Michigan Gov. Rick Snyder last week signed legislation that will set aside a piece of the state sales tax for the transportation fund.
The move was part of the governor's larger push to generate more money for transportation infrastructure projects.
Snyder has urged lawmakers to devise ways to generate up to $1.4 billion of new revenue annually for the cash-strapped transportation system.
SB 251 and HB 4025 will redirect $110 million of sales tax revenue for transportation projects in fiscal 2013. Of the new money, $100 million will be used as a match for federal highway funds.
"I'm pleased to sign legislation creating more and better investment in Michigan's roads and infrastructure," Snyder said in a statement. "This is important to our quality of life and our economic future."