LANSING, MI (WTVB) – The Michigan Department of Transportation (MDOT) officially launched the process for a road usage charge (RUC) study and pilot program on Wednesday, convening its first technical advisory committee meeting to address declining gas tax revenues.
Funded by a $7.8 million allocation in the state budget, the initiative explores replacing traditional fuel taxes with a pay-per-mile system as more fuel-efficient and electric vehicles reduce the state’s primary road funding source.
MDOT officials emphasized that the current gas tax model, while once reliable, no longer provides the sustainable revenue needed to maintain Michigan’s aging highways and bridges.
The upcoming pilot program will be voluntary, seeking feedback from residents on various mileage-tracking methods such as odometer readings or vehicle-integrated devices.
While a final report on the pilot’s feasibility is currently targeted for the end of 2026, transportation officials say that a deadline extension may be necessary to fully analyze the data and address public concerns regarding privacy and equity.
Michigan joins dozens of other states in evaluating RUC models, with the County Road Association of Michigan championing the move as “the way of the future” for infrastructure stability.
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