LANSING — When she first ran for Governor in 2017, now-Governor Gretchen Whitmer had a simple slogan, “Fix the Damn Roads,” that explained her biggest goal to move Michigan forward. After dealing with a Republican legislature her entire first term that showed no interest in fixing the roads and then making progress with a Democratic-led legislature on many other issues, Whitmer was not able to muscle through a deal.
With the election of 2024, Whitmer was forced to govern with a split legislature, a Republican House and Democratic Senate. Governor Whitmer never wavered during the long budget standoff between the Republican House that insisted on cuts and the Democratic Senate that insisted on strengthening programs for families. Whitmer was able to ultimately guide the budget process to a place that cut taxes, preserved vital services and got a road funding deal.
Details of the Deal
In a release from the Whitmer administration, Governor Whitmer declared,“I ran on fixing the damn roads, and I’m proud to keep my promise and get it done. This year’s balanced, bipartisan budget makes a record, nearly $2 billion annual investment to fix our state and local roads, which will make everyone’s drive safer and faster. We’re getting this done by ensuring every penny you pay at the pump goes towards our roads. I’m so grateful to legislators on both sides of the aisle for coming together to get this done so we can build reliable roads that last for decades while supporting tens of thousands of good-paying local jobs. We have a lot of work to do, so let’s move some dirt and fix those damn roads!”
Fixing Michigan’s Roads
The budget secures long-term funding to rebuild Michigan’s state and local roads, bridges, and transit with a nearly $2 billion annual investment and with future adjustments designed to keep pace with Michigan’s evolving infrastructure needs:
- Nearly $2 billion for improving state and local roads when fully implemented over the next four years. This includes
- $100 million to repair and replace local bridges.
- $100 million for public transit, including new transformational projects and local bus operations.
- $40 million for rail grade separation projects to improve safety and reduce traffic congestion.
By the end of this construction season, Michigan will have repaired over 24,500 lane miles of road and 1,900 bridges since Governor Whitmer took office, creating and supporting tens of thousands of good-paying jobs.
A Sustainable Road Funding Plan
The long-term road funding package protects funding for schools and other essential services while ensuring resources are available to fund roads, transportation, and infrastructure:
- $1 billion per fiscal year from a sales tax and motor fuel tax swap that begins on Jan. 1, 2026, and dedicates all taxes paid at the pump for state and local roads, without increasing costs for motorists.
- Dedicates $420 million to roads from revenue generated from a tax on the marijuana industry.
- Shifts $600 million from the Individual Income Tax to the Corporate Income Tax, protecting the general fund and providing a reliable base for transportation funding.
- Phases in an additional $440 million ($88 million annually) from corporate income tax growth to sustain infrastructure investments long term.
Reactions to Roads Plan
The following stakeholders and legislators released statements after the signing of the budget:
“The bipartisan, forward looking, state budget that the legislature passed and the Governor has signed delivers real results for Michiganders,” said Brent Pilarski, Business Manager, Michigan Laborers District Council (LiUNA MI). “Investing an additional nearly $2 billion annually in sustainable long-term road funding creates economic security for business expansion and careers in the construction industry. This budget demonstrates commitment to funding Michigan’s infrastructure and keeping skilled building tradesman employed in Michigan for decades to come.”
“The Governor, Speaker and Majority Leader as well as the legislative chambers put together a creative, multi-faceted road funding package that specifically addresses our local roads and bridges,” said Denise Donohue, CEO of Michigan County Road Associaton. “Michigan drivers are big winners with this package! They will soon begin to see improved bridges and roads, ultimately leading to fewer vehicle repairs and safer driving conditions. And by replacing the sales tax on gas – where Michigan was an outlier among other states – and replacing it with gas tax Constitutionally-dedicated to roads, we now have all state taxes paid at the pump going to roads. These are big wins for the Michigan.”
“We see this budget as the start—not the finish—of the investment our roads and bridges deserve,” said Douglas W. Stockwell, Business Manager and General Vice President of Operating Engineers 324 . “It accomplishes two essential but long-overdue goals: it ensures that money collected at the pump is used as intended and establishes a sustainable, long-term funding plan. For the 15,000 members of Operating Engineers 324 who build, operate, and maintain Michigan’s infrastructure every day, that commitment means stability and continued progress. Directing funds from the pump to the pavement is a major step forward for our members and for Michigan drivers.”
“Every community deserves safe, reliable infrastructure they can count on,” said state Senator Veronica Klinefelt (D-Eastpointe), Chair of the Senate Appropriations Subcommittee on Transportation. “While we’ve been focused on building up state roads in recent years, our local roads haven’t gotten the full attention they deserve. With this ongoing annual investment, we are working to ensure that all our roads — from major highways to neighborhood streets — are being maintained.”
“The people of Michigan deserve a budget that prioritizes their well-being and economic prosperity, especially in the midst of political chaos we too often see coming from Washington DC.” said state Senator Sarah Anthony (D-Lansing), Chair of the Senate Appropriations Committee. “This budget shows we can come together across party lines to fix today’s real problems – from fixing local roads and bridges, to protecting the social safety net, this budget keeps our state moving forward while keeping our people front and center.”
The budget will also improve public transit and rail grade separation statewide, making commutes faster and safer.
