County Road Association explores alternative funding methods for Michigan roads

The Michigan Legislature's Transportation and Infrastructure meeting on June 24, 2025, focused on exploring alternative funding methods for the state's road systems. Key discussions centered around the challenges posed by the increasing number of electric and hybrid vehicles, which are contributing to a decline in traditional fuel tax revenues.

Ed Noyola, Chief Deputy at the County Road Association, and Denise Donahue, CEO, presented their findings on the need for innovative funding solutions. They emphasized the importance of educating legislators and the public about various options available for road funding, including road usage charges (RUC) and mileage-based user fees (MBUF). Noyola highlighted that these terms essentially refer to similar concepts aimed at generating revenue for road maintenance.

The presenters noted that Michigan is losing revenue due to the rise of fuel-efficient vehicles and called for the initiation of a pilot program to assess the best funding strategies for the state. They stressed the urgency of increasing road funding and establishing transparency in the proposed RUC and MBUF systems.

The meeting concluded with a commitment to further discussions and studies to determine the most effective approach to address Michigan's road funding challenges. The legislators acknowledged the need for immediate action to secure the future of the state's transportation infrastructure.