Governor Gretchen Whitmer promised to “fix the damn roads” with a new Michigan road funding plan. The plan, which took form as part of this year's state budget deal, includes about $2 billion a year for roadwork in Michigan.
In a press release, Whitmer said the funding will go towards fixing and building the roads in order to keep Michiganders safe and make driving and commutes faster and more efficient. She added that the new road plan will also support construction jobs and help grow the economy.
Eric Paul Dennis, a research associate focusing on infrastructure policy at the Citizens Research Council of Michigan, said that revenue for the state's new road funding plan will come from several sources.
A fuel tax is being added to the Michigan Transportation Fund. A marijuana tax as well as a percentage of corporate income tax will be added to a new Neighborhood Road Fund, which will prioritize local agencies.
Dennis said road conditions should improve as a result of the plan. He added that local agencies across the state should get a substantial funding increase from state revenue-sharing as a result of the new road plan.
“It will be up to the individual road agencies to decide how they want to spend that,” he added.
Dennis said Michigan's road program has been at historically high funding levels, particularly in 2025. But lawmakers still noticed problems and there was enough public perception of need surrounding Michigan roads to include more funding for them in 2026.
Dennis said he has concerns that Whitmer and other lawmakers passed a large funding package without effectively addressing where infrastructure issues are throughout the state and why they persist.
“When you have structural policy issues that are leading to money not being spent efficiently, it’s probably not a wise thing to throw more money into that system,” he said.
The marijuana industry filed a lawsuit in circuit court, which has the potential to cause a delay in collection of the new wholesale marijuana tax, Dennis added.
But he said even with the uncertainty, the worst case scenario is that road funding will increase. “It’s hard to say how much help this will do, but it certainly can’t hurt," Dennis said.
