Where Does Your State Rank for Highway Cost-Effectiveness in 2025?

New rankings reveal major shifts in cost-effectiveness, safety and road conditions nationwide
March 23, 2026
3 min read

Key Takeaways

  • Virginia ranks No. 1 overall, while Alaska remains last for the second consecutive year.
  • Massachusetts posted the biggest improvement, jumping 23 spots in the rankings.
  • Fatality rates, pavement conditions and spending efficiency continue to vary widely across states.

The Reason Foundation has released its 29th Annual Highway Report, ranking state highway systems based on cost-effectiveness and overall performance.

The report evaluates states across 13 categories, including highway spending per mile, pavement conditions, congestion, bridge quality and fatality rates. Rankings are based on how well states balance system performance with the resources available.

According to the report, the most cost-effective systems combine lower per-mile spending with smooth pavement, structurally sound bridges, minimal congestion and low fatality rates.

Top States See Gains in Safety and Efficiency

Virginia, Georgia, South Carolina, North Carolina and Ohio ranked as the top five states overall for highway performance and cost-effectiveness.  

Virginia climbed from fourth to first place, driven largely by improvements in both urban and rural fatality rates. The state also performed well across several infrastructure categories, including pavement conditions and bridge quality.

However, congestion remains a challenge. Virginia ranked 38th in traffic congestion, with drivers spending roughly 33 hours annually in traffic.

Massachusetts recorded the biggest improvement nationwide, jumping from 40th to 17th. The gains were driven by maintenance spending, improved rural pavement conditions and a lower rural fatality rate.

Lowest Ranked States Struggle with Costs and Conditions

At the bottom of the rankings, Alaska, California, Washington, New York and Louisiana were identified as having the least cost-effective highway systems.

Alaska ranked last for the second consecutive year, reporting the highest rural fatality rate in the country along with poor pavement conditions and weak maintenance performance.  

California ranked 49th and reported the worst urban arterial pavement conditions, while Washington — 48th overall — had some of the highest spending levels across multiple categories.

Other notable declines included Arizona, whcih dropped 12 spots to 41st, and Idaho, which fell 11 spots to 26th.

Nationwide Trends Highlight Ongoing Challenges

The report points to several persistent issues across U.S. highway systems:

  • Half of all states report urban fatality rates at or above 1 per 100 million vehicle-miles, with New Mexico, Wyoming, Mississippi, Tennessee and Florida reporting the highest rates.
  • Nearly 7% of highway bridges — about 42,000 structures — are classified as structurally deficient.
  • Congestion remains a major issue in states like New Jersey, Massachusetts and New York, where drivers lose more than 60 hours annually in traffic.

Pavement conditions showed modest improvement overall, though states like Hawaii and Louisiana continue to report high levels of poor roadway conditions.

A small group of states — including California, Nebraska, Rhode Island and New York — account for a disproportionate share of urban arterial roads in poor condition.  

Alaska, California, Colorado and Arizona together account for 44% of rural interstate mileage in poor condition, despite representing just 12.5% of the nation’s total rural interstate system.

These findings underscore ongoing challenges in maintaining infrastructure quality while balancing budgets and increasing traffic demands.

Source: Reason Foundation's 29th Annual Highway Report

About the Author

Jessica Parks, Staff Writer

Jessica Parks, Staff Writer

Staff Writer

Jessica Parks is a staff writer at Roads & Bridges with newsroom experience in Brooklyn, Long Island and the U.S. Virgin Islands, and several years spent living in Puerto Rico. She is currently based in Massachusetts.

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