Michigan: $5M to Survey Mileage Fee to Fix Roads

Michigan will spend $5 million to survey replacing the state’s waning gas tax revenue with a miles-traveled tax as more electric vehicles drive on roads but pay less to fix them relative to gas- and diesel-fueled vehicles. The newly signed $82 billion 2024 budget directs state officials to apply for grant funding “under the national motor vehicle per-mile user fee pilot program” under the Infrastructure Investment and Jobs Act. Upon awarded grant funding, Michigan must establish a pilot program to determine the feasibility of road usage charges to replace motor fuel taxes for transportation funding.