News Summary
Governor Gretchen Whitmer and House Speaker Matt Hall have passed a landmark road funding bill in Michigan, allocating nearly $2 billion over four years for infrastructure improvements. The law emphasizes a bipartisan approach and redirects gas tax revenues while implementing a new marijuana tax to bolster funding. This initiative is projected to provide significant financial support, especially to Macomb County, while also enhancing public transit systems and sustaining construction jobs across the state.
Clinton Township, Michigan – Governor Gretchen Whitmer and House Speaker Matt Hall enacted a significant road funding bill on October 13, 2025, allocating nearly $2 billion for improvements to state and local roads over the next four years. This legislative move is aimed at enhancing the quality of roads and overall infrastructure, which is critical for the state’s economy.
The new law emphasizes a collaborative approach involving construction workers, labor advocates, and legislators from both political parties. It redirects taxes collected at the gas pump to road funding, a shift from previous allocations that supported school funding. In addition, a new 24% tax on marijuana has been implemented to further contribute to road financing.
The comprehensive budget package will invest nearly $2 billion annually into road improvements and comprises seven separate bills that focus solely on bolstering road funding. Whitmer has indicated that these enhancements will make driving safer and faster, ultimately benefiting all residents of Michigan.
House Speaker Hall characterized this funding initiative as the “biggest roads deal in history,” underlining the importance of bipartisan collaboration. In addition to funding, the legislation aims to eliminate waste, fraud, and abuse in the allocation of tax revenues.
The new funding plan is especially significant for Macomb County, projected to receive an additional $29.2 million for the 2025-26 fiscal year due to a 35.5% increase in road funds. This initiative addresses a substantial funding gap anticipated when Whitmer’s previous five-year, $3.5 billion borrowing program for highways concludes.
To ensure more effective funding strategies, the new regulations will replace Michigan’s 6% sales tax on fuel with a 20-cent-per-gallon tax increase on gasoline and diesel. This restructuring guarantees that all taxes collected at the pump will be designated exclusively for road improvements. Furthermore, the annual transfer of $600 million from the general fund to the Michigan Transportation Fund will be substituted with corporate income taxes specifically aimed at a new Neighborhood Roads Fund.
Though welcomed, the new marijuana tax has prompted legal challenges. A lawsuit against it could potentially create a $420 million deficit in the road funding agreement should the case be successful. This financial risk adds an element of uncertainty to the projected funding framework.
The updated road funding plan not only targets local roads and bridges but also seeks to enhance public transit systems throughout the state. Senate Majority Leader Winnie Brinks pointed out that this bipartisan budget underscores the collective commitment to serve Michigan, regardless of prevailing political challenges.
The funding plan is expected to sustain thousands of construction jobs across Michigan, responding to the need for infrastructure upgrades. Whitmer’s previous executive orders aimed at promoting road funding were met with limited success, making this legislative accomplishment a significant marker for her administration.
In summary, the new road funding bill signed into law in Clinton Township marks a substantial investment in Michigan’s infrastructure, delivering essential resources to enhance the safety and quality of roads while reflecting a collaborative effort across political lines.
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