wilx.com · Brayden Willis · September 8, 2026
Michigan to test pay-per-mile system for road funding
# Michigan to test pay-per-mile system for road funding
##### State plans pilot study on road usage charge as gas tax revenue declines
By Brayden Willis
Published: Sep. 8, 2026 at 6:19 PM EDT| Updated: 21 minutes ago
LANSING, Mich. (News 10) - The state of Michigan is planning to test whether drivers should pay for the state’s roads using a pay-per-mile system instead of at the pump.
The program is called a road usage charge. It is a pilot study Michigan is planning to launch that would charge Michigan drivers based on the miles they drive, instead of the gas they buy.
Right now, drivers pay for road repairs through the state’s gas tax. John Peracchio, a member of the advisory committee for the pilot study, said that system is no longer pulling its weight.
“Internal combustion engine vehicles are becoming more fuel efficient, and that is reducing the fuel tax revenue stream significantly. Just at a time when our requirements for roads, bridges, and other modes of transportation is going up,” Peracchio, a member of the Michigan State Transportation Commission, said.
## How miles would be tracked
Peracchio said the state is still working through a few options, and privacy is built into the conversation.
“It could be as simple as an odometer read. It could be leveraging the vehicle’s telematics capability. And then finally, we could leverage this device [Cell Phone]. And we could use it either with location or no location to see how many miles you travel,” Peracchio said.
## Driver reaction
For some drivers, like David Frank, the idea is concerning.
“That sounds like a creative way for Big Brother to have more intrusion in our lives,” Frank, who drives in Michigan, said.
“They waste so much money and... I don’t think the answer is getting more money out of the taxpayers,” Frank said.
Drivers like Asja Thompson say cost and privacy could be an issue, but she’s not immediately against it.
“I would say if it is efficient for both to stay in our own pockets, then I’m okay with it. But if it does cause issues to where people aren’t able to afford to commute as much because they’re being overly taxed, then I wouldn’t do it,” Thompson, who drives in Michigan, said.
## Support for the system
Other supporters of the system, like State Senator Veronica Klinefelt, say a road usage charge system would be a more fair way to fund the roads because it charges drivers according to their personal road usage.
“A Road Usage Charge system creates fairness in the collection of revenue for road repair because it targets the actual usage of each driver, thereby charging drivers appropriately to their contribution to road deterioration. It also allows the state to determine exactly how much revenue needs to be raised to maintain the roads and charge appropriately as opposed to relying on revenue that is not related directly to road usage,” Klinefelt said.
The Michigan Department of Transportation says volunteers for the test will be recruited later this year, with the pilot study set to launch in February 2027 and a final report expected by the end of 2027.
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