Nik Rajkovic / news@whmi.com

Incoming Republican leaders in Lansing warn Michigan’s road funding will hit a “revenue cliff” in 2026, and they’ve got a plan to avoid it.

Since COVID, Michigan has spent billions of dollars on nearly 23,000 miles of road and 1,600 bridges. Next year’s state budget includes $4.2 billion for road projects, but the funding drops off in 2026.

“Almost all of that went to MDOT roads and federal roads, so what we’re seeing when we talk to our local people in our communities, they’re telling us there’s no money going into our local roads,” said House Speaker-elect Matt Hall (R-Richland Township).

The County Road Association reports less than half of Michigan’s local roads are in good condition.

Republicans are proposing $2.7 billion for road projects by steering all revenue generated from the gas tax toward roads, with an additional $1.2 billion in corporate income tax revenue in 2025 and $600 million in 2026 for the road fund.

However, it would also remove the sales tax on gasoline and replace it with a higher gas tax, which school groups fear would eat into their sales tax revenue.

Rep. Hall insists his plan will “hold schools harmless.”

“We’re going to need Democrats to get this plan done. So, there are a lot of things I laid out there are even more ways we could backfill school aid, we’ll engage with the Governor, we’ll engage with Tate and Brinks and we’ll figure out exactly which one of those options will backfill schools,” he said.

Gov. Gretchen Whitmer already have issued statements saying they’re “open to having a discussion on finding a long-term funding solution for Michigan’s roads.”

See the GOP's plan attached below.