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Ivey announces $7M in road projects funded by new gas tax money

Governor Kay Ivey and the Alabama Department of Transportation announced 31 road and bridge projects on Thursday that would be receiving grants from the state.

Together, the 31 grants are worth $7 million. The money for the projects comes from the Annual Grant Program, a new pool of funds established under the Rebuild Alabama Act that is intended for local projects municipalities/counties cannot pay for on their own. The Annual Grant Program is a small portion of the overall revenue generated by Rebuild Alabama.

The Rebuild Alabama Act is the name of the bill championed by Ivey that the Alabama legislature overwhelmingly passed in the spring of 2019. The act raises the gas tax in Alabama by ten cents over three years in order to pay for infrastructure projects like roads and bridges. A six-cent increase to the gas tax happened in September 2019, with a two-cent increase to follow in 2020 and 2021.

“An investment in our roads and bridges is an investment in the future of Alabama. These $7 million in funds will go a long way in helping communities across the state address various road and bridge projects,” Ivey said.

The Annual Grant Program is composed of $10 million each year. The remaining $3 million will be awarded later in 2020. According to the governor’s office, “all projects will be under contract by the end of the calendar year, after bids are taken.”

“I am proud to see the continuing positive ramifications from the Rebuild Alabama Act. Soon, every Alabama citizen will feel the benefits from this additional investment in our infrastructure,” Ivey concluded.

For the approved projects, click here.

Henry Thornton is a staff writer for Yellowhammer News. You can contact him by email: henry@new-yhn.local or on Twitter @HenryThornton95.