Statewide fuel use tax evasion - FY26

The Federal Highway Administration (FHWA) awarded $493,880.00 to the Arizona Department of Transportation (ADOT) on August 14, 2025, under the Highway Planning and Construction program (CFDA 20.205) to assess and recover revenue from fuel tax evasion across Arizona. This formula grant supports ADOT's Intermodal Transportation Division in conducting a statewide initiative to identify, investigate, and recover lost fuel tax revenue resulting from evasion activities, thereby protecting transportation funding streams that support highway construction, preservation, and improvement projects throughout the state.

The award contributes to ADOT's broader federal transportation funding portfolio, which encompasses highway infrastructure projects, multimodal transportation network development, bridge rehabilitation, safety improvements, and pedestrian and bicycle facilities. By recovering diverted fuel tax revenue through this fiscal year 2026 effort, ADOT enhances its capacity to sustain critical transportation infrastructure investments and ensures compliance with fuel tax obligations that fund the Federal-aid Highway Program in accordance with the Infrastructure Investment and Jobs Act authorization.

Project description

Assess and recover revenue from fuel tax evasion