Michigan launches pilot to test pay-per-mile road funding

Michigan is moving ahead with a pilot program to study replacing the state’s 30-cent gas tax with a road usage charge based on the miles drivers travel. The effort responds to declining fuel-tax revenue as fuel-efficient and electric vehicles become more common.

Lawmakers allocated nearly $7.65 million in 2025 for the study. Planning began in June, and officials are recruiting 1,000 volunteers for a six-month trial starting in February. A public education campaign is planned for the end of 2026, with a final report expected by the end of 2027. Privacy and mileage tracking have raised concerns among some drivers.

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