In early February, Governor Gretchen Whitmer (D) (above) proposed a long-term $3 billion road investment plan, with $1 billion of that proposal focused on rural and local roadways as well as transit and safety improvements.
[Above photo via the Michigan Governor’s Office]
In her Road Ahead Address, the governor said she will “work with anyone to find a solution to road funding,” calling on the Michigan legislature to “set aside their differences, embrace compromise,” and negotiate a bipartisan roads deal in 2025. Specifically, she highlighted the importance of finding new and fair sources of revenue as well as exploring fiscally responsible cuts, ensuring Michigan can keep repairing and rebuilding its roads.
“My brand-new plan provides a long-term, sustainable solution to fix our roads so we can help more Michiganders stay safe on the road, save money, and get where they’re going faster,” Gov. Whitmer noted in a statement. “My plan is fiscally responsible and balanced, with both new revenue and cuts so we can lower costs for families.”
[Editor’s note: The Michigan Department of Transportation recently released a video highlighting the $3 billion invested to improve safety, mobility, and technology of roadways statewide in 2024.]
“I’m very pleased that the governor has put forward a comprehensive solution to funding Michigan’s roads,” added Bradley Wieferich, Michigan DOT director. “The governor’s Rebuilding Michigan plan has made record-setting progress shoring up our state’s busiest roads and bridges, and this plan will allow Michigan DOT and local agencies to sustain that momentum.”
Key elements of the governor’s plan include:
- Ensuring all federal and state fuel taxes plus a 6 percent state sales tax on every gallon of fuel goes towards Michigan infrastructure. This will put a total of $1.2 billion towards roads, bridges, and transit across the state, she said.
- Updating state tax laws to account for “Big Tech” industries such as Amazon that profit tremendously from using Michigan’s infrastructure; raising $1.7 billion in additional revenue to fix the roads.
- Making “fiscally responsible cuts” and re-routing that money – estimated to be $500 million – into road and bridge repairs.
- Close a loophole that exempted the marijuana industry from wholesale tax, which is applied to similar smoking products, such as cigarettes and other tobacco items. The cannabis industry, which recorded billions in sales in 2024, uses Michigan roads to transport marijuana multiple times throughout the process, including to grow operations, testing labs, distribution hubs, and finally retail stores. This will add an additional $470 million to help fix roads across the state, the governor’s office estimated.
- Investing an additional $250 million in every local bus service and building new transit projects statewide.
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