SB 578 is sponsored by Veronica Klinefelt (Democrat).

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Michigan 2025-2026 Regular Session Status: Enacted 1 D cosponsors

SB 578 — Highways: bridges; movable bridge fund; modify and create neighborhood roads fund. Amends sec. 11g of 1951 PA 51 (MCL 247.661g) & adds sec. 13c. TIE BAR WITH: HB 4180'25, HB 4181'25, HB 4182'25, HB 4183'25, HB 4951'25, HB 4961'25, HB 4968'25

Last action October 08, 2025 — ASSIGNED PA 0016'25 WITH IMMEDIATE EFFECT

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Introduced
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In Committee
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Passed Senate
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Passed House
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To Executive
6
Enacted

This bill has been enacted into law. Introduced October 08, 2025. Enacted.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 56% · moderate confidence

Enacted

Current position in the legislative process.
1 sponsor

1 primary, 0 co-sponsors signed on.
Single-party support

Sponsorship is currently within one party (1 D).
Mixed recorded votes

5 passed, 1 failed in recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Summary

Highways: bridges; movable bridge fund; modify and create neighborhood roads fund. Amends sec. 11g of 1951 PA 51 (MCL 247.661g) & adds sec. 13c. TIE BAR WITH: HB 4180'25, HB 4181'25, HB 4182'25, HB 4183'25, HB 4951'25, HB 4961'25, HB 4968'25 — Public Act 16 of 2025

Bill Text

What changed in the latest version

127 added · 298 removed

Plain-language change summary

The recent amendments to Bill SB 578 made key changes to sections regarding the management and reporting of state and local road mileage. Specifically, the updated language clarifies how the transportation department will calculate and accumulate highway mileage transferred among different jurisdictions each year. This is important because accurate tracking of road mileage can help ensure that transportation funds are fairly distributed and used effectively for road maintenance and improvements. Additionally, references related to the movable bridge fund were revised to better define the state's role in overseeing this fund and ensuring accountability.

SB-578, As Passed ~~House,~~Senate, ~~October~~September 2,25, 2025 ~~HOUSE~~ ~~SUBSTITUTE~~ ~~FOR~~ SENATE BILL NO.

578 ASeptember ~~bill~~18, to2025, ~~amend~~Introduced ~~1951~~by PASenator ~~51,~~KLINEFELT ~~entitled~~ ~~"An~~ ~~act~~ to ~~provide~~ ~~for~~ ~~the~~ ~~classification~~ of ~~all~~ ~~public~~ ~~roads,~~ ~~streets,~~ and ~~highways~~referred in ~~this~~ ~~state,~~ ~~and~~ ~~for~~ ~~the~~ ~~revision~~ of ~~that~~ ~~classification~~ ~~and~~ ~~for~~ ~~additions~~ to ~~and~~Committee ~~deletions~~on ~~from~~Appropriations. ~~each~~ ~~classification;~~

A bill to amend 1951 PA 51, entitled "An act to provide for the classification of all public roads, streets, and highways in this state, and for the revision of that classification and for additions to and deletions from each classification;

to set up and establish the Michigan truck safety JJR S04855'25_SB578_APS_1 701per commission;

to authorize the state transportation commission, counties, cities, and villages to borrow ~~JJR~~ ~~S04855'25~~ ~~(H-1)_SB578_APH_1~~ ~~p419gf~~ money, issue bonds, and make pledges of funds for transportation purposes;

and to repeal acts and parts of acts," by amending ~~section~~sections 10a and 11g (MCL 247.660a and 247.661g), section 10a as ~~added~~amended by ~~2016~~1992 PA ~~246,~~137 and bysection ~~adding~~11g ~~section~~as ~~13c.~~added by PA 246.

10a.

(1) Annually the state transportation department shall determine the miles of state trunk line highways, county primary and local roads, and city and village major and local streets transferred to and from state, county, city, or village JJR S04855'25_SB578_APS_1 701per 1 jurisdiction during the preceding period of July 1 to June 30.

In each year after that determination, the transferred mileage shall must be accumulated and added to the mileage transferred in each subsequent July 1 to June 30 period.

(2) The current average revenue worth per mile of a county primary road and a county local road shall must be determined annually by dividing the total county primary and local road mileages respectively as of the first day of the preceding July 1 to June 30 period into the total amount of Michigan transportation funds returned to counties pursuant to this act for use on county primary and local roads respectively during that period, except money returned to counties pursuant to section 12(2) and (3).

