Will Michigan Finally Invest in Transformational Transit?

After decades of barely even funding maintenance-level investments in public transportation, new legislation just introduced would invest fully $2 billion in transformational transit projects across Michigan over the next decade!

The 5-part bill package would allocate $200 million a year for the next ten years for public transit! As sponsor Rep Jason Morgan told the Detroit Free Press, “this would be the largest sustained investment in transit in Michigan’s history.”

Thank or Urge Your Michigan Legislators to Support Transit Investments

Latest Update 6/20: Progress delayed.

Unfortunately, legislative champions have been unable to garner the votes needed to pass the package in the House, at least at this time. Given the legislature’s planned summer recess throughout most of July and August, progress on this important package is delayed until the fall or later.

It’s important to note that we had substantial support for this massive investment! Most House Dems supported the package that included $2 billion for transit. Two of the Dems who didn’t support the main package proposed an alternative that continued to include $2 billion for transit, but joined by more housing and less business incentives instead. Several House Republicans were seriously considering supporting the initial package as well. But with the budget waiting and recess approaching, they ran out of time to work out a compromise that could win enough votes.

We’re reconnecting with our legislative champions and allies to explore opportunities to bring a similar package up again in the fall or in the lame duck session in December, as the need for transformation transit funding has not waned. Be assured, TRU will continue to fight for transit funding in every way we can.

Update 6/18: 30 orgs urge MI leaders to prioritize transit

More than ever before, we need to remind legislators that transit isn’t just nice, transit is essential. We’ve prepared an organizational sign-on letter that emphasizes how vital public transit is for Michigan residents, businesses, and the state as a whole. If you represent an organization that agrees, please complete this form to add your name to the letter.

Over 30 organizations have signed on to state that transit is essential, groups from all across the state, representing transportation, senior, disability, labor, faith, climate, and justice advocates!

6/13: Debate heats up!

This debate is getting a LOT of attention. Together we’ve mobilized over 1,000 messages and over 100 calls to legislators from more than 15 different organizations. And that keeps growing by the day!

*Senator Mallory McMorrow introduced the package to the House Economic Development Committee on June 4, alongside sponsors Rep Jason Morgan and Mike McFall*

Proposal Details:

Dubbed the “Grand Bargain” for balancing varied state priorities, the package would extend the SOAR economic development funds for another ten years at half the level provided in recent years. Without raising taxes, it would allocate corporate income taxes for each of the next ten years for:

$100 million for affordable housing
$50 million for community development.
$200 million for transformational transit
$250 million for SOAR economic development incentives (instead of the $600 million of the past few years)

Of the $200 million a year for transit, $40 million a year (20%) would be for supplemental operating grants (on top of regularly budgeted Local Bus Operating funds). The remainder would be allocated across the state for transformational transit, defined as:

High-capacity public transportation, including rapid transit, commuter rail, and intercity rail
Regional public transportation that connects major population, employment, educational, and health centers
Innovative and flexible public transportation to meet mobility needs in lower density areas, for first and last mile transportation, and for specialized services
Especially where matching federal funding, where local communities are investing, and where the investment will provide significant benefits for mobility, economic growth, and the attractiveness of the region.

Metro Transit in Minneapolis is one example of successful rapid transit Michigan could look to when developing transformational transit in our state.

Not everyone loves that transit funding is tied to extending SOAR, but that appears necessary to get this “Grand Bargain” passed into law. Governor Whitmer told Crain’s Detroit Business (paywalled) on May 28 that it is important to secure long-term funding for Michigan’s major business-attraction incentives fund and called the introduction of Rep Morgan’s bill “very positive.”

The bill package includes:

Senate bill 559 which amends the SOAR Fund to be called the “Make it in Michigan Fund” with modified requirements and a new Michigan 360 program for investments in public transit, affordable housing, neighborhood stabilization, mixed use development, and other public services
- Sponsored by Senator Mallory McMorrow
- Passed by the Senate in March 2024, awaiting House consideration
Senate bill 562 which allocates 50% of the Make it in Michigan funds into the Michigan 360 program for community investments
- Sponsored by Senator Mary Cavanagh
- Passed by the Senate in March 2024, awaiting House consideration
House bill 5768 which amends the distribution of corporate income taxes as detailed above
- Sponsored by Rep Jason Hoskins and 26 others
House bill 5769 which creates the “Transformational Projects Authority” to award transportation grants to qualified “transformational mobility projects”
- Sponsored by Rep Jason Morgan with 25 others
House bill 5770 which creates the Michigan Mobility Trust Fund to expend funding from the Transformational Projects Authority
- Sponsored by Rep Mike McFall and 26 others

Update 6/4 – Near unanimous testimony in support

TRU was joined by a dozen supporters in person and another 90 in writing in urging the House Economic Development Committee to support the bill package during the June 4 legislative hearing.