New Road Funding Rule Opens Up Federal Dollars for Roundabouts

The Traffic Safety Enhancement Act of 2025 is short, sweet, and focused on making a specific change to how states can spend their existing federal road money. Specifically, Section 2 of the bill amends the rules governing the Surface Transportation Block Grant Program (STBGP). This program is a major source of federal aid that states and local governments use for all sorts of road improvements, from paving to bridge repairs.

The New Traffic Circle Loophole

What’s the big change? The bill explicitly adds the construction of roundabouts to the list of approved uses for STBGP funds. Think of the STBGP as a big bucket of cash the federal government gives states for road projects. Before this change, while states could likely use the funds for intersections, this bill makes it crystal clear that building a traffic circle—or roundabout—is a perfectly acceptable use of this money.

This isn't about creating new taxes or new grants; it’s about flexibility. For a busy city planner or a county engineer, this is a green light to use established funding streams for a specific type of intersection design that has become popular for its safety benefits. Roundabouts are often cited as reducing the severity of accidents compared to traditional four-way stops or signalized intersections.

What This Means for Your Commute

If you live in an area where local governments have been pushing for roundabouts but were concerned about how to fund them, this bill simplifies things. For the commuter juggling childcare drop-offs and a tight schedule, this could mean seeing those awkward, high-accident intersections replaced sooner. Instead of waiting for a new, specialized grant program, states can now tap into their regular block grant allocation to start construction.

Consider a small town where a four-way stop is constantly backed up and sees minor fender-benders every month. If the local transportation department decides a roundabout is the best fix, this new rule (Section 2) means they can use their existing federal STBGP funds for the project. This increased flexibility means local governments can respond more quickly to specific safety and congestion issues.

However, it’s important to remember that this just adds an option—it doesn't mandate roundabouts. States still have to decide if this is the best use of their limited block grant money, which also pays for paving, bridge maintenance, and other critical infrastructure. The benefit here is simply giving local decision-makers one more tool in the toolbox, making it easier to fund a traffic solution that many experts agree improves safety and traffic flow.