(3) The total amount of money to be transferred from and to the state trunk line fund, the counties, cities, and villages shall must be determined annually by multiplying the current revenue worth per mile of a county primary road and a county local road respectively by the number of accumulated miles in each category transferred from and to state, county, city, or village jurisdiction.

If the transferred facility becomes classified as part of the local road or street system of the receiving jurisdiction, the transfer of money shall must be calculated on the basis of the revenue worth per mile of a county local road.

In any other category of jurisdictional transfer, the transfer of money shall must be calculated on the basis of the revenue worth per mile of a county primary road.

(4) For jurisdictional transfers made from the this state to a county, city, or village after July 1, 1992, the amount in the state trunk line fund to be transferred shall must be transferred to the county, city, or village receiving jurisdiction.

If the JJR S04855'25_SB578_APS_1 701per 1 transferred highway is then classified as part of the local road or street system of the receiving jurisdiction, the transfer of money to the receiving jurisdiction shall must be calculated on the basis of the revenue worth per mile of a county local road as determined in subsection (2).

If the transferred highway is then classified as part of the primary road or major street system of the receiving jurisdiction, the transfer of money to the receiving jurisdiction shall must be calculated on the basis of the revenue worth per mile of a county primary road as determined in subsection (2).

This subsection and subsection (5) shall not be construed to effect do not affect contracts entered into before or after the effective date of this subsection pursuant to Act No.

166 of the Public Acts of 1965, being sections 408.551 to 408.558 of the Michigan Compiled Laws, for the maintenance of a transferred highway.pursuant to either of the following:

(a) Former 1965 PA 166.

(b) 2023 PA 10, MCL 408.1101 to 408.1126.

(5) In cities and villages with a population of 25,000 or more, trunk line mileage that is transferred to local jurisdiction after July 1, 1992 and is then classified as a major street shall must be certified at twice its measured length.

(6) The transfer of funds money under this section shall must be included each year in the October appropriation of the Michigan transportation fund.

Sec.

The state treasurer shall credit to the fund interest and earnings from fund JJR S04855'25_SB578_APS_1 701per 1 investments.

The department shall be is the administrator of the ~~JJR~~ ~~S04855'25~~ ~~(H-1)_SB578_APH_1~~ ~~p419gf~~ 1 fund for auditing purposes.audits of the fund.

Using the estimates developed under this subsection, the department shall distribute a percentage of money from the movable bridge fund to each person or agency JJR S04855'25_SB578_APS_1 701per 1 responsible for the operation of a publicly owned movable bridge.

If the department is responsible for the operation of a publicly owned movable bridge, the money distributed under this subsection ~~JJR~~ ~~S04855'25~~ ~~(H-1)_SB578_APH_1~~ ~~p419gf~~ 1 shall must be distributed to the department.

(b) If additional money remains in the movable bridge fund in a fiscal year after the distribution required by this subsection for operational costs is made, the department ~~shall~~may use ~~the~~that ~~additional~~remaining money to cover other costs for any required local federal bridge load analysis, inspection, or other local federal ~~mandate.~~bridge mandate if no other source of funding is available.

~~Sec.~~Final Page JJR S04855'25_SB578_APS_1 701per

~~13c.~~

~~(1) The neighborhood roads fund is created in the state treasury as a separate fund.~~

~~(2) The state treasurer must deposit money and other assets received from any source in the fund.~~

~~The state treasurer must direct the investment of money in the fund and credit interest and earnings from the investments to the fund.~~

~~(3) Money in the fund at the close of the fiscal year does not lapse to the general fund.~~

~~JJR S04855'25 (H-1)_SB578_APH_1 p419gf 1 (4) The department is the administrator of the fund for audits of the fund.~~

(5) Beginning with the state fiscal year ending September 30, 2026 through the state fiscal year ending September 30, 2030, the money received in the fund each state fiscal year must be distributed as follows:

~~(a) $100,000,000.00 of the money received in the fund each state fiscal year must be deposited and maintained in an account separate from all other money received in the fund.~~

The local bridge advisory board created in section 10(4) must expend money from the account described in this subsection only for the repair of closed, restricted, and critical bridges as determined by the local bridge advisory board as provided in section 10(4) to (13).

