The first of these funds provides a means for state government, local agencies, and business to work together to meet the often extensive and urgent demands placed upon the transportation system by economic development throughout the state. Attracting industry to locate in a community frequently requires an investment in road improvements. When local resources cannot support those improvements, development opportunities and jobs are lost to that community.

Enacted in 1987, the Transportation Economic Development Fund (TEDF) was created to assist in the funding of highway, road, and street projects necessary to support economic growth. The program mission continues to be to enhance the ability of the state to compete in an international economy, to serve as a catalyst for economic growth of the state, and to improve the quality of life in the state. Those eligible to apply for funds are the Michigan Department of Transportation, all county road commissions, and all city and village street agencies.

The types of projects eligible for TEDF assistance are: