Bill Text: MI SB0957 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Transportation: funds; population threshold for certain grants; increase. Amends secs. 10e & 13c of 1951 PA 51 (MCL 247.660e & 247.663c).
Sponsorship: Slight Partisan Bill (Republican 2-1)
Status: (Introduced) 2026-05-13 - Referred To Committee On Transportation And Infrastructure [SB0957 Detail]
Download: Michigan-2025-SB0957-Introduced.html
SENATE BILL NO. 957
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 transportation fund; to provide for the deposits in the Michigan transportation fund of specific taxes on motor vehicles and motor vehicle fuels; to provide for the allocation of funds from the Michigan transportation fund and the use and administration of the fund for transportation purposes; to promote safe and efficient travel for motor vehicle drivers, bicyclists, pedestrians, and other legal users of roads, streets, and highways; to set up and establish the truck safety fund; to provide for the allocation of funds from the truck safety fund and administration of the fund for truck safety purposes; to set up and establish the Michigan truck safety commission; to establish certain standards for road contracts for certain businesses; to provide for the continuing review of transportation needs within the state; to authorize the state transportation commission, counties, cities, and villages to borrow money, issue bonds, and make pledges of funds for transportation purposes; to authorize counties to advance funds for the payment of deficiencies necessary for the payment of bonds issued under this act; to provide for the limitations, payment, retirement, and security of the bonds and pledges; to provide for appropriations and tax levies by counties and townships for county roads; to authorize contributions by townships for county roads; to provide for the establishment and administration of the state trunk line fund, local bridge fund, comprehensive transportation fund, and certain other funds; to provide for the deposits in the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds of money raised by specific taxes and fees; to provide for definitions of public transportation functions and criteria; to define the purposes for which Michigan transportation funds may be allocated; to provide for Michigan transportation fund grants; to provide for review and approval of transportation programs; to provide for submission of annual legislative requests and reports; to provide for the establishment and functions of certain advisory entities; to provide for conditions for grants; to provide for the issuance of bonds and notes for transportation purposes; to provide for the powers and duties of certain state and local agencies and officials; to provide for the making of loans for transportation purposes by the state transportation department and for the receipt and repayment by local units and agencies of those loans from certain specified sources; to investigate and study the tolling of roads, streets, highways, or bridges; and to repeal acts and parts of acts,"
by amending sections 10e and 13c (MCL 247.660e and 247.663c), section 10e as amended by 2012 PA 391 and section 13c as added by 2025 PA 16.
the people of the state of michigan enact:
Sec. 10e. (1) The comprehensive transportation fund is appropriated for each fiscal year in the following order of priority.
(2) The first priority is to pay, but only from money restricted as to use by section 9 of article IX of the state constitution of 1963, the principal and interest on bonds or notes issued under section 18b for comprehensive transportation purposes as defined by law. A sufficient portion of the comprehensive transportation fund is irrevocably appropriated to pay, when due, the principal and interest on those bonds and notes.
(3) After making or setting aside payments required by subsection (2), the second priority of the comprehensive transportation fund is the payment of the department's cost in administering the comprehensive transportation fund. The amount to be expended pursuant to this subsection shall must not exceed the costs appropriated for the administration of the fund in the fiscal year ending September 30, 1987, as adjusted annually on October 1, by the change for the preceding 12 months in the Detroit consumer price index Consumer Price Index for urban wage earners and shall be appropriated annually by the legislature.
(4) After making or setting aside payments required by subsections (2) and (3), the balance of the comprehensive transportation fund shall must be expended each fiscal year as appropriated annually by the legislature pursuant to the state transportation program approved by the commission as follows:
(a) The third priority shall be is the payment of operating grants to eligible authorities and eligible governmental agencies according to the following formulations and subject to the following requirements:
(i) For the fiscal year ending September 30, 1998, and for each fiscal year, thereafter, each eligible authority and eligible governmental agency that provides public transportation services in urbanized areas under 49 USC 5307, with a Michigan population greater than 100,000 shall 200,000 must receive a grant of up to 50% of their eligible operating expenses as defined by the department.
