mlive.com · Justin P. Hicks | jhicks3@mlive.com · September 6, 2026
Michigan aims to test pay-per-mile road funding system in 2027 - mlive.com [Skip to Article](#main) Set weather Back To Main Menu Close Set Weather Location Enter zip code or city and state Set Location [ The mlive.com logo ](https://www.mlive.com) Subscribe Sign in [The $1 Sale is Here!](https://www.mlive.com/digitalsubscription/inline/) [Labor Day Savings End on 9/9/26](https://www.mlive.com/digitalsubscription/inline/) Close # Michigan aims to test pay-per-mile road funding system in 2027 * Published: Sep. 06, 2026, 8:55 a.m. State leaders are looking for an alternate means of funding road repairs and maintenance beyond the long-used fuel tax. Pictured is a file photo of vehicle traffic on South Airport Road in Traverse City, Mich (Garret Ellison | MLive) * * * * * * Set as Google Preferred Source By * [Justin P. Hicks | jhicks3@mlive.com](https://www.mlive.com/staff/reporterjhicks/) Michigan is exploring a new way to fund its roads in the future. Last fall, lawmakers allocated [$7.65 million](https://www.mlive.com/news/2025/10/michigan-finally-has-its-road-funding-solution-heres-what-to-know.html) to study and implement a program to evaluate the possibility of charging a per-mile fee on drivers, also known as a road usage charge system. The current system uses fuel tax and registration fees as the primary funding mechanism, but experts say it’s not a sustainable revenue stream due to increasingly fuel-efficient and electric vehicles. Initial planning phases of the 18-month [pilot program](https://www.mlive.com/public-interest/2025/02/michigan-may-spend-78m-to-test-pay-per-mile-road-funding-system.html) got underway in June, according to Jennifer Roberts, the national road user charge discipline lead at CDM Smith, the consultant behind the pilot. Roberts provided an update during a recent episode of the Department of Transportation’s Talking Michigan Transportation podcast. Officials plan to begin a robust public education campaign before the end of the year, followed by a legislative outreach campaign in January after the newly elected lawmakers take office. Beginning in February, the plan is to begin a six-month trial run with about 1,000 participants who agree to test out the program. A final report will follow by the end of 2027. Proponents of a road usage charge system say it’s more equitable because it accounts for the transition to more fuel-efficient and alternative-fuel vehicles, which have reduced fuel tax revenue and shifted more of the road funding burden on drivers who may not be able to afford those vehicles. “We’ve been using a fuel tax for the last 100 years and that’s worked very well,” Roberts said. “Over time as our fleet has evolved and we’ve got a lot of different vehicles on the roads, that link between road usage and payment has really become flawed or a little more broken.” On the other hand, opponents have raised concerns about privacy, fairness and logistics, including how out-of-state drivers who cross into Michigan would contribute to road funding if the fuel tax was eventually replaced. They also note the small percentage of electric vehicles on Michigan’s roads today and existing high EV registration fees. A 14-member advisory committee was created this year to “guide the development and evaluation of a road usage charge study and pilot program to assess the potential positive and negative findings for mileage-based revenue collection for this state’s roads and highways as an alternative to the fuel tax system.” The committee has discussed identifying focus groups in each region of the state, including anticipated partners and potential skeptics. They’ll seek to hear from a representative group of residents, increase awareness about alternate funding options and recruit volunteers to participate in the pilot. Potential mileage reporting mechanisms include odometer reporting, in-vehicle telematics, plug-in devices or a smartphone app. Committee members are also considering rate setting options. Four states currently have some [form of road usage charge system](https://www.mlive.com/public-interest/2024/06/how-utahs-pay-per-mile-road-funding-system-could-translate-in-michigan.html) in place, including Oregon, Utah, Virginia and Hawaii. Vermont will become the fifth state on that list in 2027. Roberts said it’s important for each state to have their own pilot program rather than simply making decisions based on another state’s trial. That includes collecting state-specific data and hearing from residents on their concerns and preferences. Transitioning to a new type of road funding structure would take years. No changes are planned at this time and any shift would require approval by elected officials, additional public input and new legislation. “Until more states are on board, the fuel tax is going to coexist with alternative funding options like a road usage charge,” Roberts said. ## More [public interest](https://www.mlive.com/public-interest) * [13 road closures on tap this week across Michigan](https://www.mlive.com/news/2026/09/13-road-closures-on-tap-this-week-across-michigan.html) * [Benson holds general election cash advantage. James disclosure delayed in spat with state](https://www.mlive.com/politics/2026/09/benson-holds-general-election-cash-advantage-james-disclosure-delayed-in-spat-with-state.html) * [Detroit confirms first human case of West Nile virus this year](https://www.mlive.com/news/detroit/2026/09/detroit-confirms-first-human-case-of-west-nile-virus-this-year.html) * [Trump asks Supreme Court to revive disputed mail ballot rule](https://www.mlive.com/politics/2026/09/trump-asks-supreme-court-to-revive-disputed-mail-ballot-rule.html) * [U.S. Supreme Court denies Michigan group’s bid for citizenship voting proposal on ballot](https://www.mlive.com/politics/2026/09/supreme-court-denies-michigan-groups-bid-for-citizenship-voting-proposal-on-ballot.html) [](https://www.mlive.com/staff/reporterjhicks/)[ Justin P. Hicks ](https://www.mlive.com/staff/reporterjhicks/) Justin Hicks is a statewide reporter for MLive.com. His coverage areas primarily include transportation, health and data reporting throughout Michigan. Justin led MLive's health coverage through the COVID-19... more [ jhicks3@mlive.com](mailto:jhicks3@mlive.com) [](https://x.com/justinphicks) [](https://www.facebook.com/thejustinhicks) 