding provide a futuristic look at what state leaders were willing to allocate at a time when almost every state is seeking ways to reduce costs and make government services more efficient. General details for all projects are available now, but more information about each will be available when the planning and design stages are operational. 

Mary Scott Nabers

Mary is President/CEO of Strategic Partnerships, Inc. (SPI), a business development/public affairs firm that specializes in procurement consulting, market research, government affairs, knowledge transfer and public-private partnerships (P3s). Mary is also co-founder of the Gemini Global Group (G3), a firm that works with national and international clients on business development, P3s, and other types of government objectives.

A recognized expert regarding P3s, Mary is the author of Collaboration Nation – How Public-Private Ventures Are Revolutionizing the Business of Government and Inside the Infrastructure Revolution – A Roadmap for Rebuilding America.

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