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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, former Governor Snyder signed the $1.2 billion legislative transportation revenue package. This is the largest state investment in transportation in Michigan history. Below is a high-level summary of the main points:

  • Starting in January 2017, an additional $600 million annually has been raised and dedicated for transportation purposes.
  • Roughly one-third flows to MDOT; two-thirds to counties, cities and villages. After full phase in, local agencies see an estimated 60 percent increase in Act 51 revenue over their 2015 allocation.
  • $400 million in additional fuel tax revenues (fuel taxes rose to 26.3 cents per gallon for both gas and diesel through calendar year 2021. Beginning with the rate effective on January 1, 2022 and January 1 of each year thereafter, a cents-per-gallon rate shall be determined on motor fuel that shall be derived by multiplying the cents-per-gallon rate in effect during the immediately preceding calendar year by 1 plus the lesser of 0.05 or the inflation rate and rounding up the product to the nearest 1/10 of a cent).
  • $200 million from a 20 percent increase in vehicle registration fees.

Starting in 2019, $600 million in additional revenue was phased in from an income tax redirection. The transfers have been phased in over a period of three years: $264 million in 2019; $468 million in 2020; and the full $600 million in 2021 and going forward in subsequent years. This money is divided between the State Trunkline Fund, county road commissions, and cities and villages.

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 during fiscal year 2021 and will continue to be allocated in subsequent years. The projected revenue for the next three fiscal years is $108.0 million in 2024, $113.6 million in 2025, and $117.0 million in 2026.

Note: Current as of March 2024.