SB 174 is a routine appropriations bill that allocates $6.9 billion in funding for Michigan's State Transportation Department for fiscal year 2025-2026. It specifies funding sources including $2.3 billion in federal revenues, $4.5 billion in state restricted revenues, and $2 million from the state general fund. The bill details how funds will be distributed across department operations, infrastructure maintenance, debt service (like the State Trunkline Fund), and interdepartmental grants to other state agencies. This bill does not create new policies or affect specific groups - it solely authorizes the spending of existing funds for transportation department activities.
This bill allocates state funds to the Michigan Transportation Department for the 2025-2026 fiscal year (ending September 30, 2026). It provides the necessary budget authority for the department to operate and maintain state transportation infrastructure during that period. As a routine appropriations measure, it does not create new policies or directly affect residents or businesses beyond funding existing transportation programs. The bill's sole purpose is to authorize spending for the department's ongoing operations.
HB 4735 requires operators of heavy vehicles (59,999 pounds or more) to report quarterly miles driven in Michigan and pay a $0.0285 per mile "weight-distance fee" starting January 1, 2027. It allows for a $40, 10-day unlimited-mile pass to temporarily avoid reporting and fees. Penalties include fines for missed reports (2% of estimated fee or $100 min), misreporting (50% of fee), and late payments (2% per 30 days, with interest). The bill directly affects commercial trucking operators and owners of large vehicles operating on Michigan public highways.
HB 4875 mandates annual state funding of at least $125 million starting in fiscal year 2026 to cover school transportation costs for students. It directly affects Michigan public school districts by requiring dedicated state appropriations for pupil transportation, as defined under existing state school aid law. The bill creates a permanent funding mechanism ensuring consistent support for school bus services and related operational costs. This provision applies specifically to transportation services for students, not general school funding. The bill is currently under review in the Appropriations Committee after its introduction on September 11, 2025.
HB 4721 creates tax credits for biodiesel sales and production in Michigan, effective 2025-2030. Retail fuel dealers receive credits of $0.02-$0.07 per gallon for selling biodiesel blends (6-9%, 10-19%, or 20%+), while biodiesel producers get $0.02 per gallon. Total credits are capped at $16 million annually for retailers and $2 million for producers, with excess claims distributed proportionally. The bill directly affects Michigan fuel retailers and biodiesel producers by reducing their income tax liability based on specific blend volumes sold or produced.
HB 4722 creates tax credits to incentivize biodiesel use in Michigan. Retail fuel dealers selling biodiesel blends (6-9% at $0.02/gal, 10-19% at $0.05/gal, 20%+ at $0.07/gal) can claim credits, while biodiesel producers get $0.02 per gallon produced. Credits apply for tax years 2025-2030, with a $16 million total cap for retailers and a $2 million cap for producers. This directly affects Michigan fuel retailers and biodiesel manufacturers by reducing their income tax liability for qualifying sales and production.
HB 5029 modifies Michigan's Movable Bridge Fund to clarify how funds are distributed for the operation of publicly owned movable bridges (like drawbridges). It requires bridge owners and operators to submit annual operational cost data, which the state transportation department uses to calculate fund distributions based on estimated costs. The fund, which retains unused money year-to-year, may also cover required federal bridge inspections or analyses if no other funding exists - until December 2030. Operational costs covered include routine operation expenses (e.g., staffing), but exclude maintenance, repairs, or capital improvements.
HB 4230 creates a new "neighborhood road fund" in Michigan's state treasury, funded by $100 million annually from income tax revenues (specifically from Section 695 of the 1967 Income Tax Act). This fund directly affects county road commissions, city and village road agencies, and the local bridge advisory board. Key provisions require $100 million yearly to be reserved exclusively for repairing closed, restricted, and critical bridges (managed by the advisory board), while the remaining funds are distributed to road agencies based on their road mileage - $100,000 per county commission plus a mileage-based share for all counties, and similarly for cities/villages. The bill specifies these funds must cover road preservation, maintenance, and preventative work without requiring local matching funds.
SB 695 allows regional transit authorities in Michigan to charge an extra $1.20 per $1,000 of a vehicle’s value (on top of standard registration fees) for transit funding, but only if approved by voters in a November election. It requires ballot measures to specify how funds will be used and limits spending to transit projects. The tax applies to regular vehicle registrations in transit regions, excluding company test vehicles (e.g., manufacturer-owned vehicles used for testing). It takes effect January 1, 2027, pending approval of related legislation. This change directly affects vehicle owners in participating transit regions through their registration costs.
SB 578 creates a new Neighborhood Roads Fund to support maintenance of local neighborhood streets and modifies the existing Movable Bridge Fund to improve bridge infrastructure funding. The bill changes how these funds are managed and allocated, directly affecting local governments responsible for road and bridge upkeep. Key provisions include establishing dedicated funding sources for neighborhood roads and adjusting eligibility rules for bridge repair projects. These changes clarify state funding streams for community infrastructure without altering tax rates or new construction policies.
