More States Hoping to Monetize Highways

The commercialization of highway rights of way is largely prohibited by federal regulations, but states are looking for new ways to generate revenue from billboards and rest stops.

1 minute read

June 28, 2018, 7:00 AM PDT

By James Brasuell @CasualBrasuell


Digital Highway Sign

Joseph Sohm / Shutterstock

California has 900 digital signs along highways around the state, usually reserved for safety messages, Amber Alerts, or drive times. Now the state is considering selling advertising on 25 of the signs, according to an article by Daniel Vock.

"Not everyone is on board with the idea. In fact, the California Association of Counties, the League of California Cities, half a dozen individual municipalities and several outdoor advertising agencies oppose [pdf] the measure," reports Vock.

The push from the Brown Administration reflects a larger trend among state governments to make more of highway capacity, and its connected land and infrastructure assets, to sell advertising. Just a year ago, the Federal Highway Administration (FHWA) rejected a similar proposal in Texas a year ago, for instance. New York and Michigan have also wrestled with the idea of public entities generating revenue with billboards or signs along highways.

Signs aren't the only resource states are looking to monetize, either. Some commercial uses were grandfathered in before the 1956 law that created the Interstate Highway System prohibited new commercial activity along highways. "So certain roads in Delaware, Maryland, Kansas, Oklahoma, Connecticut, Florida, Maine, Ohio, Pennsylvania, West Virginia, New Jersey, Massachusetts, Illinois, Indiana and New York have gas stations, restaurants and shops within their rights-of-way," explains Vock. Arizona, not on that list, recently asked the federal government for a waiver.

Monday, June 25, 2018 in Governing

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 28, 2026 - Zachary Whalen

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

October 28, 2026 - Grist

Lake Powell with much of the water evaporated.

Desperate measures: Advocates weigh draining Lake Powell to fill Colorado River

Draining the reservoir could reduce evaporation losses by a couple hundred thousand acre-feet.

October 30, 2026 - Yale Environment 360

Mamdani behind a microphone, in front of a snowbank

Mamdani’s pied-à-terre tax survives legal challenge

A panel of judges found that the plaintiffs failed to demonstrate injury as a result of New York City's implementation of the tax.

1 hour ago - CNN

A road in north eastern Nebraska with power lines on either side, and grassy fields.

Eastern Nebraska is running out of electricity

Data centers and electrification are straining eastern Nebraska’s grid, throttling economic development.

2 hours ago - Grist

People board a bus in Seattle.

Seattle passes record-breaking transit services expansion

Proposition 1 will double the city’s transit tax to add 95,000 more bus trips and preserve 180,000 bus trips annually.

3 hours ago - KOMO News