The Maine Department of Transportation (MDOT) is planning to cut up to $400 million worth of construction and upgrade projects from its agenda amid massive transportation budget problems, according to a new memo obtained by the Bangor Daily News.
[RELATED: Maine Faces $949.2 Million Budget Shortfall for 2026-2027…]
“MaineDOT plans and delivers projects years in advance using the best funding projections available at the time, but the current transportation funding environment includes significant uncertainty at both the federal and state levels,” Transportation Commissioner Dale Doughty said in a statement to The Maine Wire.
“As those risks have intensified in recent months we are making prudent adjustments to responsibly manage taxpayer resources, maintain critical infrastructure, and continue our work to safely deliver projects across Maine. Collaboration and communication with our state, municipal and construction partners to keep them informed about the situation has always been key. That collaboration and communication is ongoing,” he added.
The Bangor paper obtained a memo from Doughty to Gov. Janet Mills (D-Maine) dated May 18, detailing the shocking scope of project cuts.
According to the paper, which did not release the full text of the memo, it states that approximately $50 million worth of paving projects have already been delayed.
The memo also reportedly showed that the MDOT plans to cut or delay $150 million worth of bridge, highway, and intersection projects later in June and an additional $200 million worth of projects scheduled in the next three-year work plan.
The memo reportedly said that the cuts come from a funding gap of at least $130 million between the funds needed to complete the MDOT’s work plan and the funds available to them.
It adds that, in order to maintain the existing system, the department would require an additional $240 million in state capital funding every year.
The MDOT explained to The Maine Wire that “the structural gap in the Highway Fund has been a persistent challenge,” for the department, though steps have been taken to address it.
They explained that Doughty was aware of a $130 million funding gap in the 2026-2028 work plan when it was first developed, but that lawmakers chose not to allocate the funding required.
“The Administration provided sufficient Highway Fund bond language to appropriators during budget negotiations this spring, which lawmakers ultimately did not pursue,” said the MDOT.
The department said that since the 2026-2028 work plan was developed in 2025, issues have intensified, such as rising fuel, asphalt, and construction costs, increased delivery costs associated with federal grants, and policy uncertainty.
“Current actions are intended to responsibly manage risk while minimizing impacts posed by funding challenges,” the MDOT said.
Doughty did not answer The Maine Wire’s question about how the recent cuts will impact Mainers.
The Bangor paper reported that the only near-term solution Doughty proposed to the massive shortfall would be to fund the projects through the issuance of bonds, which would require a two-thirds majority vote in both chambers of the Maine Legislature, which is currently out of session, followed by a majority approval by Maine voters.
The Associated General Contractors of Maine’s executive director, Kelly Flagg, told the paper that the cuts are “deeply troubling,” coming as they do when contractors hire additional seasonal workers for anticipated projects.
“We stand ready to work with policymakers, stakeholders, and industry partners to identify both immediate and long-term solutions,” Flagg told the outlet. “Maine cannot afford to fall further behind.”
Maine’s lawmakers have been aware of an impending shortfall for years. In 2024, Maine’s budget officer revealed an anticipated $312.5 million gap between the Highway Fund and its projected expenditures.
Despite this advanced warning, the issue has not been solved and has now led to concrete issues for the state.
