SB 1862 Arizona Senate · 57th Legislature - Second Regular Session

transportation; 2026-2027.

This bill establishes a new state fund to help Arizona communities secure federal transportation grants by covering up to 50% of application costs and providing matching funds for approved projects. The money is distributed equally among five categories based on population size, ranging from large counties and cities to smaller rural areas and towns, while excluding projects in the state's most populous urban regions. To receive these funds, applicants must first get approval from their local planning organization and then submit a detailed application to the state department for review. The bill also repeals an existing statute regarding highway user revenue fund distribution and creates a new section to govern the allocation of the new fund.

Bill status in committee 1 of 4 stages cleared

Introduction

Jun 2026

Committee Review

Floor Vote

Governor

Introduced Jun 9, 2026 Last action Jun 11, 2026

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What changed between versions

Introduced Version → Senate Engrossed Version · 6 edits

MODERATE

This bill updates the State Match Advantage for Rural Transportation Fund by clarifying how money is allocated between rural and urban areas, adding specific criteria for awarding grants based on applicant partnerships and matching funds, and establishing a new mechanism to redistribute unspent funds. It also creates a new section to automatically transfer $2.5 million annually from the highway user revenue fund to this program.

Scope change

The bill clarifies that the fund's administrative monies (20% allocation) cannot be used for projects in urbanized areas of counties with over one million people, while other categories have specific population thresholds for eligibility.

FISCAL

Added a new provision requiring the department to allocate and transfer $2,500,000 annually from the Arizona highway user revenue fund to the State Match Advantage for Rural Transportation Fund.

ELIGIBILITY

Refined eligibility rules to explicitly state that administrative monies cannot be used for projects located in urbanized areas of counties with a population exceeding one million persons.

REQUIREMENT

Added new criteria for the board to consider when awarding grants, including the percentage of matching monies provided by the applicant and the extent of partnerships with other entities.

ENFORCEMENT

Added a requirement for the board to rescind awards if an applicant receives equal or greater funding from another source for the same project, mandating repayment of expended monies within one year.

TIMELINE

Added a provision allowing the board to redistribute unawarded monies twice a year (January 1 and July 1) to ensure each funding category receives its prescribed share.

DEFINITION

Added formal definitions for 'Federal grant' and 'Urbanized area' to clarify the scope of the program.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 11, 2026

Upper · Passed

upper

Jun 10, 2026

Upper · Passed

upper

1 primary · 0 co-sponsors