(ii) For the fiscal year ending September 30, 1998, and each fiscal year, thereafter, each eligible authority and eligible governmental agency that provides public transportation services in urbanized areas with a Michigan population less than or equal to 100,000 200,000 and nonurbanized areas under 49 USC 5311, shall must receive a grant of up to 60% of their eligible operating expenses as defined by the department. For purposes of receiving a grant under this subparagraph in nonurbanized areas, eligible costs of services provided by water vehicle shall must be reimbursed at not less than 50% of the portion of the costs not eligible for reimbursement by the federal government.
(iii) Funds shall must not be distributed to an eligible authority or eligible governmental agency under this act unless the eligible authority or eligible governmental agency provides or agrees to provide preferential fares for public transportation services to persons 65 years of age or over or persons with disabilities riding in off peak periods of service. As used in this section, "person with disabilities" means an individual with a disability as that term is defined in 61 FR 56424 (November 1, 1996) and 49 CFR part 27. The preferential fares shall must not be higher than 50% of the regular 1-way single fare.
(iv) Eligible authorities and eligible governmental agencies shall not engage in charter service using vehicles, facilities, or equipment funded under this act except on an incidental basis as defined by 49 CFR part 604.
(v) Notwithstanding any other provision of this subsection, for the fiscal year ending September 30, 1998, each eligible authority and eligible governmental agency shall receive a distribution from the comprehensive transportation fund not less than the distribution received for eligible operating expenses for the fiscal year ending September 30, 1997. Beginning with the fiscal year ending September 30, 1998 and each fiscal year thereafter, For each fiscal year, each eligible authority and eligible governmental agency shall receive a distribution from the comprehensive transportation fund for eligible operating expenses not less than the distribution received for the fiscal year ending September 30, 1997. As it relates to this subsection the ratio between comprehensive transportation funds and local funds in the fiscal year ending September 30, 1989 shall must be maintained for all fiscal years by the eligible authority and eligible governmental agency. Reductions in this ratio shall must require a proportionate reduction in the comprehensive transportation funds provided for any fiscal year.
(vi) Each eligible authority and eligible governmental agency receiving comprehensive transportation funds shall prepare and submit to the department a quarterly report of the progress made in carrying out its local transportation program within not more than 40 days after the end of each fiscal year quarter. The progress report shall must be made on forms authorized by the United States department Department of transportation Transportation under the provisions of the surface transportation and uniform relocation assistance act of 1987, Public Law 100-17, 101 Stat. Stat 132.
(vii) The department shall periodically adjust or redistribute comprehensive transportation funds previously distributed under this subdivision.
(b) For the each fiscal year, ending September 30, 1997, and each fiscal year thereafter, not less than 10% shall be distributed by the department for intercity passenger and intercity freight transportation purposes.
(c) For the each fiscal year, ending September 30, 1997, and each fiscal year thereafter, funds remaining in the fund after payment of the amounts required by subdivisions (a) and (b) shall be distributed by the department for public transportation purposes. For the each fiscal year, ending September 30, 1998, and each fiscal year thereafter, funds shall must be made available to match all projects for eligible authorities and eligible governmental agencies that are approved for federal funding as provided by federal law and for which an approved transportation improvement program (TIP) and state transportation improvement plan (STIP) exist. Funds distributed under this subdivision shall must be expended pursuant to specific line item appropriation for, but are not limited to, the following public transportation purposes:
(i) The specialized services assistance program. The specialized services assistance program shall must be funded with not less than $3,600,100.00 from funds distributed under this subdivision. Funds shall must be distributed according to guidelines developed by the department based upon on the following considerations:
(A) Proposals for coordinated specialized services assistance funding shall must be developed jointly between existing eligible authorities or eligible governmental agencies that provide public transportation services and the area agencies on aging or any other organization representing specialized services interests, as defined in this subdivision. Plans shall must be reviewed and approved by the bureau of urban and public transportation of the department. Upon On approval, the department shall release the funds to the eligible authority or eligible governmental agency which shall then allocate the funds to the area agency on aging or any other organization representing specialized services interests, as defined in this subdivision for the purchase of services as approved in the plan by the department.
