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Monday, September 29, 2025

Michigan lawmakers reach deal on roads funding and tax cuts ahead of shutdown deadline

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State Rep. David Martin | Michigan House Republicans

State Rep. David Martin | Michigan House Republicans

State Representative David Martin announced that leaders in the Michigan House and Senate, along with the governor, have reached a framework agreement to fund road repairs and complete the state budget before the October 1 deadline. The deal is intended to prevent a government shutdown.

Martin, a Republican from Davison, stated that the agreement addresses urgent infrastructure needs in Michigan, aims for more efficient state government operations, and provides tax relief for working families and seniors.

“This agreement shows what we can accomplish when we focus on delivering results for the people of Michigan,” Martin said. “We are going to fix our roads; eliminate waste, fraud, and abuse in state government; and deliver meaningful tax relief so families can keep more of what they earn.”

The plan includes implementing elements of President Trump’s tax relief policy at the state level by removing state taxes on overtime pay, tips, and Social Security income. According to Martin, this measure will assist over 500,000 residents with their financial obligations.

Nearly $2 billion in additional funding per year is expected to be directed toward local road repairs under this plan. All gas tax revenue collected at fuel pumps will be allocated directly to road projects. Additional funds will come from reducing wasteful spending within the state budget.

Martin highlighted that restructuring Michigan’s budget process is also part of the agreement. The changes are designed to control excessive spending and improve long-term financial stability for the state.

“This agreement marks a new chapter for Michigan,” Martin said. “We are cutting waste, returning more money to hardworking people and seniors, and finally putting every dollar at the pump into fixing our roads. I’m confident this plan will build a stronger future for our state and restore people’s trust that their government can get the job done.”

As negotiations continue ahead of final approval, Martin expects record-high funding levels for schools in Michigan as part of the upcoming budget. He also noted opposition from House members regarding proposals by Senate Democrats to increase hunting and fishing license fees.

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