The Michigan Department of Transportation (MDOT) earlier this month reported that the final version of its 2025-2029 Five-Year Transportation Program (5YTP) has been approved by the State Transportation Commission (STC). It will be transmitted to the Michigan Legislature, state budget director, and the House and Senate fiscal agencies by March 1, as required under state statute.
The 5YTP (download below) comprises a list of projects under MDOT’s authority that are planned for funding and construction over the next five years and represent a $15.5 billion total investment in multimodal transportation. MDOT reported that it updates the 5YTP annually with the intent of presenting the public with an opportunity to provide input on its “progress toward creating and maintaining an equitable, resilient and sustainable transportation system.” The document, MDOT added, helps to connect its long-range goals and strategies for asset management with project programming and monitoring of performance measures and budget targets, and sets a foundation for trunkline projects in the State Transportation Improvement Program.
Highlights of this year’s 5YTP include:
- $15.5 billion in anticipated state and federally funded investments, with:
- $10.8 billion in highway program projects focused primarily on repairing and rebuilding MDOT roads and bridges, with Michigan Gov. Gretchen Whitmer’s $3.5 billion Rebuilding Michigan program contributing more than $270 million to that total.
- $4.7 billion in multimodal programs, covering MDOT public transportation (bus, marine, rail, and ports) at $3.6 billion—with $2.8 billion for bus and marine, and $786.5 million for rail and ports—and aeronautics at $1 billion. “These investments will provide essential support for developing and maintaining a vibrant and sustainable multimodal transportation system that provides safe and easy movement of people and goods throughout the state,” MDOT reported.
- Highway, public transportation, and aeronautics program initiatives and challenges, along with progress on the Gordie Howe International Bridge project.
- A summary of public comments received during the comment period (Aug. 2 to Sept. 3, 2024).
According to MDOT, the 5YTP is supported by a combination of state and federal funding sources. Highway Program funding comes from the Federal Highway Administration’s Highway Trust Fund, the State Trunkline Fund, and state bond financing. The Public Transportation Program is funded with federal discretionary and formula programs and the Michigan Comprehensive Transportation Fund. Public Act 51 of 1951 mandates how state transportation funds credited to the Michigan Transportation Fund are distributed between MDOT and local entities and directs transportation revenue between the State Trunkline Fund, local road agencies, and the Michigan Comprehensive Transportation Fund. The total funding available for this 5YTP, as of September 2024, is just more than $17 billion.
The total federal and state Public Transportation program funding (rail, intercity bus, public transit, marine/port) for FY25-29 is $3.6 billion. The Aeronautics program funding is $1 billion. Estimates for Public Transportation include 2% growth in Federal Transit Administration (FTA) formula and discretionary funds, a one-time state General Fund allocation of $11 million for public transit and rail, onetime federal American Rescue Plan Act of 2021 (ARP) allocation of $20 million for public transit, and a state unreserved fund appropriation of $30.4 million. For rail, the Infrastructure Investment and Job Act (or Bipartisan Infrastructure Law) provides competitive funding opportunities for passenger, crossing, freight, and port projects but no ongoing federal revenue other than for grade crossing safety programs. Federal revenue for Aeronautics is estimated based on funding levels from previous years, as a new authorization act from the Federal Aviation Administration is yet to be approved. The Michigan Comprehensive Transportation Fund is the primary source of state funding for capital and operating expenses in the Public Transportation Program. Aeronautics revenue comes from the State Aeronautics Fund, which comes from sales tax and excise tax on aviation fuel and the Airport Parking Tax; state funding for Aeronautics is currently insufficient to support the match requirements for all available federal funding as well as other programs not eligible for federal grants.
