Michigan House Speaker-elect Matt Hall has warned that Michigan’s road funding faces a crisis in 2026 and proposes an annual increase of $2.7 billion for infrastructure.
He wants lawmakers to address road funding during its upcoming lame-duck session that starts on Dec. 3.
Hall’s plan would redirect nearly $3 billion annually, using existing tax dollars and expiring corporate handouts. His proposal includes directing $1.2 billion in corporate income tax revenue to infrastructure immediately, adding $600 million in 2026, and allocating approximately $1 billion from the state’s gas tax exclusively for road funding.
It also seeks to replace three current earmarks: $500 million from the Strategic Outreach and Attraction Reserve (SOAR) Fund and $100 million from the Revitalization and Placemaking (RAP) and Housing and Community Development Funds, which expire in 2024-25.
Additionally, Hall suggests replacing the 6% sales tax on motor fuel with a revenue-neutral increase in the motor fuel tax, expected to yield around $945 million.