(B) If an eligible authority or eligible governmental agency does not exist to provide public transportation service in a county, coordinated proposals for specialized services assistance funding may be submitted by the area agency on aging or any other organization representing specialized services interests, as defined in this subdivision. The proposals shall must be reviewed and approved by the bureau of urban and public transportation of the department. Upon On approval, the department shall release the funds to the area agency on aging or any other organization representing specialized services interests, as defined in this subdivision for the purchase of services as approved in the plan by the department.
(C) For the purposes of this program, "specialized services" means public transportation primarily designed for persons with disabilities or persons who are 65 years of age or older.
(ii) Local bus capital. For the fiscal year ending September 30, 1998 and each fiscal year, thereafter, not less than $8,000,000.00 will must be distributed for either matching federal funds for local bus capital or 100% capital projects for eligible authorities and eligible governmental agencies that are not eligible to receive federal capital formula funds under section 5307 of the federal intermodal surface transportation efficiency act of 1991, Public Law 102-240, or any successor act.
(iii) Local bus new services.
(iv) Not less than $2,000,000.00 in each fiscal year for the credit program established under section 10l.
(v) Public transportation development.
(vi) Other public transportation programs approved by the commission.
(d) The unappropriated and unencumbered balance of the comprehensive transportation fund lapses at the end of each fiscal year and reverts to the comprehensive transportation fund for appropriation in the following fiscal year.
(5) Eligible authorities and eligible governmental agencies shall must receive capital grants each fiscal year by the annual process described in this section. Amounts received by an eligible authority or eligible governmental agency pursuant to this subsection shall must be expended by that authority or agency solely for capital projects that have been approved by the state transportation commission. Any funds approved by distribution to an eligible authority or eligible governmental agency pursuant to this section that have not been encumbered by that agency or authority for an approved capital project by the end of the following fiscal year in which the funds were approved shall must not be expended by the authority or agency and be are available for distribution from the comprehensive transportation fund for the purposes described in this section.
(6) The department, in carrying out the policy of the state transportation commission, shall annually prepare and distribute by December 1, instructions to eligible governmental agencies, eligible authorities, and intercity carriers to enable the preparation of a local transportation program. Eligible governmental agencies, eligible authorities, and intercity carriers shall give public notice of their intent to apply for money in the comprehensive transportation fund to the residents of the counties, townships, villages, and cities affected by the local transportation program and shall make their application available for a period of 30 days. All comments received by the eligible governmental agency, eligible authority, or intercity carrier shall must be transmitted to the department.
(7) On or before March 1 of each year, each intercity carrier, eligible authority, and eligible governmental agency shall submit to the department its local transportation program for the next succeeding fiscal year. The format for each local transportation program shall must be as prescribed by the federal transportation improvement program insofar as Transportation Improvement Program to the extent that it is practical and shall must include project descriptions, funding sources, and justification for each line item, and summary budgets based on distributions anticipated under subsection (4). The program shall must contain at a minimum the contemplated routes, hours of service, estimated transit vehicle miles, costs of public transportation services, and projected capital improvements or projects as exclusively determined by the eligible authority or eligible governmental agency. The costs of service and capital improvements or projects shall must be in sufficient detail to permit the department to evaluate and approve the annual public transportation program. Determination of individual projects to be included in the local transportation programs other than those provided in this subsection shall must be made by the governing body of the eligible authority or eligible governmental agency.
(8) On or before March 1 of each year, the department shall prepare and file for public inspection and review the department transportation program. The department transportation program shall must be prepared on similar format to the local transportation programs, and shall must include a summary description of projects, with funding sources and project justifications for each line item for the fiscal year immediately succeeding the fiscal year in which the program is submitted. In addition, the department transportation program shall must include summary, nondetailed budget and project descriptions and justifications excluding projects contained in a local transportation program.
