FFY26-27 motor fuel tax compliance

The Federal Highway Administration (FHWA) awarded the Alaska Department of Transportation & Public Facilities a Formula Grant of $296,152.92 under the Highway Planning and Construction program (CFDA 20.205) on September 18, 2025, with a completion date of September 30, 2028. This project focuses on motor fuel tax compliance initiatives designed to prevent evasion of motor fuel tax payments. The award funds activities including refund claim audits and enhanced compliance monitoring through data-matching of imported fuel against reports from the Department of Homeland Security Administration.

The work performed under this grant directly supports federal and state transportation funding mechanisms by ensuring proper tax collection and reducing revenue loss through fraudulent claims and non-compliance. By strengthening motor fuel tax enforcement in Alaska, the project contributes to the integrity of federal-aid highway funding streams that rely on these revenue sources for transportation infrastructure investment across the state.

Project description

The scope of this project is to work on initiatives to halt the evasion of payment of motor fuel taxes. This work will include performing refund claim audits and increased compliance work through data-matching of imported fuel with reports from the homeland security administration.