On Wednesday afternoon, the Republican-led Michigan House of Representatives approved a $3.14 billion road funding package.
The legislation, which encompasses House Bills 4180, 4187, and 4230, seeks to address funding challenges for transportation infrastructure.
It replaces the sales tax at the pump with a fuel tax, and every penny would go toward infrastructure, which is projected to cost $945 million. Schools would receive additional resources to offset the decline in sales tax revenue.
The plan would also provide $2.2 billion in corporate income tax revenues for roads.
House Bill 4230 introduces the Neighborhood Road Fund, dedicated to local road maintenance and bridge repairs. This initiative aims to ensure long-term funding for local infrastructure projects.
In total, local (county, city, and village) roads will receive $2.55 billion in new support, and state highways will receive nearly $600 million more annually.
“It is long-term funding without raising taxes, and that’s what I’m most excited about,” said State Rep. Donni Steele, R-Bloomfield Hills.
The bill will head to the Senate, where Democrats hold the majority.
“Michiganders don’t have time for nonsense. They are counting on us to work together to come up with solutions that make their lives easier. Republicans are asking you to pay more but get less, and fundamentally, that is a non-starter for me,” Senate Majority Leader Brinks (D-Grand Rapids) said in a statement.
Before the vote this afternoon, Speaker Matt Hall (R-Richland Township) held a news conference where he put pressure on Democrats.
“They have no plans of their own; they are just opposing other plans. I think they are going to face a lot of pressure in their districts over spring break. We will see if they have a plan. We have seen Governor Whitmer’s plan, which is just to raise taxes on everybody, and that’s going to lead to layoffs,” he said.
Governor Gretchen Whitmer introduced her $3 billion road funding plan last February.
Her plan also replaces the sales tax with a gas tax, which would go directly to road and transportation infrastructure.
However, Whitmer’s proposal raises new revenue from large corporations, Big Tech, and the marijuana industry.
The governor’s office responded to the House legislation in a statement, saying: “We are encouraged to see the legislature make roads a priority, but the current legislation moving through the House does not achieve the goal. Michigan drivers have been calling for a sustainable, long-term road funding solution that fixes the roads with the right mix and materials.”
Ed Noyola, the chief deputy legislative director for the County Road Association of Michigan, said a long-term plan to tackle road funding is long overdue.
“It’s been critical for decades. I’ve been lobbying since 1990, and back then, we were talking about the crises and the fiscal cliff that’s forthcoming. And we keep doing moderate fixes, medium-sized term fixes, but not long-term fixes,” he said.
