Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Detroit

Michigan Gas Tax Hike Could Provide Some Relief for Detroit Transit Riders

Michigan state senators voted last week to approve a gas tax hike expected to net more than $1 billion annually to fix the state's notoriously potholed roads, reports the Free Press. The measure, if it passes the House intact, could also be good news for Detroit's woefully inadequate transit system.

A provision of the bill would allow Detroit to spend 20 percent of its portion of the proceeds on transit. Detroit has been funding transit only through its general fund -- with no dedicated revenue stream -- and it has arguably the worst transit system of any major city in the nation. With the city in bankruptcy, general fund revenues for transit have been in short supply. Riders report two-and-a-half-hour one-way commutes, or buses that never show, making it nearly impossible to hold down a job without a car.

Although the region is in the process of merging Detroit's transit system with SMART, the suburban transit provider, establishing a seamless system has been fraught with political challenges. Regional planners, for instance, recently shifted millions of dollars in transit funding from Detroit to the suburbs. A new funding source would be huge.

Under the plan approved by the State Senate, Michigan's gas tax would incrementally rise 17 cents per gallon over the next few years. Raising the tax to fix the state's roads has been a top priority of Governor Rick Snyder, and Republican lawmakers apparently felt comfortable advancing it following the election.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Survey: Most Americans Are Open To Ditching Their Cars

Automakers have spent a century and countless trillions of dollars making car-dependent living the American norm. But U.S. resident still aren't sold, a new survey suggests.

January 21, 2026

You Can’t Afford Wednesday’s Headlines

Americans want to live in walkable areas near transit, but not enough housing is being built there, driving prices out of reach for many and forcing them into a car-dependent lifestyle.

January 21, 2026

NYC Warns Delivery Apps to Follow New Worker Protection Laws

The Mamdani Administration sent letters to over 60 delivery app companies, warning they must comply with new regulations.

January 20, 2026

What the ‘Abundance’ Agenda Could Mean For Equitable Transportation

Could Ezra Klein and Derek Thompson's buzzword usher in an era of bountiful transportation options, or just more highways?

January 20, 2026

Tuesday’s Headlines Weigh Perception and Reality

It may be driven largely by the media — car crashes are too common to make the news — but a feeling that transit isn't safe is hurting ridership.

January 20, 2026

Monday’s Headlines Wonder About E-Bikes’ Future

E-bike sales surged in 2020 and 2021 but have been flat ever since.

January 19, 2026
See all posts