The bill amends the existing law regarding the allocation of federal highway research, planning, and construction funds in Michigan. It mandates that 23% to 27% of these federal funds must be allocated to programs administered by local jurisdictions, after deducting specific federal allocations and competitive funds. The bill also clarifies that certain federal aid, such as congestion mitigation and air quality funds, will be excluded from this calculation. Additionally, it establishes a framework for distributing funds to eligible local agencies for transportation purposes, ensuring compliance with state and federal laws.

Key changes in the bill include the insertion of new language that specifies the minimum amounts of state trunk line fund money available to local road agencies in exchange for federal aid obligation authority, which will increase over the years. The bill also modifies the process for the department to award money, requiring it to prioritize matching available federal aid and ensuring that state money exchanged for federal aid is used efficiently. Furthermore, it introduces new requirements for local road agencies regarding project completion timelines and compliance with federal wage and benefits schedules in contracts.

Statutes affected:
House Introduced Bill: 247.660