MI SB0578

Creates the Neighborhood Roads Fund in the state treasury, with distributions beginning in fiscal year 2026 through 2030 including $100 million annually for repair of closed, restricted, and critical bridges, $40 million for the local grade separation fund, and $100 million split between public transportation (35%) and infrastructure projects (65%)

Allocates 80% of remaining Neighborhood Roads Fund money to local road agencies (65% to county road commissions, 35% to cities/villages) and 20% to the state trunk line fund through fiscal year 2030

Beginning fiscal year 2031, restructures fund distributions with $10 million for local grade separation, $70 million for public transportation and infrastructure projects, $100 million split among counties, cities, and state trunk line, with remainder divided similarly

Creates the Infrastructure Projects Authority Fund to support public transportation capital and operating projects, with up to 20% available for supplemental operating grants and the remainder for qualified investments in high-capacity mobility and regional transportation projects

Modifies the Movable Bridge Fund to allow spending on local federal bridge load analysis, inspection, and other federal mandates through September 30, 2029 if funds remain after operational cost distributions

Eliminates matching fund requirements for local governments and county road commissions receiving Neighborhood Roads Fund distributions