Bill Text: IL HB3535 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Motor Fuel Tax Law. Provides that, of the moneys in the Transportation Renewal Fund that are used for highway maintenance, highway construction, bridge repair, congestion relief, and construction of aviation facilities, 40% (instead of 60%) shall be transferred to the State Construction Account Fund and 60% (instead of 40%) shall be distributed by the Department of Transportation to municipalities, counties, and road districts of the State. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-07 - Filed with the Clerk by Rep. Ryan Spain [HB3535 Detail]

Download: Illinois-2025-HB3535-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3535 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED:
35 ILCS 505/8b
Amends the Motor Fuel Tax Law. Provides that, of the moneys in the Transportation Renewal Fund that are used for highway maintenance, highway construction, bridge repair, congestion relief, and construction of aviation facilities, 40% (instead of 60%) shall be transferred to the State Construction Account Fund and 60% (instead of 40%) shall be distributed by the Department of Transportation to municipalities, counties, and road districts of the State. Effective immediately.
LRB104 08055 HLH 18101 b
A BILL FOR
HB3535 LRB104 08055 HLH 18101 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Motor Fuel Tax Law is amended by changing
Section 8b as follows:
(35 ILCS 505/8b)
Sec. 8b. Transportation Renewal Fund; creation;
distribution of proceeds.
(a) The Transportation Renewal Fund is hereby created as a
special fund in the State treasury. Moneys in the Fund shall be
used as provided in this Section:
(1) 80% of the moneys in the Fund shall be used for
highway maintenance, highway construction, bridge repair,
congestion relief, and construction of aviation
facilities; of that 80%:
(A) before Fiscal Year 2026 and for Fiscal Year
2031 and thereafter, the the State Comptroller shall
order transferred and the State Treasurer shall
transfer 60% to the State Construction Account Fund;
those moneys shall be used solely for construction,
reconstruction, improvement, repair, maintenance,
operation, and administration of highways and are
limited to payments made pursuant to design and

HB3535 - 2 - LRB104 08055 HLH 18101 b
construction contracts awarded by the Department of
Transportation; and
(B) before Fiscal Year 2026 and for Fiscal Year
2031 and thereafter, 40% 40% shall be distributed by
the Department of Transportation to municipalities,
counties, and road districts of the State using the
percentages set forth in subdivisions (A), (B), (C),
and (D) of paragraph (2) of subsection (e) of Section
8; distributions to particular municipalities,
counties, and road districts under this subdivision
(B) shall be made according to the allocation
procedures described for municipalities, counties, and
road districts in subsection (e) of Section 8 and
shall be subject to the same requirements and
limitations described in that subsection; and
(C) beginning with Fiscal Year 2026 and continuing
through Fiscal Year 2030, the State Comptroller shall
order transferred and the State Treasurer shall
transfer 40% to the State Construction Account Fund;
those moneys shall be used solely for construction,
reconstruction, improvement, repair, maintenance,
operation, and administration of highways and are
limited to payments made pursuant to design and
construction contracts awarded by the Department of
Transportation; and
(D) beginning with Fiscal Year 2026 and continuing

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through Fiscal Year 2030, 60% shall be distributed by
the Department of Transportation to municipalities,
counties, and road districts of the State using the
percentages set forth in subdivisions (A), (B), (C),
and (D) of paragraph (2) of subsection (e) of Section
8; distributions to particular municipalities,
counties, and road districts under this subdivision
(B) shall be made according to the allocation
procedures described for municipalities, counties, and
road districts in subsection (e) of Section 8 and
shall be subject to the same requirements and
limitations described in that subsection; and
(2) 20% of the moneys in the Fund shall be used for
projects related to rail facilities and mass transit
facilities, as defined in Section 2705-305 of the
Department of Transportation Law of the Civil
Administrative Code of Illinois, including rapid transit,
rail, high-speed rail, bus and other equipment in
connection with the State or a unit of local government,
special district, municipal corporation, or other public
agency authorized to provide and promote public
transportation within the State; of that 20%:
(A) 90% shall be deposited into the Regional
Transportation Authority Capital Improvement Fund, a
special fund created in the State Treasury; moneys in
the Regional Transportation Authority Capital

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Improvement Fund shall be used by the Regional
Transportation Authority for construction,
improvements, and deferred maintenance on mass transit
facilities and acquisition of buses and other
equipment; and
(B) 10% shall be deposited into the Downstate Mass
Transportation Capital Improvement Fund, a special
fund created in the State Treasury; moneys in the
Downstate Mass Transportation Capital Improvement Fund
shall be used by local mass transit districts other
than the Regional Transportation Authority for
construction, improvements, and deferred maintenance
on mass transit facilities and acquisition of buses
and other equipment.
(b) (Blank).
(Source: P.A. 103-866, eff. 8-9-24.)
Section 99. Effective date. This Act takes effect upon
becoming law.