RIGA, January 6, 2026 — Latvia will allocate €314.1 million to road construction and upkeep this year, a figure that’s €40.6 million less than the previous year’s investment. It’s a familiar story: ambitious plans bumping up against budgetary realities, and a persistent need to improve infrastructure across the Baltic nation.
Road Funding Faces a Dip, But Safety Remains a Priority
Despite a decrease in overall funding, Latvia is prioritizing road safety improvements and maintaining connectivity throughout the country.
- Latvia will spend €314.1 million on roads this year, down from €354.7 million in 2025.
- An additional €38 million will come from European Union funds.
- 570 kilometers of roads are slated for construction or renovation.
- Road safety projects will receive €13.2 million in funding.
- Officials acknowledge that road funding remains insufficient to address all needs.
What condition are Latvia’s roads in? This year’s investment is projected to bring 86 percent of national highways and 66 percent of regional roads to at least a satisfactory condition, according to the Transport Ministry.
The funding breakdown includes €142.7 million for national highway construction and renovation, and €79.64 million dedicated to routine maintenance across 20,000 kilometers of roadways. Municipalities will receive €60.1 million in grants for local street and sidewalk projects—the same amount as last year.
A significant portion of the budget, €13.2 million (including €9 million from EU funds), is earmarked for road safety enhancements. These include the construction of grade-separated pedestrian and bicycle crossings on the Tallinn (A1) Highway near Medzabaki, the Liepaja (A9) Highway, and the Jelgava-Tukums (P98) Highway in Apsupe. Further safety measures will be implemented on sections of Liepaja Highway and the Lapenieki-Kekava-Gugi (P137) Highway.
Pedestrian and bike lane construction will also receive €10.56 million in funding, including projects along the Jelgava-Dobele-Annenieki (P97) Highway. Funds from the Recovery and Resilience Facility will support the development of bike lanes within Riga.
Transport Minister Atis Svinka (Progressives) acknowledged the long-standing issue of insufficient road funding, stating that the current state budget priorities will likely maintain the status quo. “At the same time, the ministry’s objective remains unchanged – to ensure mobility of residents throughout the country,” Svinka said, emphasizing a focus on road safety projects this year.
The ongoing challenge is balancing limited resources with the need for comprehensive infrastructure improvements. While the current funding represents a step forward, it also underscores the persistent gap between ambition and reality in Latvia’s road network.
