Michigan House Speaker Matt Hall (R-42) on Sept. 25 announced a budget deal that will include up to $1.8 billion for roads over the next five years. The plan, originally due in July, must be approved by Oct. 1 to avoid a state government shutdown.
Shortly before the announcement was made, a bill that would allocate revenue from a new, 24 percent tax on the wholesale price of marijuana to local roads and bridges passed the Republican-led House on a 78 to 21 vote with bipartisan support. The measure, projected to generate an estimated $420 million annually, now heads to the Democratic-led Senate for consideration. Gov. Gretchen Whitmer (D) expressed support for the proposal.
Michigan and Pennsylvania are the only states that have not adopted a budget for Fiscal Year 2026, and transportation funding has been a significant factor in negotiations between lawmakers in both states.
Additionally, Oregon state senators are expected to return to the capital next week to cast final votes on a transportation funding bill. The legislation — estimated to generate $4.3 billion over 10 years— raises the state gas tax by six cents-per-gallon, increases title and registration fees, and creates a new requirement for electric and hybrid vehicles to enter the state’s road usage charge program.
Follow the ARTBA-TIAC blog for the latest transportation funding news and view the Legislative Dashboard for live bill developments.