Michigan Association of Public Employees

Gov. Gretchen Whitmer, Senate Majority Leader Winnie Brinks, Speaker of the House Joe Tate, and other legislative leaders celebrated passage of a balanced and bipartisan budget for fiscal year 2025 that boosts infrastructure improvements and public safety, supports students, and builds affordable housing.

“We are once again setting Michigan up for success by making record investments that will benefit everyone across the state without raising taxes by a penny,” Whitmer said. “This budget will grow our economy, fix the damn roads, ensure first responders have the funding to keep our neighborhoods safe, and build a heck of a lot more affordable housing, while also bringing down costs and putting more money back in people’s pockets.”

The $82.5 billion FY25 budget includes a general fund total of $15 billion and a school aid budget of $19 billion.

“These investments lay the groundwork to make real improvements to local infrastructure and create strong hometowns for Michiganders," said state Rep. Angela Witwer, D-Delta Township, chair of the House Appropriations Committee. "Through investing in community revitalization, education and public safety, we are working to deliver stability people can depend on.” 

“This ‘Make it in Michigan’ budget will help kids learn, reduce crime, lower costs for families, and fix our roads and bridges,” said State Budget Director Jen Flood. “This budget will benefit Michiganders for decades to come and builds on our proven track record of fiscal responsibility while creating jobs and powering economic development.”

A $75 million new Revenue Sharing Trust Fund supports local communities and the services they provide including first responders, transportation, and water infrastructure, as well as placemaking and recreation opportunities. The budget powers economic development, rebuilds roads and bridges, builds strong communities, replaces lead pipes and more, including:

Economic Development

  • $45.5 million for Talent and Growth including specialized economic assistance to businesses locating or expanding in Michigan to meet their talent and workforce needs, developing customized talent solutions to fill identified talent gaps, and grow Michigan’s population.
  • $2.5 million for the Economic and Worker Transition Office to aid Michiganders with the transition to electric vehicles and clean energy, and prepare for the jobs of the future.
  • $50 million in continued funding for the Revitalization and Placemaking program, including a new program to implement transformational public space development projects that will increase the population by creating high-density, high-amenity, walkable, vibrant neighborhoods and business ownership opportunities for locals.
  • $10 million for Minority Owned Business grants.
  • $100 million to construct more affordable housing, building on the historic $1.4 billion investment to build or rehabilitate almost 10,000 homes and the $50 million set aside for housing.
  • $3.3 million for the Housing Readiness Incentive Grant Program for local community grants to cover costs of master plan updates, zoning amendments, and other actions to increase housing supply and affordability.
  • $3 million to establish a Farm to Family program, fueling agricultural growth and diversity, increasing food security, providing healthy food options, and cultivating climate resiliency across the industry.
  • $500 million in continued investment in the Strategic Outreach Attraction Reserve fund to attract new manufacturers and industries, diversifying Michigan’s economy and competing nationally for high-paying jobs.
  • $60 million to establish an Innovation Fund to invest in scalable startups and help launch hundreds of new Michigan-based companies, creating thousands of jobs.
  • $15 million to build off the Pure Michigan campaign, on top of the $15 million in existing general fund for the program.
  • $2.5 million for the Office of Rural Prosperity to expand outreach and grant funding in rural communities.
  • $75 million in a new Revenue Sharing Trust Fund to continue support for all cities, villages, townships, and counties across the state.

Rebuilding Michigan's Infrastructure

  • $150 million to reopen the Palisades Nuclear Facility in Southwest Michigan, protecting 600 high-paying plant jobs and 1,100 additional community jobs, helping Michigan reach its clean energy goal.
  • $509.4 million for lead service line replacement and water infrastructure, and climate change mitigation.
  • $48.3 million for loans and grants to local communities to support projects associated with lead service line replacement.
  • $74.5 million of new one-time funding for local roads, bridges and other critical infrastructure projects.
  • $247.6 million of new funding to improve state and local roads, highways, and bridges. The FY25 budget includes a total of $4.2 billion for road and bridge construction projects, including $1.7 billion in federal highway aid from the Infrastructure Investment and Jobs Act.
  • New investments in roads and bridges will add to $700 million from the final tranche of Rebuilding Michigan Plan bonds to be issued later this year. Key upcoming projects include work on I-94 near Detroit Metro Airport, I-696 from Southfield through Warren, and a critical bridge project in Erie Township.
  • $75 million of additional funding to support local transit operating expenses, federal transit capital grants, marine passenger services, rail operations and transit capital matching funds.
  • $20 million of federal American Recovery Plan funding for local transit operating expenses.
  • $24 million for new technology and mobility projects, including drone infrastructure projects, e-bike incentives, and an inductive charging pilot project.
  • $7.1 million of additional funding for Michigan airports and air service retention and enhancement.

Click here for more information about the approved FY25 budget.