"The right to criticize government is also an obligation to know what you are talking about."

-Lent Upson, first director of Citizens Research Council

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December 10, 2025

New #FactsMatter Podcast:
Assessing the 2025 Michigan Transportation Funding Package

#FactsMatter host Guy Gordon and Research Council infrastructure associate Eric Paul Dennis met this week to discuss Dennis' recent comprehensive report on the 2025 Michigan road funding package. They explore the implications of the new funding sources, including a marijuana wholesale tax and earmarks for corporate income tax, as well as the uncertainties surrounding revenue guarantees. Local road agencies may also face challenges in accessing new funds due to complex criteria, and the distribution of funds may favor certain local agencies over others.

If estimated revenues are achieved, it could lead to significant improvements in road conditions; however, uncertainty about revenue estimates can hinder long-term planning for road agencies. Only 30% of the new road funding revenues are guaranteed.

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Revenue Uncertainty Defines New Road Funding Package

Estimated Revenue Impact of 2025 Transportation Funding Package, FY2026 to FY2031

The Assessment of the 2025 Michigan Transportation Funding Package was released last week, providing details on sources of new and newly earmarked revenue, as well as how this funding is likely to be distributed between the Michigan Department of Transportation, county road commissions, and city/village road agencies.

An analysis of road funding data from 2013 to 2022 concludes that Michigan ranks 28th nationally, with funding levels similar to peer states such as Ohio and Indiana. Michigan is no longer an underfunded state—it is about average. The 2025 TFP will build on recent funding increases, potentially making Michigan one of the top 15 best-funded states. Yet there is uncertainty around how much of the intended new funding will be available and how impactful it will be.

Read the Report

Other Recent Council Reports:

Social Determinants of Health: Pathways to a Healthier Michigan
Outline of the Michigan Tax System - 39th edition
Unpacking the FY2026 State Budget: Six Things You Should Know

Council Research Reports

Webinar: Lack of Finances Central to State's Lagging Health Outcomes

The Research Council last week hosted a webinar to discuss the findings of a new report on the Social Determinants of Health: Pathways to a Healthier Michigan. The webinar covers findings from the report, including:

Policymakers should invest in making changes that work toward a healthier Michigan. The health of the population directly affects many other government goals spanning virtually every policy area.
In every area of public policy, there is a nexus to health and well-being. When reviewing how social determinants of health intersect, the pathways can be traced to whether an individual has the financial resources to obtain them, either directly or indirectly.
Any sustained progress on this front will be the product of tradeoffs and deliberation from many stakeholders who recognize the connection between improving financial resources and health outcomes in the state.

Watch the Webinar