~~(b) After the distributions in subdivision (a), $40,000,000.00 shall be appropriated to the local grade separation fund for use under section 11i.~~

~~(c) After the distributions in subdivisions (a) and (b), $100,000,000.00 shall be appropriated as follows:~~

Show all 113 changed lines (73 more)

(i) 35% to the comprehensive transportation fund for use under section 10b for eligible authorities and eligible governmental agencies that provide public transportation services with 5% reserved for agencies in urbanized areas with a Michigan population less than or equal to 100,000 and nonurbanized areas under 49 USC 5311.

~~(ii) 65% to the infrastructure projects authority fund created in subsection (8).~~

~~(d) After the distributions in subdivisions (a) to (c), 80% of the remainder of the money received in the fund shall be appropriated as follows:~~

JJR S04855'25 (H-1)_SB578_APH_1 p419gf 1 (i) 65% to county road commissions, to be allocated in accordance with the provisions governing the distribution and use of Michigan transportation fund revenue returned to counties under section 12.

(ii) 35% to city and village road agencies, to be allocated in accordance with the provisions governing the distribution and use of Michigan transportation fund revenue returned to cities and villages under section 13.

~~(e) After the distributions in subdivisions (a) to (c), 20% of the remainder of the money received in the fund shall be appropriated to the state trunk line fund for use under section 11.~~

~~(6) Beginning with the state fiscal year ending September 30, 2031, the money received in the fund each state fiscal year must be distributed as follows:~~

~~(a) $10,000,000.00 shall be appropriated to the local grade separation fund for use under section 11i.~~

~~(b) After the distributions in subdivision (a), $70,000,000.00 shall be appropriated as follows:~~

(i) 75% to the comprehensive transportation fund for use under section 10b for eligible authorities and eligible governmental agencies that provide public transportation services with 5% reserved for agencies in urbanized areas with a Michigan population less than or equal to 100,000 and nonurbanized areas under 49 USC 5311.

~~(ii) 25% to the infrastructure projects authority fund created in subsection (8).~~

~~(c) After the distributions in subdivisions (a) and (b), $100,000,000.00 shall be appropriated as follows:~~

(i) 6.5% to county road commissions, to be allocated in JJR S04855'25 (H-1)_SB578_APH_1 p419gf 1 accordance with the provisions governing the distribution and use of Michigan transportation fund revenue returned to counties under section 12.

(ii) 3.5% to city and village road agencies, to be allocated in accordance with the provisions governing the distribution and use of Michigan transportation fund revenue returned to cities and villages under section 13.

~~(iii) The remainder shall be appropriated to the state trunk line fund.~~

~~(d) After the distributions in subdivisions (a) to (c), the remainder of the money received in the fund shall be appropriated as follows:~~

~~(i) 71.5% shall be appropriated as follows:~~

~~(A) 65% to county road commissions, to be allocated in accordance with the provisions governing the distribution and use of Michigan transportation fund revenue returned to counties under section 12.~~

(B) 35% to city and village road agencies, to be allocated in accordance with the provisions governing the distribution and use of Michigan transportation fund revenue returned to cities and villages under section 13.

~~(ii) The remainder shall be appropriated to the state trunk line fund.~~

~~(7) Matching funds are not required from a local unit of government or county road commission as a condition for expending money distributed under subsection (5) or (6).~~

~~However, any governmental entity expending money distributed under subsection (5) or (6) may request matching funds from other sources.~~

~~(8) The infrastructure projects authority fund is created in JJR S04855'25 (H-1)_SB578_APH_1 p419gf 1 the state treasury as a separate fund.~~

~~The department is the administrator of the infrastructure projects authority fund for audits of that fund.~~

~~All of the following apply to the infrastructure projects authority fund:~~

~~(a) Money appropriated to the infrastructure projects authority fund and the interest accruing to that fund must be expended by the department only in accordance with subsections (9) and (10).~~

~~(b) Money remaining in the infrastructure projects authority fund does not lapse to the general fund at the end of the fiscal year.~~

(c) By December 30, 2026, and each calendar year thereafter that the infrastructure projects authority fund receives appropriations, the department shall report to the governor, the state transportation commission, and the legislature on the status of projects funded by the infrastructure projects authority fund.

