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House Republicans unveil an ambitious plan to redirect billions in tax dollars to Michigan’s crumbling roads, aiming for bipartisan action this December.
$2.7 Billion Infrastructure Plan Targets Local Roads
House Speaker-elect Matt Hall (R-Richland Township) has announced a sweeping plan to tackle Michigan’s deteriorating roads and bridges. The proposal, revealed Friday, aims to allocate $2.7 billion annually to infrastructure using existing tax dollars and expiring corporate handouts, avoiding new taxes while prioritizing local roads.
“Everyone says they want to fix the roads, but nobody has taken real steps to do it,” Hall said. “The people are tired of empty promises. This is a real plan that can start working on day one.”
Hall’s proposal redirects funds from corporate income taxes (CIT) and gas taxes to road repairs, with an immediate $1.2 billion for local road agencies. It also proposes an additional $600 million in CIT revenue by 2026 and reallocates all state gas tax revenue — about $945 million annually — to road funding.
Ending Corporate Incentives to Prioritize Infrastructure
A cornerstone of Hall’s plan is the elimination of automatic funding for corporate incentive programs, such as the Strategic Outreach and Attraction Reserve (SOAR) fund and the Revitalization and Placemaking Fund (RAP). These earmarks, which have faced criticism for mismanagement and underwhelming job creation, will expire after FY 2024-25.
“We’ve seen billions wasted on corporate projects that did little for Michigan residents,” Hall said. “It’s time to use that money where it’s desperately needed — our roads.”
Hall’s plan also replaces the 6% sales tax on motor fuel with a revenue-neutral motor fuel tax dedicated exclusively to infrastructure. This shift would ensure approximately $945 million annually for road repairs without affecting school funding tied to sales tax revenue.
Local Roads Finally in the Spotlight
Critics of Michigan’s current road funding policies, including Hall, point out that Governor Gretchen Whitmer’s 2019 plan to issue $3.5 billion in bonds focused solely on state highways, leaving local roads neglected. Hall argues his proposal corrects this imbalance by channeling the majority of new funds to county and city roads.
“Local roads have been ignored for too long,” Hall said. “This plan locks in funding where it’s needed most and ensures every community sees the benefits.”
Federal Funding Crisis Looms in 2026
Hall’s plan comes as Michigan faces a funding cliff in 2026, when federal infrastructure dollars and Whitmer’s debt-financed highway spending are set to expire. Without new solutions, construction projects could stall, workers could face layoffs, and road conditions could further deteriorate.
“This administration focused only on short-term fixes for state highways,” Hall said. “With federal funds drying up, we need bold action to prevent further decline. We can’t keep waiting.”
A Call for Bipartisanship During Lame Duck Session
Hall is urging bipartisan cooperation to pass the plan during the legislature’s lame-duck session beginning December 3. He emphasized that with state revenues up more than $4 billion since 2018, lawmakers can prioritize roads without raising taxes.
“Michigan residents rejected a 45-cent gas tax hike. We’ve proven there’s enough money to fix our roads without asking for more,” Hall said. “Now it’s up to lawmakers to make this a reality.”
If enacted, Hall’s proposal would represent one of the largest infrastructure investments in Michigan’s history, potentially averting a crisis and improving travel safety across the state.
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