The first payments from the Neighborhood Roads Fund (NRF) were sent to local agencies statewide this week. The NRF was part of the long-term road funding plan aimed at rebuilding state and local roads, bridges, and transit. The plan encompasses a $2 billion annual investment, with future adjustments designed to keep pace with Michigan’s evolving infrastructure needs.
The plan also includes additional funding:
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- $100 million to repair and replace local bridges.
- $100 million for public transit, including new transformational projects and local bus operations.
- $40 million for rail grade separation projects to improve safety and reduce traffic congestion.
The Neighborhood Roads Fund includes:
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- $1 billion per fiscal year from a sales tax and motor fuel tax swap that began on Jan. 1, 2026, and dedicates all taxes paid at the pump for state and local roads, without increasing costs for motorists.
- Dedicates $420 million to roads from revenue generated from a tax on the marijuana industry.
- Shifts $600 million from the Individual Income Tax to the Corporate Income Tax, protecting the general fund and providing a reliable base for transportation funding.
- Phases in an additional $440 million ($88 million annually) from corporate income tax growth to sustain infrastructure investments long term.
Please click here for information on payment disbursements to cities, villages, and counties.
