Revamping Michigan's Roadways

$1.2 Billion Solution to Improve Michigan's Infrastructure

The Issue

Approved in November of 2015, Michigan’s transportation plan helps preserve and repair corroding roads and bridges by means of a targeted, long-term investment. With the potential to bolster Michigan’s economic recovery, the transportation act aims to secure jobs for hard-working families and employers for years to come while protecting low- and middle-income households. 

Where We Stand

The Michigan Chamber of Commerce has been a strong advocate for the expansion of road funding to help improve the state’s crumbling infrastructure. During the 2015–2016 legislative session, the Michigan Chamber strongly advocated to procure the funding necessary to mend Michigan’s deteriorating roads and bridges. Following an extensive debate, the state House and Senate approved a comprehensive $1.2 billion plan to address Michigan’s infrastructure challenges. Known as Public Act 176 of 2015, this piece of legislation provides a long-term funding plan to make Michigan roads safer.  

Key Features of Transportation Plan 

An in-depth, ongoing solution to improve Michigan’s roads, the new fiscally responsible transportation plan is the largest investment in Michigan’s roads and bridges in a half-century. The following stipulations are in place to ensure the protection of key investments vital to the economic growth and sustainability of Michigan:

  • Starting January 2017, the gasoline tax will increase by 7.3 cents
  • The Diesel Tax will be raised to the same rate as the Gas Tax
  • There will be a small increase in vehicle registration fees
  • 60% of funding is designated for local and county roads
  • $600 million will come from existing resources with no anticipated budget cuts on key priorities, such as education, local communities and public safety

With the $1.2 billion investment, the great state of Michigan plans to accelerate more than 330 transportation projects, expand the Homestead Property Tax Credit for low- and middle-income families and provide an income tax cut during periods of economic growth. The new plan also aims to ensure sustainability and future buying dollars by allowing adjustments for inflation.

Staff Contact: 
Rich Studley
President & CEO
(517) 371-2100