VPRA CFO outlines funding mix, budget outlook and contingency shortfall
January 24, 2026 | 2026 Legislature VA, Virginia
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Laura Farmer, introduced to the committee as VPRA’s chief financial officer, walked senators through the state revenue picture that supports VPRA projects and operations.
Farmer summarized major revenue sources for the Commonwealth Transportation Fund: the statewide motor fuels tax (set in 2021 and adjusted annually for CPI; she cited 21.2¢ per gallon in 2021 and 31.7¢ per gallon today), diesel taxes (20.2¢ in 2021 to 32.7¢ today), the 4.15% tax on vehicle purchases, and a retail sales tax share dedicated to transportation. She said the highway use fee grew from about $42.7 million in its first year to about $83.9 million in 2025.
Farmer described how off‑the‑top allocations and statutory formulas determine the split between the Highway Maintenance and Operating Fund (HMOF) and the Transportation Trust Fund (TTF). She said scheduled crossover (HMOF deficit) transfers total $533,000,000 in fiscal year 2026 and that VDOT supplements maintenance with approximately $284,000,000 in federal funds this year.
On VPRA’s share, Farmer said the rail fund receives 7.5% of the Transportation Trust Fund and VPRA receives roughly 93% of that rail fund share. Based on the approved budget, Farmer said VPRA expects about $180 million over the planning period and that total sources across the planning horizon are "just shy of $8,000,000,000." She said VPRA’s contingency reserve is $112,000,000, which she characterized as "short of the goal"; the board’s policy target is 5% of remaining costs (she estimated the 5% target at about $250,000,000).
Farmer listed secured contributions that support VPRA projects, including a stated Amtrak committed capital contribution of $944,000,000 and federal grants just under $1,000,000,000; she also said passenger ticket revenue financing could provide approximately $210,000,000. Farmer said the Commonwealth Transportation Board has major commitments to finance Long Bridge, with Interstate 66 inside the Beltway toll revenue expected to support debt, though the transcript recorded an unclear dollar figure described in the hearing as "$5.00 $4,000,000" (the exact amount was not specified in the record).
Farmer concluded by saying VPRA reviews forecasts quarterly and balances advancing projects with maintaining a prudent contingency.
The committee did not take votes during this hearing.
Farmer summarized major revenue sources for the Commonwealth Transportation Fund: the statewide motor fuels tax (set in 2021 and adjusted annually for CPI; she cited 21.2¢ per gallon in 2021 and 31.7¢ per gallon today), diesel taxes (20.2¢ in 2021 to 32.7¢ today), the 4.15% tax on vehicle purchases, and a retail sales tax share dedicated to transportation. She said the highway use fee grew from about $42.7 million in its first year to about $83.9 million in 2025.
Farmer described how off‑the‑top allocations and statutory formulas determine the split between the Highway Maintenance and Operating Fund (HMOF) and the Transportation Trust Fund (TTF). She said scheduled crossover (HMOF deficit) transfers total $533,000,000 in fiscal year 2026 and that VDOT supplements maintenance with approximately $284,000,000 in federal funds this year.
On VPRA’s share, Farmer said the rail fund receives 7.5% of the Transportation Trust Fund and VPRA receives roughly 93% of that rail fund share. Based on the approved budget, Farmer said VPRA expects about $180 million over the planning period and that total sources across the planning horizon are "just shy of $8,000,000,000." She said VPRA’s contingency reserve is $112,000,000, which she characterized as "short of the goal"; the board’s policy target is 5% of remaining costs (she estimated the 5% target at about $250,000,000).
Farmer listed secured contributions that support VPRA projects, including a stated Amtrak committed capital contribution of $944,000,000 and federal grants just under $1,000,000,000; she also said passenger ticket revenue financing could provide approximately $210,000,000. Farmer said the Commonwealth Transportation Board has major commitments to finance Long Bridge, with Interstate 66 inside the Beltway toll revenue expected to support debt, though the transcript recorded an unclear dollar figure described in the hearing as "$5.00 $4,000,000" (the exact amount was not specified in the record).
Farmer concluded by saying VPRA reviews forecasts quarterly and balances advancing projects with maintaining a prudent contingency.
The committee did not take votes during this hearing.
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