Appropriations subcommittee reviews $7.9 billion MDOT budget, details road funding package

Bill Hamilton of the House Fiscal Agency presented the enacted FY2026 Michigan Department of Transportation budget and the accompanying road funding package, telling the House Appropriations Subcommittee on State and Local Transportation that gross appropriations rise from about $6.8 billion to approximately $7.9 billion, an increase driven primarily by new state restricted revenues from the recently enacted road funding package.

Hamilton said the package includes a 20¢ per gallon increase in the motor fuel tax effective Jan. 1, 2026 (House Bill 4183), which he estimated would generate roughly $1.07 billion from motor fuels over a 12-month rollout. He added that related surcharge increases on plug-in hybrids and electric vehicles would add about $11 million. Hamilton emphasized that many figures in the budget summary are estimates tied to the new revenue sources.

The road funding package also shifts some existing earmarked…