The report finds:
- The 2025 Transportation Funding Package is intended to provide $1 billion in new and newly-earmarked road funding in Fiscal Year 2026, increasing to $2 billion by Fiscal Year 2030. By creating a new Neighborhood Roads Fund, which prioritizes county road commissions and city/village road agencies, instead of amending the current formula, the package is likely to create confusion about which laws apply in the use of which funds.
- The 2025 Transportation Funding Package is unlikely to provide funding on the schedule intended by the legislature. Much of the newly dedicated revenue is likely to be delayed from distribution, and may not become fully available. While roads funding will increase, the uncertain amount and timing of the funding increase will impose challenges for road agencies when planning construction projects.
- Michigan’s roads program and funding approach is overly complicated, inefficient, and ineffective at putting available funding to the best use. The 2025 Transportation Funding Package did not address any issues beyond funding. It remains to be seen how helpful the new funding will be in improving Michigan’s roads and bridges.
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