Politics

Texas Senate Bill 289 Road Funding Formula and Amarillo Highway Maintenance

The revised allocation directs state transportation dollars to projects on U.S. 60 and Interstate 40 within Potter and Randall counties beginning in fiscal year 2027.

By Amarillo Policy Desk · Published July 8, 2026

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Texas Senate Bill 289 alters the state highway funding formula that distributes gasoline tax revenue and federal aid to local districts. The change applies to Amarillo residents who rely on state-maintained routes for daily travel and freight movement.

The legislation passed during the 2025 regular session after the Texas Department of Transportation submitted updated traffic counts showing growth along the I-40 corridor through Amarillo. Lawmakers adjusted the formula to weigh vehicle miles traveled more heavily than population alone.

Effects on Amarillo commutes and local budgets

Under the new formula, Amarillo receives a larger share of maintenance funds for segments of U.S. 60 between the city limits and the Deaf Smith county line. City engineers have listed pavement rehabilitation on that stretch as a priority for the next two years. Residents who drive the route to work or to haul grain and cattle will encounter fewer temporary lane closures once resurfacing begins.

Local property owners will not see an immediate change in city taxes, because the bill routes dollars through TxDOT rather than through the Amarillo Independent School District or the city general fund. However, the Amarillo Metropolitan Planning Organization has noted that improved state roads can reduce the need for local bond issues that would otherwise cover similar work.

Implementation timeline

TxDOT district offices in Amarillo must submit project lists by October 2026 that align with the updated scoring criteria. The first contracts funded under Senate Bill 289 are scheduled for letting in spring 2027. City staff will continue to monitor the quarterly reports posted on the Texas comptroller website to track actual dollars received.

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