Secretary Donohue Lays Out Ambitious Transportation Perspective Before House Committee
New Secretary emphasizes transparency, fiscal pressures, and a multimodal vision for Virginia's infrastructure future
On Thursday morning, Feb. 19, Secretary of Transportation Nick Donohue made his first formal appearance before the Virginia House Transportation Committee, delivering a sweeping overview of the Commonwealth's transportation landscape and signaling both the challenges and opportunities ahead. For VTCA members — highway contractors, civil engineers, and aggregate producers — the Secretary's remarks carry significant implications for the project pipeline, funding stability, and the regulatory environment in the years ahead.
Transparency, Accountability, and a Robust Project Backlog
Donohue opened with a commitment to transparency and accountability — themes that defined his prior tenure as Virginia's Deputy Secretary of Transportation and his work developing the nationally recognized SMART SCALE prioritization process. He highlighted that VDOT is currently executing approximately 4,000 active projects across the Commonwealth, with several marquee investments nearing completion.
Among the most significant near-term milestones: the Hampton Roads Bridge-Tunnel (HRBT) expansion is on track to deliver a reliable travel choice for the Hampton Roads region by 2027. This project, one of the largest transportation investments in Virginia history.
Highway Funding Under Pressure — A Critical Issue for Contractors
Perhaps the most consequential portion of the Secretary's remarks for VTCA members was his frank assessment of highway funding pressures. Donohue noted that roadway maintenance and operations currently require approximately $2.4 billion annually — outpacing revenue growth. Inflation in construction materials and labor costs is the primary driver and since 2020 has grown by 37%..
VDOT's current Six-Year Improvement Program (SYIP) totals $58.4 billion for FY2026–2031, prioritizing state of good repair for structures and pavement, high-priority projects, district construction grants, interstate operations, and highway safety improvements. See VTCA’s report on the updated SYIP in a previous article. The federal Infrastructure Investment and Jobs Act (IIJA) has provided relief — delivering approximately $500 million in bridge funding — but Donohue was clear that the gap between maintenance costs and available revenues remains a structural challenge.
Rail Expansion and the Long Bridge: New Construction Horizons
Donohue pointed to the Transforming Rail in Virginia initiative — a $6 billion capacity-building program in Northern Virginia — as a generational infrastructure investment. The Long Bridge project over the Potomac River, expected to be complete in 2030, will unlock significantly expanded Amtrak and Virginia Railway Express service. The Secretary noted that while rail expansion is critical, logistical challenges for both passenger and freight rail remain, and the next wave of rail investments must be planned now.
Corridor Investments: I-81, Bi-Directional Projects, and Key Bridges
The Secretary addressed several major statewide corridor conversations. On I-81, Delegate Terry Austion signaled that current funding will be exhausted by 2034 and that a long-term solution must be developed soon — including consideration of rail alternatives to relieve truck traffic. Delegate Austin also highlighted the need for Rt. 220 spot improvements.
Discussions on bi-directional project delivery are ongoing, and conversations with Maryland regarding the American Legion Bridge and the Woodrow Wilson Bridge were described as constructive but far from complete.
Resilience Planning: Climate and Infrastructure Durability
VDOT is developing a formal Resilience Plan to address inland river flooding and sea-level rise — evaluating methodologies for when to raise a bridge, relocate a road, or harden existing infrastructure. Donohue was candid that no significant funding has yet been allocated to this initiative, but the planning groundwork is underway. This emerging area will eventually generate design and construction work, particularly in Coastal Virginia and low-lying inland regions.
NEPA Delegation and Environmental Justice: Regulatory Watch
In a development with potential to meaningfully streamline project delivery, the Secretary highlighted that VDOT has assumed NEPA review authority from the Federal Highway Administration. This delegation is designed to eliminate delays caused by FHWA staffing shortages and accelerate environmental review timelines. For contractors and engineers, faster NEPA clearance means shorter lead times from project development to advertisement.
Separately, Donohue acknowledged that allowing state control of NEPA will include Environmental Justice (EJ) reviews, as federal rules currently do not allow EJ reviews in federal reports. VTCA will continue to monitor how EJ requirements affect project scopes and timelines.
Uban issues focused on Transit improvements, Autonomous Vehicles and Advanced Air Mobility
Several Delegates from urban areas focused on transit improvement needs including additional light rail in Hampton Roads. The Sceretary was straitforward stating localities need to set the direction first. Legislators also asked about the newly established Autonomous Vehicles Work Group, which is examining insurance liability frameworks and the infrastructure needs associated with fleet vehicles operating in automated modes. Delegates also referenced interest in Advanced Air Mobility (air taxi) regulatory frameworks, citing a model involving 10-minute travel times compared to a traditional hour-long trip. The Secretary stated this inititiave is still a long way off, but needs to be within the vision of his Agency. An interesting question was asked about the Secretary’s team which includes a data policy director and former DRPT/federal railroad representation, signaling a multimodal and technology-forward orientation.
VTCA MEMBER TAKEAWAY
Secretary Donohue enters his role with deep institutional knowledge of Virginia transportation finance, a track record of multimodal project delivery, and a clear-eyed view of the fiscal constraints VDOT faces. The combination of a strong near-term project pipeline, rail expansion opportunities, and a streamlined NEPA process offers real opportunity for VTCA members — but the structural pressure on highway maintenance funding and the 2034 I-81 funding cliff demand VTCA's continued legislative engagement. VTCA staff will maintain communication with the Secretary's office and report back to members as priorities and budget proposals develop.