The Idaho Transportation Department released a draft seven-year plan this week that moves nearly 70 highway projects — totaling roughly $1.3 billion in planned work — into an unfunded category, reflecting the fallout from significant cuts made by the Legislature earlier this year.

Scale of the Shortfall

The draft plan, unveiled Wednesday, proposes shifting 68 highway projects to an “early development” or unfunded status, meaning construction timelines could be pushed back indefinitely. An additional 12 projects tied to the state’s bonding program are not expected to advance, bringing the combined value of deferred or stalled work to nearly $2.8 billion.

Southwest Idaho bears a disproportionate share of the impact. ITD District 3, which covers the region, accounts for 14 of the projects flagged as unfunded, with more than $500 million worth of planned improvements at risk. A separate category of congestion mitigation projects — valued at roughly $1.5 billion — is also not expected to advance through the state’s bonding process.

Legislative Cuts and the Strategic Initiatives Fund

The root of the funding gap lies in decisions made during the 2026 Idaho legislative session. Lawmakers cut $275 million in transportation funding for the upcoming fiscal year — $165 million directed at state highways and $110 million intended for local highway districts.

Compounding the cuts is the projected collapse of the Strategic Initiatives Fund, which accounted for roughly 18 percent of ITD’s revenue as recently as 2025. The fund is expected to sit at zero dollars through 2033, a scenario Governor Brad Little foreshadowed in January. Over the seven-year planning window, the state could lose as much as $1 billion in transportation revenue.

ITD spokesperson John Tomlinson framed the department’s priority as protecting what already exists: “We want to make sure we’re doing all those things that are going to help maintain, operate and preserve the state system that we already have now.”

Growth Pressure on a Constrained System

ITD highway division administrator Amy Schroeder pointed to the state’s rapid population growth as a central driver of pressure on the system. “I probably will sound like a broken record but this unprecedented growth that the state has experienced is putting a tremendous demand on the state highway system,” she said.

Idaho has been among the fastest-growing states in the country for several years, and the projects now sitting on the unfunded list were largely conceived to accommodate that expansion. The financial constraints mean much of that capacity-building work may not happen on any near-term schedule.

Projects already funded and under construction — including portions of the Idaho 16 extension in the Treasure Valley — would not be affected by the plan as proposed.

What Comes Next

The plan released this week is a draft, and ITD is expected to continue the process of gathering input before finalizing the seven-year transportation improvement program. The department has not indicated a specific deadline for public comment, but the planning document sets priorities for how limited funds will be allocated across the state.

The funding shortfall arrives as Idaho continues to grapple with infrastructure demands tied to growth. The Legislature’s cuts, combined with the expected decline of the Strategic Initiatives Fund, leave ITD with fewer tools to address a backlog that will likely grow in the years ahead. Federal disaster aid and recovery efforts — including a major disaster declaration approved for six North Idaho counties following spring storm damage — add further complexity to the state’s overall infrastructure calculus.

How lawmakers respond to ITD’s updated funding picture when the Legislature reconvenes will be a critical factor in determining whether any of the deferred projects can eventually be restored to an active construction schedule.