Governor Whitmer Kicks Off Final Road Construction Season as Marijuana Tax Lawsuit Threatens Infrastructure Funding

Whitmer Launches Infrastructure Push in Last Year in Office

PLYMOUTH, Mich. — Governor Gretchen Whitmer officially marked the start of Michigan's 2026 road construction season Wednesday, wearing a hard hat and moving gravel at a construction site on M-14. But this is Whitmer's final road repair season.

"I ran on fixing the damn roads, and I am proud to keep my promise and get it done with this year's balanced, bipartisan budget," Whitmer said at the event. "We're making a historic nearly $2 billion investment to fix state and local roads, create tens of thousands of good-paying jobs, and lower costs for drivers across Michigan."

The Whitmer Administration said that through seven balanced, bipartisan budgets, more than $31 billion was invested into fixing Michigan's roads and bridges between 2019 and the end of the 2026 construction season. Officials estimate that 26,500 lane miles of road and almost 2,000 bridges will be fixed.

"With the start of construction season, we will fix more of the damn roads in communities across Michigan," Whitmer said. "I ran on fixing the damn roads, and I am proud to keep my promise and get it done with this year's balanced, bipartisan budget."

The Funding Package That Built Michigan's Roads

The long-term road funding package was announced in October 2025, allocating nearly $2 billion a year into Michigan's state and local roads. The administration says the road funding package protects funding for schools and other essential services.

The package includes eliminating the sales tax on fuel purchases and replacing it with a separate gasoline tax, which ensures all taxes collected at the pump go to roads. Some corporate tax revenue is also now used for roads.

"This is a big investment that was long overdue," Whitmer said. "There's still going to be more work to do here, no question, but this will represent a significant improvement in the infrastructure we all rely on."

The governor's Get-Shit-Done Tour, which launched last month, focuses on sharing the story of Michigan's progress over the past seven years and highlighting her State of the State proposals.

But There's a Catch: Marijuana Tax Under Fire

However, a significant portion of that road funding is in question. The funding relies on revenue from a new wholesale tax on cannabis products — and that tax is being challenged in two separate lawsuits.

The contested levy is a 24% wholesale tax on marijuana that took effect at the start of this year. The Michigan Cannabis Industry Association filed a second lawsuit challenging the tax on April 6, arguing the levy pushes the overall tax burden on marijuana beyond limits established in the state constitution.

"The wholesale levy operates similarly to a sales tax, meaning it is applied before the standard 6% retail tax," said Rose Tantraphol, speaking on behalf of the Michigan Cannabis Industry Association. "As a result, customers end up paying tax on top of an already taxed product, a practice commonly referred to as tax pyramiding."

The contested levy comes in addition to a separate 10% excise duty already applied to cannabis purchases. Industry representatives argue that the combined effect is beginning to weigh on sales figures.

Data released by the state Cannabis Regulatory Board suggests a noticeable decline in revenue following the tax's introduction. Sales dropped from about $269 million in December last year to roughly $226 million in January, a decrease of nearly $43 million. While February figures showed a slight recovery to $234 million, the association maintains that the trend raises concerns about long-term stability.

Tantraphol warned that the financial pressure could threaten jobs across the sector. She noted that the cannabis industry currently supports around 47,000 positions statewide, adding that continued strain from taxation could put that workforce at risk.

"There's nothing sustainable about the road funding plan," Tantraphol said. "It was established through an unconstitutional process and sets up a tax structure that is illegal. The road funding compromise singled out the cannabis industry and has already triggered business closures and job losses. Undercutting one industry isn't going to raise the revenue that the state hopes to raise."

The Constitutional Challenge

The wholesale tax was approved last year as part of a broader plan to address infrastructure funding. However, a separate lawsuit still under review by the state Court of Claims challenges the legitimacy of the tax on procedural grounds.

That case argues the legislation should have required a supermajority vote in the state legislature because it effectively alters a voter-approved law. Michigan voters legalized recreational marijuana in 2018, and any changes to that initiative typically require approval from three-quarters of both legislative chambers.

State officials maintain that the tax does not modify the original legalization framework. Instead, they argue it is part of a separate funding mechanism for road improvements, and therefore does not trigger the higher voting threshold.

"If the courts strike down the measure, funding for road projects would not disappear but would need to be sourced from other areas of the budget," said State Representative Joe Aragona. He added that the governor's administration remains confident in its legal position as the case moves forward.

The Road Ahead

An ongoing construction project on M-14 in Wayne County was part of the focus of the event in Plymouth on Wednesday. The three-year project is expected to be completed in November, which includes major reconstruction and rehabilitation of roads and bridges in the area.

"Thanks to the governor's Rebuilding Michigan program, MDOT was able to rebuild this segment of M-14 and some of the state's most heavily traveled freeways across the state," said Adam Penzenstadler, manager of MDOT's Taylor Transportation Service Center. "That also allowed for rebuilding some of the I-275 non-motorized pathway and several major ramps at the interchange."

While the lawsuit could threaten the sustainability of the road funding plan, the governor's office maintains the infrastructure investment is a bipartisan achievement that puts Michigan ahead of politics.

"The start of construction season isn't just good news for our roads, it's good news for Michigan families, Michigan workers, and Michigan communities," said Rob Coppersmith, executive vice president of the Michigan Infrastructure and Transportation Association. "This boost in investment was decades in the making, and it happened because leaders finally put Michigan ahead of politics."

Whitmer's G-S-D Tour continues throughout the state, focusing on sharing progress stories and listening to Michiganders as she winds down her final year in office.

Sources:

• https://www.wzzm13.com/article/news/local/fixing-the-damn-roads-gov-whitmer-announces-2026-road-construction-season-michigan/69-dcb2f43f-645c-4ed6-a0a3-20966d388ab6
• https://www.wemu.org/michigan-news/2026-04-09/whitmer-kicks-off-her-final-road-repair-season
• https://www.cannabisnewswire.com/420-with-cnw-fresh-lawsuit-filed-challenging-michigans-new-cannabis-tax/
• https://www.michigan.gov/mdot/news-outreach/pressreleases/2026/04/08/mdot-video-news-release-highlights-start-of-2026-road-construction-season
• https://orionontv.org/kicking-off-road-construction-season/