LANSING, Mich. — The Michigan Department of Transportation plans a statewide pilot next year to test charging drivers by the mile instead of relying solely on the per-gallon gas tax as fuel efficiency grows and pump revenue lags inflation.
Under Public Act 22 of 2025, MDOT launched the Michigan Road Usage Charge Pilot Project in mid-2026. In early 2027 the agency will run a six-month pilot with 1,000 participants to explore shifting the primary road funding formula to a per-mile road user charge. A final report of findings and recommendations is due to the Legislature at the end of 2027.
Officials say transportation revenues have not kept up with inflation, squeezing maintenance for roads, bridges, and other infrastructure. Around half of state funding comes from the state gas tax and half from vehicle registration fees. As of October 2026 the state gas tax is 52.4 cents per gallon.
A 2024-2025 MDOT study surveyed Michiganders on road usage charges and tested collection models. Separately, Senate Bill 1187 sought a temporary gas-tax suspension but was not brought to a Senate vote on October 2, 2026, as House Speaker Matt Hall opposed a holiday that could weaken long-term road funding.
The pilot will not immediately change statewide fees at the pump. Legislators would still have to authorize any permanent mileage charge after reviewing privacy, rural and high-mileage drivers, and whether a new system should supplement or replace the gas tax.