(9) On or before April 1 of each year, the department shall must prepare and file with the commission the proposed state transportation program for the next succeeding fiscal year. The proposed state transportation program shall must contain the local transportation programs of each intercity carrier, eligible authority and eligible governmental agency, the department transportation program, and the programs for the expenditure of the state trunk line fund as they may have been supplemented, amended, or modified since their original filing. The state transportation program shall must include the estimated amount of money in the funds described in this subsection by revenue source, project justifications, project descriptions funding sources, and budget summaries.
(10) On or before May 1 of each year, the state transportation commission shall act on the state transportation program for the fiscal year commencing on the following October 1. In considering approval of the proposed projects of each intercity carrier, eligible authority, or eligible governmental agency, other than projects that are to be funded pursuant to under subsection (5), the state transportation commission shall consider whether the projects comply with state law, are within funds allocated in this section, whether they may be funded within the approved budgets, whether there are intercity carriers, eligible authorities, and eligible governmental agencies responsible to implement the projects, and the recommendations of the department on individual projects. Upon On making those determinations, the state transportation commission shall approve the projects which best meet the criteria of this subsection.
(11) By October 1, the department and each intercity carrier, eligible authority, or eligible governmental agency shall enter into a contractual agreement or standardized grant memorandum of agreement, which may cover 1 or more projects to be made from this section in the applicable fiscal year to the intercity carrier, eligible authority, or eligible governmental agency from the comprehensive transportation fund.
(12) After a multiyear public transportation program is approved by the state transportation commission, the department may enter into a grant-in-aid instrument with an eligible authority, intercity carrier, or eligible governmental agency obligating the state to a minimum level of funding for approved projects to be available over the multiyear period of the program. This obligation shall be is binding upon on the department as long as the provisions and conditions of the state transportation commission approved program are carried out as agreed.
(13) Contracts and grant memorandum agreements may be audited by the state transportation commission's office of commission audits using rules promulgated by the United States general accounting office General Accounting Office and the terms and conditions of the respective contracts and agreements. Third party Third-party agreements are subject to the review and approval of the department.
(14) Funds distributed by the department may pay 100% of the portion of the cost not eligible for reimbursement by the federal government for eligible capital projects authorized by the state transportation commission using comprehensive transportation funds or the proceeds of notes and bonds issued under section 18b. Priority for funding obligation shall must be given to capital projects for which federal funds have been authorized.
(15) All approved local bus new services initiated by eligible authorities and eligible governmental agencies not in their fourth year or beyond of funding on October 1, 1988, shall must be funded from subsection (4)(c)(iii). Local bus new services shall must be funded under subsection (4)(c)(iii) in the following percentages of eligible operating expenses as determined by the department:
(a) Startup 100%.
(b) First year 90%.
(c) Second year 80%.
(d) Third year 70%.
(e) Fourth year and each year thereafter, as determined by and from funds provided under subsection (4)(a). The balance of eligible operating expenses shall must be met from local revenue sources including farebox. The department shall pay up to 100% of eligible capital expenses during the startup and first 3 years of service, after the third year, the department shall participate in eligible capital expenses in the same percentage as for other eligible authorities and eligible governmental agencies. For the purposes of this subsection, eligible operating and capital expenses means those expenses determined by the department as applicable to existing eligible authorities and eligible governmental agencies. The department shall prioritize annually all requests for comprehensive transportation funds to institute new services under this subsection. First priority shall must be given to eligible authorities and eligible governmental agencies who have not completed their first 3 years of service by October 1, 1998. New services initiated by eligible authorities and eligible governmental agencies under this subsection shall must meet all of the requirements of section 10.
(16) The department shall pay up to 80% of the portion of the cost not eligible for reimbursement by the federal government for intercity passenger operating assistance projects authorized by the commission for the first 2 years of new services. For the third year, eligible costs shall must be reimbursed at up to 60% of the portion of the cost not eligible for reimbursement by the federal government. After the third year, eligible costs shall must be reimbursed at up to 50% of the portion of the cost not eligible for reimbursement by the federal government. Eligible costs of services provided as of September 30, 1981, shall must be reimbursed at up to 50% of the portion of the cost not eligible for reimbursement by the federal government. However, the amount of funds from the comprehensive transportation fund when added to federal funds and local funds shall must not exceed the total operating assistance project cost.
