LANSING, Mich. (Michigan News Source) – Michigan’s experiment with potentially charging motorists by the mile has a new wrinkle: the consulting firm paid millions to judge whether the idea makes sense already supports replacing fuel taxes with road usage charges.

$6.3 Million Contract

The Michigan Department of Transportation (MDOT) awarded engineering and consulting firm CDM Smith a $6.3 million contract to conduct the state’s road usage charge feasibility study and pilot program. MDOT records confirm CDM Smith was selected to assist with the 2026-27 project.

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The company’s work won’t be limited to crunching numbers. According to State Administrative Board records, the project includes planning, procurement, statewide public outreach, education and legislative engagement. The pilot is expected to begin in February 2027 with roughly 1,000 volunteer drivers.

Studying a Business It Already Knows

That’s where Republican Rep. Matt Maddock, R-Milford, sees a problem.

CDM Smith already works in the road usage charge (RUC) industry and says it supports moving away from traditional fuel-tax revenue toward what it calls “sustainable user-based fees.” The company has worked on mileage-based programs in states including Washington, Hawaii, Minnesota and Utah.

Maddock told Michigan Capitol Confidential the arrangement raises questions about whether taxpayers are getting an independent assessment.

“A $6.3 million ‘feasibility’ contract to a company that already sells these systems is not independent analysis,” Maddock said.

From Study to Sales Pitch?

As Michigan News Source previously reported, lawmakers appropriated $7.65 million for the overall study and pilot, which will examine ways of recording mileage including odometer readings, smartphone apps, plug-in devices and vehicle telematics.

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For now, Michigan is paying millions to decide whether pay-per-mile makes sense – with help from a consultant that already supports replacing fuel taxes with road usage charges.