[[{“value”:”
LANSING, Mich. (WILX) – On Monday, Governor Gretchen Whitmer released her highly anticipated plan to fund Michigan’s road repairs. The plan comes a week after the governor proposed $4.9 billion for road projects for fiscal year 2026.
Since 2020, billions of dollars have been spent rebuilding nearly 23,000 miles of Michigan roads. However, funding from the state bond program for those repairs is drying up in 2025, leaving a ‘revenue cliff’ for fiscal year 2026.
The Michigan Infrastructure and Transportation Association has said the state needs to find $4 billion annually for the next 20 years to keep up with road repairs.
The governor’s plan would generate $3 billion for local roads by redirecting $500 million in existing funds as well as adding or raising taxes and fees.
The plan would add a new tax on marijuana that is expected to generate $470 million. The plan would also move taxes paid at the pump from the school aid fund to roads, generating $1.2 billion.
The governor’s proposed plan suggests $1.6 billion in tax and fee hikes that are still to be determined. Whitmer suggests increasing the corporate income tax, adding a new tax on digital electronic advertising, increasing fees for heavy trucks, and asking massive corporations like Amazon, X, Facebook, and TikTok ‘to pay their fair share.’
In total, the plan would generate $4 billion. $1 billion would be used to backfund the school aid fund.
Michigan drivers all over the state have noticed progress being made on state highways. However, people in Lansing like Mark Miller say local roads continue to be in rough shape.
“It seems like every main road [in Lansing] has got potholes,” Miller admitted.
Miller lives on the southwest end of Lansing and said some roads haven’t been paved in 25 years. He said he doesn’t believe he should have to pay more taxes to pay for roads.
“From what I pay, property taxes, income taxes, city income taxes, and other taxes for my license plate. I think [the money] is more than efficient to be able to repair the roads, especially locally,” Miller said.
Governor Whitmer’s proposed $85.5 billion budget for fiscal year 2026 is the largest in state history.
State Republicans have proposed their own road funding plan that would generate $3.1 billion in new revenue without raising taxes or making cuts to the school aid fund.
Rep. Sara Lightner (R), Springport said the governor’s plan still needs work. However, she applauded the governor’s proposal to ensure all taxes paid at the pump go toward roads.
“I can appreciate that she’s doing the tax shift so the money is actually used for roads and not everything else,” Rep. Lightner said.
Governor Whitmer and the Democrat-controlled state Senate must now work with Republicans in the state House to find the best way to fund Michigan’s road repairs.
Lawmakers have a goal to complete the state budget by Jul. 1. Fiscal year 2026 begins on Oct. 1.
READ MORE: Republican lawmakers unveil plan to fund Michigan roads
Subscribe to our News 10 newsletter and YouTube page to receive the latest local news and weather. Looking to hire people, or grow your business through advertising? Gray Digital Media is your one-stop marketing solution. Learn more.
Copyright 2025 WILX. All rights reserved.
“}]] The governor’s plan would generate $3 billion for local roads by redirecting $500 million in existing funds as well as adding or raising taxes and fees. Read More
