Lansing, Michigan – Michigan’s new road-funding system is beginning to move from legislation to pavement, with local governments now receiving their first payments from the Neighborhood Roads Fund.
The numbers are already substantial. Michigan’s July 2026 NRF report lists about $112.1 million for counties and $60.3 million for cities and villages, putting more than $172 million into those local distributions.
Gov. Gretchen Whitmer announced the first disbursement on Sept. 14, saying the fund is part of Michigan’s long-term transportation plan, which is designed to eventually provide nearly $2 billion annually for state and local roads, bridges and transit. The state projects roughly $1 billion in new transportation revenue in fiscal year 2026, growing to nearly $2 billion annually by fiscal year 2030.
“Fixing the damn roads means less wear on your car, a smoother drive, and safer travel for every Michigander,” Whitmer said.
Beyond direct distributions to counties, cities and villages, the Neighborhood Roads Fund includes $100 million annually for local bridge repairs, $40 million for rail grade-separation projects, and a combined $100 million for public transportation-related funding under the initial allocation structure.
State officials said the new money is intended to supplement existing local road and bridge work, giving communities additional capacity to tackle projects that may previously have been difficult to finance. Lansing Mayor Andy Schor said cities have long sought additional state support for neighborhood streets, while Marquette Mayor Paul Schloegel pointed to the challenge of maintaining nearly 90 miles of roadway through Upper Peninsula weather. Kent County Road Commission Managing Director Jerry Byrne said the additional revenue could allow larger road and bridge improvements than existing resources previously supported.
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The fund was created under changes to Michigan’s transportation funding laws and became effective for local accounting purposes in June 2026. Its revenue structure includes money generated through several sources, while the distribution formula directs remaining funds among county road agencies, cities, villages and the state transportation system after designated programs receive their allocations.
Detailed monthly payment information for individual cities, villages and county road commissions is available through the Michigan Department of Transportation’s transportation funding reports.