House Moves Infrastructure Funding Package

Mar 21, 2025

by Liz Gullett

As MLC’s Communications and Social Media Manager, Liz Gullett keeps clients informed and up-to-date on the goings on in Lansing and the Capitol.

The House of Representatives passed legislation providing an additional $3.1 billion for roads and bridges throughout Michigan. All experts agree that Michigan needs a significant influx of annual spending on infrastructure, but over the past several years, questions over where to get the additional funding have persisted.

The Funding Proposal Breakdown:

    • $1.1 billion from tax changes paid by certain businesses.
    • $945 million from dedicating all taxes paid at the pump to roads.
    • $600 million from increased revenue from higher tax returns.
    • $500 million from spending cuts.

The Legislation:

    • Removes the sales tax on fuel and replaces it with a motor fuel tax.
    • Earmarks $750 million of sales tax revenue to the School Aid Fund to replace the losses incurred from removing the gas tax.
    • Increases the tax rate for businesses that had legacy credits under a prior tax from 4.95% to 30%.
    • Creates the Neighborhood Road Fund, providing funding to local governments for roads and bridges based on the number of road miles.
    • Ends certain economic development grant programs and ends funding to the Strategic Outreach and Attraction Reserve (SOAR) fund.

Next Steps:

    • House Bills 4180 – 4187, and 4230 will be sent to the Senate for consideration.

For a full analysis of the proposal, please click here to read an overview by the nonpartisan House Fiscal Agency.

Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.

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