Gov. Bob McDonnell outlined proposals Thursday that he said would provide $4 billion of funding for transportation in Virginia over the next three years. The plans involve taking $150 million in state surplus and $250 million from money uncovered by a Department of Transportation audit to create a $400 million fund. That money would then be loaned to local governments for transportation projects. Leveraging that money would eventually yield the state $1 billion, Virginia officials said.

Others proposals involve getting the General Assembly to accelerate the sale of transportation bonds authorized in 2007 and modify the state code to allow for what are known as GARVEE bonds, which allow investors to be paid through future federal highway funds.