Michigan May Lose Over $700M In Federal Road Funding

DETROIT (WWJ) – Michigan is in jeopardy of losing more than 700 million dollars in federal road funding.

That’s because the state is short on the money it needs to qualify for that funding– and the cash is due October First.

Senator Mike Kowall– vice chair of the state transportation committee– says the money’s not there because the state is getting less revenue from its 19-cent-per-gallon gas tax.

“As the population decreases, the funding decreases, it’s a spiral effect,” said Kowall.

Kowall says lawmakers may have to divert money going to the general fund to roads to get the federal match.

“In communities where there are more miles traveled, that’s where the majority of the money will be spent. Currently, it’s just thrown into a giant pot, and all 83 counties in the state combat over where those monies will be allocated,” said Kowall.

  • Uncle Scam

    Look, if Michigan is short of money and can’t match $700 million, can’t the Feds just give Michigan the $700 million? What is the rationale here? You have to have the money to get the money? It makes no sense to a poor state that needs help and the Feds are playing games with cash balances. It also sounds like some form of corruption is going on with lobbying financing. Is someone getting palms greased to get Fed money?

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