~~The report must include the status of all of the following activities for the previous state fiscal year:~~

~~(i) The location of funded projects.~~

~~(ii) A listing of total money distributed to each region.~~

~~(iii) Individual project funding amounts.~~

~~(iv) Projected individual project benefits.~~

~~(v) Project selection criteria.~~

~~(vi) A listing of individual project support.~~

~~(vii) A running total fund balance.~~

~~(viii) Any other pertinent fund status details.~~

(9) Of the money deposited into the infrastructure projects authority fund each year, the department may expend up to 20% of the money for payment of supplemental operating grants to eligible JJR S04855'25 (H-1)_SB578_APH_1 p419gf 1 authorities and eligible governmental entities, subject to all of the following:

(a) Except as provided in this subsection, the department must allocate supplemental operating grants in a manner that conforms to, supplements, and is proportional to the formula for the payment of operating grants to eligible authorities and eligible governmental entities under section 10e(4)(a).

(b) The department shall not expend any money under this subsection in a state fiscal year in which the amount appropriated from the comprehensive transportation fund for the payment of operating grants to eligible authorities and eligible governmental entities under section 10e(4)(a) is less than the amount expended under that subdivision in the state fiscal year ending September 30, 2026, adjusted by the department each year by an amount equal to the annual percentage increase in the Detroit Consumer Price Index for the preceding calendar year.

(c) The department must not award a supplemental operating grant to any eligible authority or eligible governmental entity until the department has received and reviewed financial documents that demonstrate that the eligible authority or government entity maintains and is in compliance with a balanced budget plan for the current fiscal year.

(d) Money granted to an eligible authority or eligible governmental entity under this subsection is supplemental and in addition to any money that the eligible authority or eligible governmental entity may receive under section 10b.

(10) After making allocations required under subsection (9) in a state fiscal year, the department may make qualified investments in infrastructure mobility projects consistent with section 10b to JJR S04855'25 (H-1)_SB578_APH_1 p419gf 1 eligible authorities and eligible governmental entities from the infrastructure projects authority fund.

The department must consider the following criteria to the extent reasonably applicable before entering into a written agreement with an eligible authority or eligible governmental entity for the qualified investment:

~~(a) Whether the qualified investment is for the development, expansion, or enhancement of a high-capacity mobility transportation project.~~

(b) Whether the qualified investment is for the development, expansion, or enhancement of regional or multijurisdictional high- capacity mobility transportation that connects major population, employment, educational, health care, or other activity centers.

(c) Whether the qualified investment is for the development, expansion, or enhancement of innovative and flexible mobility transportation intended to meet mobility needs in lower density areas, for first- and last-mile transportation solutions, or for other specialized public transportation purposes, including, but not limited to, access to health care.

(d) The extent of support for the qualified investment within the region impacted by the qualified investment, including, but not limited to, support from local government, an eligible authority or eligible governmental entity, and regional anchor institutions such as major regional employers, local and regional economic development organizations, and educational institutions.

(e) The degree of financial participation from regional entities impacted by or supporting the qualified investment, including, but not limited to, local units of governments, public transportation providers, and other regional entities, considering the financial capacity of the regional entities.

JJR S04855'25 (H-1)_SB578_APH_1 p419gf 1 (f) The readiness, financial feasibility, and financial sustainability of the qualified investment, with the qualified investment facilitating a complete capital and operating financial model for the project supported by the qualified investment, with the highest priority for financial assistance provided when the qualified investment is necessary to meet a capital or operating matching requirement for federal funding.

(g) Whether the proposed qualified investment will provide locally or regionally significant benefits for the movement of people or goods, provide regional economic growth, and increase the attractiveness of the region for population growth, job growth, or tourism, with priority given to a qualified investment that includes a transit, multimodal, or nonmotorized component.

~~(11) Grants and qualified investments from the infrastructure projects authority fund may be used to match federal aid, grants, or other assistance.~~

~~(12) As used in this section:~~

~~(a) "Fund" means the neighborhood roads fund unless otherwise specified.~~

~~(b) "Multimodal" means the movement of persons by multiple forms of transportation.~~

(c) "Qualified investment" means a grant, loan, or other economic assistance provided by the department to an eligible authority or eligible governmental entity under this section for a project eligible for assistance under 49 USC 101 to 80504 or 23 USC 101 to 611.

