In case you missed it, last month we covered federal funding for passenger rail. If you were left wondering where state funding comes from, particularly in Ohio, you’re in the right place.

Investments are just part of the path to success for passenger rail. Ohioans understand our position in the heart of the Midwest makes us a key player for connecting not just our state, but the entire nation coast to coast.

The path to raising money for Ohio’s transportation

The revenue resources and allocations for passenger rail in Ohio can get complex, and quickly. Most of Ohio’s transportation funding is designated by the Ohio Department of Transportation’s (ODOT) budget, and that budget comes from taxes. According to ODOT’s December 2024 Citizen’s Guide to Transportation Funding in Ohio, our transportation system is mainly funded by the motor fuel tax.

Here is a breakdown of those taxes:

The state motor fuel tax is just one example of the ways money is raised for all transportation, including:

• State roads and bridges

• Funding distributed for counties, cities, townships, and villages

• State agencies like the State Highway Patrol and Public Utilities Commission

• ODOT debt payments

• Multimodal transportation (passenger rail)

The graphic from the Citizen’s Guide to Transportation Funding in Ohio paints a clear picture of how state and federal funding are combined to create the total revenue. Then, it demonstrates how much funding each recipient group receives.

Making sense of the smallest bucket

As you can see from the image, multimodal transportation received a mere $324M, about 5%, of the total revenue in 2024. (7.4% of Ohio housholds to do not have access to a vehicle) Passenger rail funding comes from this bucket. The Ohio General Revenue Fund (shown in yellow) is a special fund raised through state income, property, and general sales taxes that is designated by the Ohio General Assembly during the annual appropriations process.

Many projects are dependent on multi-year funding commitments, and the Ohio General Revenue Fund is crucial to keep the momentum alive. While “the $53M in fiscal year 2024 was directed to multimodal funding for transit, Ohio Rail Development Commission, and airport improvements,” according to the Citizen’s Guide, that money is distributed differently each year.

When it comes to the State Transportation Budget for fiscal years 2026 and 2027 (House Bill 54), it is important to clear up a common misconception. While earlier versions of the bill proposed joining the Midwest Interstate Passenger Rail Compact to expand regional passenger rail services, that provision was unfortunately removed and did not make it into the final enacted legislation.

However, the final bill does continue to support local transit by extending the Ohio Workforce Mobility Partnership Program. This program is administered by ODOT and is generally designed to expand transit transportation options between rural and urban locations. The Ohio Transportation Budget officially earmarks $13.5 million in each fiscal year to administer this program but does not include any funding specifically earmarked for new passenger rail.

Advocates know this ongoing effort is crucial. We need continued investment and means to push passenger rail projects from paper plans into reality.

Looking ahead in 2026 and beyond

We can talk about the money component all day, but when it comes to keeping the passenger rail momentum alive in Ohio—that’s up to all of us to get involved and make our voices heard.

Attend your local AAO Chapter Meetings, join our monthly Statewide Meetings, post your thoughts on social media, and engage with friends and members of your community to build advocacy and influence from corner to corner in the Buckeye State.

Together, we can reach our goal of a connected Midwest.