Michigan returns with $1.18 billion deal to fund highways

Michigan plans to price $1.182 billion of state trunk line fund bonds Tuesday.

The deal, part of the Rebuilding Michigan road program, will fund the reconstruction of several major highways and other infrastructure projects in the state. It’s hitting the market nine months later than , Whitmer celebrated the state’s ability to take advantage of low interest rates.

Last year, the state announced a plan to issue the remaining $1.9 billion left in the authorization, but it was delayed due to inflation and rising interest rates. After this week’s deal, there will be about $700 million of bond authorization still available for the state to issue. 

Michigan’s 2023 budget increased funding to the DOT by $600 million, and last year’s bipartisan Building Michigan Together Plan directed an extra $5 billion toward transportation, water and high-speed internet projects. The state can also compete for federal grants and expects to receive roughly $7.9 billion in the coming years from 2021’s federal infrastructure package.