The Virginia Department of Transportation (VDOT) is set to cancel US$36m in unpaid toll debt accumulated by drivers who used the Midtown and Downtown tunnels in the city of Portsmouth, as part of a targeted effort to address long-standing enforcement and equity issues in the US state’s tolling system.
The move, which was formally announced on 15 July, will result in the forgiveness of more than 350,000 delinquent accounts, primarily from low- and middle-income drivers in the Hampton Roads region.
The debts, which date back to 2014, relate to small unpaid tolls that in many cases ballooned due to repeated administrative and legal penalties.
VDOT said affected drivers will be notified in the coming weeks, with all qualifying debt cancellations expected to be processed before the end of 2025.
The state will cover the full cost of the US$36m debt write-off using funds from its Toll Relief Program, introduced in 2022 under then-governor Ralph Northam to support frequent tunnel users earning less than US$50,000 per year.
To qualify, drivers must reside in eligible ZIP codes and make a minimum of eight trips per month through the Midtown or Downtown tunnels.
VDOT commissioner Stephen Brich said the measure was intended to reset tolling practices in Hampton Roads and rebuild public confidence in tolled infrastructure. “This action clears the slate and allows us to move forward with a smarter, fairer tolling system,” he said in a statement.
The Midtown and Downtown tunnels are operated under a 58-year public-private partnership (PPP) between VDOT and Elizabeth River Crossings (ERC), a private concessionaire owned by Spanish infrastructure group Abertis. The PPP includes tolling, maintenance and operations across both tunnel facilities.
Although ERC remains contractually entitled to pursue unpaid tolls under the PPP, the firm agreed to waive collections in exchange for reimbursement from the state.
VDOT officials said the route offered better value for money than pursuing court action over low-value claims, some of which began with tolls under US$5 but grew to more than US$1,000 due to compounding fees and penalties.
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Tolling on the tunnels has been a flashpoint since its introduction in 2014, with widespread criticism over enforcement practices and limited transparency.
The controversy prompted multiple lawsuits and legislative proposals in Virginia aimed at reforming tolling collection and dispute resolution.
The state’s Toll Relief Program is also being expanded to include increased discounts for eligible drivers, following concerns about affordability and access for essential workers, commuters and underserved communities.
Further reforms to toll enforcement and collection practices in Virginia are expected later this year, as part of a broader push to balance infrastructure funding needs with public fairness and accountability.
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