Louisiana Legislature Approves $1.2 Billion From Savings For Roads, Water, Infrastructure

The Louisiana Legislature has approved a plan to withdraw approximately $1.2 billion from the Revenue Stabilization Trust Fund to finance various one-time projects, including $709 million for road and bridge improvements, $275 million for economic development and site upgrades, and $75 million for local water system enhancements. This fund, which currently holds $3.9 billion, is funded by corporate and severance taxes collected beyond set thresholds and was originally established to support the state during budget crises. Despite the sizable withdrawal, the fund will retain around $2.7 billion, and the state also maintains over $1.1 billion in a separate Budget Stabilization Trust Fund. Additional allocations include nearly $60 million for state government technology upgrades, $43 million for higher education facility needs, and a reduced $43.5 million for the LA GATOR program, a parent choice initiative, down from $93.5 million originally proposed by Gov. Jeff Landry. Legislators emphasized the importance of these investments in infrastructure, education, and economic development to ensure Louisiana's continued growth and stability, noting that the spending is non-recurring and the state is not currently facing a budget crisis. The $1.2 billion withdrawal follows a $717 million drawdown last year, reflecting the legislature's confidence in the state's financial reserves.