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Transportation Funding Bills

Infrastructure Investment and Jobs Act

On November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act (IIJA) (Public Law 117-58, also known as the “Bipartisan Infrastructure Law (BIL)”) into law. The Bipartisan Infrastructure Law is the largest long-term investment in our infrastructure and economy in our Nation’s history. It provides $550 billion over fiscal years 2022 through 2026 in new Federal investment in infrastructure, including in roads, bridges, mass transit, water infrastructure, resilience, and broadband.

IIJA provides the basis for FHWA programs and activities through September 30, 2026. It makes a once-in-a generation investment of $350 billion in highway programs. This includes the largest dedicated bridge investment since the construction of the Interstate Highway System. 

New programs under IIJA focus on key infrastructure priorities including rehabilitating bridges in critical need of repair, reducing carbon emissions, increasing system resilience, removing barriers to connecting communities, and improving mobility and access to economic opportunity. 

Many of the new programs include eligibility for local governments, Metropolitan Planning Organizations (MPOs), Tribes, and other public authorities, allowing them to compete directly for funding.

Specifically, with regard to transportation, the BIL will:

  • Repair and rebuild our roads and bridges with a focus on climate change mitigation, resilience, equity, and safety for all users, including cyclists and pedestrians. It is the single largest dedicated bridge investment since the construction of the interstate highway system.
  • Improve the safety of our transportation system. BIL invests $13 billion over the Fixing America’s Surface Transportation (FAST) Act levels directly into improving roadway safety. 
  • Improve healthy, sustainable transportation options for millions of Americans.
  • Build a network of electric vehicle (EV) chargers to facilitate long-distance travel and provide convenient charging options. 
  • Modernize and expand passenger rail and improve freight rail efficiency and safety.
  • Improve our nation’s airports.
  • Launches new and expanded competitive grant programs. 

Summary of Michigan’s Road Funding Package

On November 10, 2015, the State enacted multiple statutes that increased transportation funding to provide for additional revenue into the MTF starting in 2017.  As described below, these statutes included increases in fuel taxes and vehicle registration fees, which are constitutionally restricted revenues, and redirected some income taxes to the MTF, which are statutorily derived revenues that are not constitutionally restricted.

Commencing January 2017, the funding was dedicated on an annual basis for transportation purposes in Michigan.  Approximately one-third flows to MDOT and two-thirds to counties, cities, and villages in Michigan.  Such amount is funded from an increase in fuel taxes for gasoline and diesel, and from a 20 percent increase in vehicle registration fees. Effective January 1, 2022, the Department of Treasury can increase the cents-per-gallon rate annually based on the lessor of the inflation rate or 5 percent. On January 1, 2024, the rate increased to 30.0 cents per gallon from 28.6 cents per gallon in calendar year 2023.

Additionally, the funding package and subsequent legislation provides for the redirection of income tax collections to be deposited into the MTF for allocation among MDOT, counties, cities, and villages for state and local highway programs in the amounts of $264 million in 2019, $468 million in 2020, and $600 million annually since 2021.

Excise tax on recreational marijuana was allocated to the Michigan Transportation Fund for distribution to the State Trunkline fund, county road commissions, and cities and villages. Marijuana excise tax allocated to the Michigan Transportation Fund was $69.4 million in fiscal year 2022, and $101.6 million in fiscal year 2023. The projected revenue for the next three fiscal years is $115.6 million in 2024, $121.7 million in 2025, and $127.0 million in 2026. 

Current as of June 2024.