(17) A vehicle purchased, leased, or rented after November 15, 1976, by an eligible authority or eligible governmental agency with funds made available under this act and not already committed under a contract in existence on November 15, 1976, shall must not be used to provide service on a fixed schedule and fixed route for which a passenger fee is charged unless the vehicle is accessible to a person using a wheelchair from a roadway level or curb level, and has accommodations in which 1 or more wheelchairs can be secured.
(18) A vehicle used to provide demand actuated service shall must not be purchased, leased, or rented by an eligible authority or eligible governmental agency after October 1, 1978, with funds made available under this act unless the eligible authority or eligible governmental agency has submitted a plan to the department describing the service to be provided by the demand actuated service to persons 65 years of age or older and persons with disabilities within the applicable service area and that plan has been approved by the department. The department shall approve the plan as submitted or modified or shall reject the plan within not more than 60 days after the plan is submitted. A plan that describes the service to be provided by the demand actuated service shall must not be approved by the department unless that plan provides the following:
(a) That demand actuated service will be provided to persons 65 years of age or older and persons with disabilities residing in the entire service area subject to the plan.
(b) That as a minimum, demand actuated service will be provided to persons 65 years of age or older and persons with disabilities during the same hours as service is provided to all other persons in the service area subject to the plan.
(c) That the average time period required for demand actuated service to persons 65 years of age or older and persons with disabilities from the initiation of a service request to arrival at the destination is equal to the average time period required for demand actuated service provided to all other persons in the service area subject to the plan.
(d) That the eligible authority or eligible governmental agency submitting the plan has established a local advisory council with not less than 50% of its membership representing persons 65 years of age or older and persons with disabilities within the service area subject to the plan and that the local advisory council has had an opportunity to review and comment upon on the plan before its submission to the department. Each eligible authority or eligible governmental agency jointly with the area agency on aging shall approve at least 1 or the equivalent of 12% of the membership of the local advisory council. Each advisory council comment shall must be included in the plan when submitted to the department.
(19) Notwithstanding subsection (18), a plan required by subsection (18) that is not approved or rejected by the department within 60 days after submission shall be is considered approved as submitted.
(20) Subsections (17), (18), and (19) shall not apply to vehicles or facilities used to transport persons by rail, air, or water or to vehicles of common carriers licensed by the department.
(21) After January 1, 1979, the department shall submit an annual report to the legislature detailing the service provided in the prior year for persons 65 years of age or older and persons with disabilities by fixed route service and demand actuated service. This report shall must include a record of passenger usage and shall must be submitted by April 1 of each year.
(22) Notwithstanding any other provision of this section, for each fiscal year that begins after September 30, 2009, the governor and the state budget director shall must include in the annual budget submitted to the legislature for the ensuing fiscal period under section 18 of article V of the state constitution of 1963 an appropriation from a fund or funds other than the comprehensive transportation fund to a street railway organized under the nonprofit street railway act, 1867 PA 35, MCL 472.1 to 472.27, part 5 of the recodified tax increment financing act, 2018 PA 57, MCL 125.4503 to 125.4527, of a sum equal to the difference between the annual operating expenses of the street railway and revenue received by the street railway during the same annual period, including, but not limited to, tax increment revenues received by the street railway under section 23 of the nonprofit street railway act, 1867 PA 35, MCL 472.23. section 523 of the recodified tax increment financing act, 2018 PA 57, MCL 125.4523. The appropriation submitted in the budget under this section shall must not exceed 8% of the total private investment in the street railway as determined by the department. A street railway is not an eligible authority or eligible governmental agency for purposes of subdivision subsection (4)(a).
(23) For each eligible authority and each eligible governmental agency within a public transit region, a regional transit authority shall apply for, receive, and disburse funds under section 8 of the regional transit authority act, 2012 PA 387, MCL 124.548.
(24) As used in this section, "person with disabilities" means an individual with a disability as that term is defined in 61 FR 56424 (November 1, 1996) and 49 CFR part 27.
Sec. 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.
(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:
(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 100,000 200,000 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:
(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 100,000 200,000 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 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 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 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 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.
(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.
