LANSING — Governor Gretchen Whitmer took the lead this week by releasing a comprehensive road funding solution that would redirect taxes collected at gas pumps, require corporations to help pay for roads they use and a new tax on marijuana to help revenues get higher. Whitmer’s plan is a first salvo in a sure-to-be back and forth between her administration and the legislature.
Speaker of the House Matt Hall, released a much smaller $945 million roads plan to uses a new Motor Fuel Tax on drivers to raise the bulk of the funding. In contrast, Whitmer raises significantly more funding and does not include a new tax on drivers.
In a release, Governor Whitmer stated, “Since day one, I’ve been focused on fixing the damn roads, and while I’m proud of the progress we’ve made, there’s still a lot more to do. Today, I’m excited to introduce my brand-new plan that 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. My plan is fiscally responsible and balanced, with both new revenue and cuts so we can lower costs for families. I’m grateful to Speaker Hall for sharing this priority, and I look forward to working with him and both parties in the legislature to get this done.”
According to the release: Governor Whitmer is proposing a $3 billion plan to fix the damn roads that is not funded on the backs of commuters, reflects Michigan’s 21st century transportation infrastructure needs, and ensures local governments still get the resources they need through Constitutional Revenue Sharing, with the plan holding the School Aid Fund harmless. The governor knows that repairing local roads is a top priority, which is why this plan explicitly allocates more than $1 billion in new, ongoing investments for local communities to fix your neighborhood roads, lower the cost of car repairs, and keep your family safe.
The Whitmer administration laid out the key elements of the plan:
Ensure Every Dollar at the Pump will Fix Roads
The Mi Road Ahead Plan will ensure that every dollar drivers pay at the pump goes toward fixing the roads and building better transportation infrastructure and building better transportation. Right now, Michigan drivers pay a federal and state gas tax plus a 6% state sales tax on every gallon of gas but not all of that goes toward roads. Under laws set by previous administrations, 25% of those funds are diverted away from fixing the roads, leaving a gap in funding. The governor’s plan will close the gap by ensuring that every penny drivers pay at the pump goes toward Michigan infrastructure. This will put a total of $1.2 billion towards roads, bridges, and transit across the state.
Require Corporations Pay their Fair Share
Governor Whitmer’s plan will ask massive corporations and Big Tech industries, such as Amazon, X (formerly known as Twitter), Facebook, and TikTok, led by the nation’s wealthiest individuals, pay their fair share to do business in Michigan and use Michigan roadways. Currently, Michigan laws have not been updated to account for Big Tech industries that profit tremendously from using Michigan’s infrastructure. To deliver goods and services to Michiganders these corporations haul heavy weights using semi-trucks that deteriorate roads and bridges faster than commuter vehicles. They also bombard Michiganders with nuisance up advertisements that inconvenience consumers. The governor’s plan will make sure that corporations pay their fair share to do business in Michigan and rebuild roads proportionally to the damage they cause. This will raise $1.7 billion in additional revenue to fix the roads without putting the costs on the backs of everyday Michiganders.
“We rely on Michigan’s roads to live our lives—to get to work on time, get our kids to school safely, and help our businesses thrive. That is why we’ve been working since day one to fix our roads and bridges, save drivers money, and improve Michigan’s infrastructure,” said Lt. Governor Garlin Gilchrist II. “The Mi Road Ahead Plan is a fiscally responsible, balanced plant that will help us build on this work, grow access to public transit, and help local communities across Michigan fix roads. I’m looking forward to continuing the conversation with Michiganders from across the state about how we fix our roads and get it done.”
Cutting Red Tape and Finding Efficiencies and Savings
Since day one, Governor Whitmer has been working to cut red tape, find savings, and make government more efficient. She’s paid down billions in debt and brought the Rainy Day Fund to an all time high of more than $2 billion. Her plan includes fiscally responsible cuts as part of a long-term solution to fix the damn roads. By cutting costs, the governor’s plan will inject $500 million of additional funding into road and bridge repairs.
Close Marijuana Loophole
The Mi Road Ahead Plan will close a loophole that exempted the marijuana industry from wholesale tax, which is applied to similar smoking products, like cigarettes, and other tobacco items. After voters legalized marijuana, the industry has grown exponentially thanks in part to Michigan’s industry-friendly taxes, the fourth lowest in the nation. The 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.
“This is really a need, including for our rural areas the Upper Peninsula,” Denise Donohue, CEO of the County Road Association of Michigan said in support of the plan. “Lots and lots of the roads are local roads. They are not eligible for federal aid and so they haven’t seen an increase in road funding.”
Boost and Build Transit Across Michigan
Michiganders support investing in a robust public transit system that helps more people travel safely, lowers costs for commuters and seniors, and eases congestion on roads and bridges. That’s why the Mi Road Ahead plan will build on the progress we’ve made with $250 million to invest in every local bus service and build new transit projects across the state.
“I’m very pleased that the governor has put forward a comprehensive solution to funding Michigan’s roads,” said MDOT Director Bradley C. Wieferich. “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 MDOT and local agencies to sustain that momentum.”