~~Enacting section 1.~~

~~This amendatory act does not take effect unless all of the following bills of the 103rd Legislature are enacted into law:~~

~~JJR S04855'25 (H-1)_SB578_APH_1 p419gf (a) House Bill No.~~

~~4180.~~

~~(b) House Bill No.~~

~~4181.~~

~~(c) House Bill No.~~

~~4182.~~

~~(d) House Bill No.~~

~~4183.~~

~~(e) House Bill No.~~

~~4951.~~

~~(f) House Bill No.~~

~~4961.~~

~~(g) House Bill No.~~

~~4968.~~

~~Final Page JJR S04855'25 (H-1)_SB578_APH_1 p419gf~~

Latest

SB-578, As Passed ~~House,~~ ~~October~~ 2, 2025 ~~HOUSE~~ ~~SUBSTITUTE~~ ~~FOR~~ SENATE BILL NO.

SB-578, As Passed Senate, September 25, 2025 SENATE BILL NO.

578 A ~~bill~~ to ~~amend~~ ~~1951~~ PA ~~51,~~ ~~entitled~~ ~~"An~~ ~~act~~ to ~~provide~~ ~~for~~ ~~the~~ ~~classification~~ of ~~all~~ ~~public~~ ~~roads,~~ ~~streets,~~ and ~~highways~~ in ~~this~~ ~~state,~~ ~~and~~ ~~for~~ ~~the~~ ~~revision~~ of ~~that~~ ~~classification~~ ~~and~~ ~~for~~ ~~additions~~ to ~~and~~ ~~deletions~~ ~~from~~ ~~each~~ ~~classification;~~

578 September 18, 2025, Introduced by Senator KLINEFELT and referred to Committee on Appropriations.

to set up and establish the Michigan truck safety commission;

to set up and establish the Michigan truck safety JJR S04855'25_SB578_APS_1 701per commission;

to authorize the state transportation commission, counties, cities, and villages to borrow money, issue bonds, and make pledges of funds for transportation purposes;

and to repeal acts and parts of acts," by amending ~~section~~ 11g (MCL 247.661g), as ~~added~~ by ~~2016~~ PA ~~246,~~ and by ~~adding~~ ~~section~~ ~~13c.~~

and to repeal acts and parts of acts," by amending sections 10a and 11g (MCL 247.660a and 247.661g), section 10a as amended by 1992 PA 137 and section 11g as added by PA 246.

10a.

In each year after that determination, the transferred mileage shall must be accumulated and added to the mileage transferred in each subsequent July 1 to June 30 period.

In any other category of jurisdictional transfer, the transfer of money shall must be calculated on the basis of the revenue worth per mile of a county primary road.

This subsection and subsection (5) shall not be construed to effect do not affect contracts entered into before or after the effective date of this subsection pursuant to Act No.

166 of the Public Acts of 1965, being sections 408.551 to 408.558 of the Michigan Compiled Laws, for the maintenance of a transferred highway.pursuant to either of the following:

(a) Former 1965 PA 166.

(b) 2023 PA 10, MCL 408.1101 to 408.1126.

(6) The transfer of funds money under this section shall must be included each year in the October appropriation of the Michigan transportation fund.

Sec.

The state treasurer shall credit to the fund interest and earnings from fund investments.

The state treasurer shall credit to the fund interest and earnings from fund JJR S04855'25_SB578_APS_1 701per 1 investments.

The department shall be is the administrator of the ~~JJR~~ ~~S04855'25~~ ~~(H-1)_SB578_APH_1~~ ~~p419gf~~ 1 fund for auditing purposes.audits of the fund.

The department shall be is the administrator of the fund for auditing purposes.audits of the fund.

Using the estimates developed under this subsection, the department shall distribute a percentage of money from the movable bridge fund to each person or agency responsible for the operation of a publicly owned movable bridge.

If the department is responsible for the operation of a publicly owned movable bridge, the money distributed under this subsection shall must be distributed to the department.

(b) If additional money remains in the movable bridge fund in a fiscal year after the distribution required by this subsection for operational costs is made, the department ~~shall~~ use ~~the~~ ~~additional~~ money to cover other costs for any required local federal bridge load analysis, inspection, or other local federal ~~mandate.~~

(b) If additional money remains in the movable bridge fund in a fiscal year after the distribution required by this subsection for operational costs is made, the department may use that remaining money to cover other costs for any required local federal bridge load analysis, inspection, or other local federal bridge mandate if no other source of funding is available.

~~Sec.~~

Final Page JJR S04855'25_SB578_APS_1 701per