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Michigan's pay-per-mile road funding pilot program begins planning phase, expects final report by 2027

Michigan's pay-per-mile road funding pilot program begins
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GRAND RAPIDS, Mich. — Michigan officials are exploring a new way to fund the state's roads as fuel-efficient and electric vehicles reduce gas tax revenue.

WATCH: Michigan's pay-per-mile road funding pilot program begins

Michigan's pay-per-mile road funding pilot program begins

The state is moving forward with a pilot program that would replace the current 30-cent gas tax with a road usage charge system, requiring drivers to pay for every mile they drive.

State roads are currently funded through a combination of state fuel taxes, vehicle registration fees, federal allocations, and general fund or corporate income tax earmarks.

Lawmakers allocated nearly $7.65 million in the fall of 2025 to begin a study into implementing the new pay-per-mile approach.

During a recent episode of the Michigan Department of Transportation's Talking Michigan Transportation podcast, a consultant leading the pilot revealed the initial planning phase began in June. A committee has also been created to increase awareness and recruit volunteers to the pilot program.

Drivers in Grand Rapids expressed concerns about the proposal, particularly around how the state would keep record of the miles someone has driven.

"I don't really like the idea on tracking. Like as an American citizen," Yosef Gage said.

Another driver, Liz Cook echoed those concerns.

"I don't think that they need to track every mile and everywhere I go. They basically do that already with all the cameras everywhere," Cook said

Officials are planning a public education campaign at the end of the year and will begin a six-month trial run starting in February. 1,000 volunteers will participate in the pilot with a final report planned for the end of 2027.

"[Road funding] is a pressing issue. I just don't think that tracking is really the the solution though," Gage said.

This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.

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