Michigan to pilot mileage-based road fee program starting February 2027

A pilot program to assess a mileage-based road usage charge will start in February 2027 and run for six months, involving roughly 1,000 volunteer motorists. Funded by a state contract with CDM Smith, the study will test odometer data, in-vehicle telematics, plug-in devices and smartphone applications to record miles driven. Officials say the trial will examine technical viability, political palatability and public acceptance, with data security and privacy as key evaluation criteria.

The initiative follows concerns that electric vehicle adoption is eroding gas-tax revenues, prompting discussions of replacing the fuel tax with a user fee. Participation is optional, and a permanent mileage charge could only be enacted after legislative approval. The advisory committee will meet later this month to review progress.