Transportation: funds; allocation of federal funding; modify. Amends sec. 10o of 1951 PA 51 (MCL 247.660o).

HB 6037 modifies how Michigan allocates federal highway research, planning, and construction funds to local governments. The bill requires that between 23% and 27% of these specific federal dollars be distributed to local jurisdictions after setting aside funds for competitive grants and federally designated projects. Additionally, it establishes a schedule for increasing state trunk line fund contributions to local road agencies, starting at $25 million in 2023 and rising to $50 million annually by 2027. These funds are intended to support local transportation projects in exchange for federal aid obligation authority, with priority given to matching federal awards and maintaining essential state transportation functions.