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The Michigan budget bills on Gov. Gretchen Whitmer’s desk rein in many cuts to Michigan environmental programs that were included in a budget proposal passed by Michigan’s Republican-controlled House in late August.

The previous House budget would have cut $200 million, or roughly 19% of the funding, from Michigan’s Department of Environment, Great Lakes, and Energy, while the present budget proposal reduces the agency’s funding by $71 million, or 7%, according to a House Fiscal Agency analysis.

The budget adds roughly $1.1 billion in annual road and bridge funding, with a small increase in education spending. A stopgap funding measure was passed last week to allow the government to avoid a shutdown until Wednesday.

“What we have (includes) a lot of really important priorities andstayed a lot of cuts,” state Sen. Stephanie Chang (D-Detroit) told Planet Detroit.

Public transit, Michigan hospitals, and the Michigan Department of Natural Resources may benefit from funding included in the budget, which also removed language to weaken PFAS rules and limit the attorney general’s ability to pursue litigation against oil and gas companies.

The budget totals roughly $81 billion when about $5 billion in Medicaid provider tax revenue is included. This is a step down from last year’s $82.5 billion budget, but larger than the $78.5 billion proposal from House Republicans. 

Michigan Gov. Gretchen Whitmer is under pressure to reach a deal, state Sen. Jeff Irwin (D-Ann Arbor) said during budget negotiations in September.

Former Michigan Gov. Jennifer Granholm is widely viewed as responsible for the state’s last government shutdown in 2009, Irwin said, although he argues then-Senate Majority Leader Mike Bishop (R-Rochester) was largely responsible.  

“People see the governor as being in charge, even though, in reality, the governor does have to work with the legislature,” Irwin said.

In a Friday statement, Whitmer said the budget represents a “big win for Michiganders” and is balanced and bipartisan, although she has not yet signed the legislation at the time of writing. 

Michigan budget avoids major environmental job cuts

Cuts at EGLE should have minimal impacts on operations and staffing, agency spokesperson Dale George told Planet Detroit in a Friday statement.

The House budget would have cut 250 full-time EGLE employees, 116 of whom work on water quality programs in the water resources division, according to the Michigan House Fiscal Agency analysis.

Irwin said Monday that cuts to EGLE would likely only affect 15 unfilled positions, although he would prefer to see staffing levels at the agency increased.  

The budget cuts funding for drinking water affordability in the Michigan Department of Health and Human Services budget from $10 million to $5 million. 

Language that would have barred EGLE’s Water Resources Division from spending funds until the department adopts weaker federal drinking water standards for toxic PFAS chemicals was removed from the budget.

A provision to limit Michigan Attorney General Dana Nessel’s ability to join other states in lawsuits or sue the federal government or oil and gas companies was also cut.

Nessel is suing the Trump administration over its energy emergency order, which would fast-track fossil fuel projects, and 3M, Dupont, and other companies for PFAS pollution damages. 

Legislators struck a proposed $50 million earmark for the Copperwood Mine in the Upper Peninsula from the budget, a project that environmental groups and Indigenous nations have opposed, in part because of its proximity to Lake Superior and Porcupine Mountains Wilderness State Park.  

Irwin said this was a “particularly foolish thing to subsidize” because development incentives are normally used to attract businesses that could go to other states.

“The mine can’t relocate to Alabama,” he said. “The mine has to be where the copper is.”

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Michigan budget includes support for health care, parks, transportation

The budget contains some good news for park and public transportation users, with funding increases for some programming, as well as health care funding that could be critical for hospitals.

The Michigan Health & Hospital Association said in a statement that the full funding of Medicaid would help patients maintain health care access, especially in rural and underserved areas.

The Michigan Department of Natural Resources, which manages Belle Isle and other state parks, will see an $8.6 million, or 1.6%, funding increase, including modest bumps to capital funding and staffing.

Officials in charge of managing Belle Isle said last month that cuts to the DNR in the proposed House budget would seriously impact policing and upkeep of the island park. 

The Michigan Public Transit Association praised the budget, which it said would provide increased funding for local bus systems and $65 million for projects to build, expand, and enhance public transportation.

Environmental groups expressed support for the budget’s inclusion of $129 million for communities hosting wind, solar, and battery storage, but Evergreen Action and the Michigan Energy Innovation Business Council criticized a fee hike for electric and hybrid vehicle owners.

Irwin said this is a bad policy that adds an extra fee for EV and hybrid drivers who already pay to cover the cost of what they would have paid in gas tax on an internal combustion vehicle. 

One curious aspect of this year’s proposed budget: the state revolving fund for water infrastructure and many other items were moved to one-time funding. 

Irwin said this stems from a Republican effort to force departments to spend small surpluses they had built up, which could create funding issues in 2026.

“It means that there’s going to be a big budget problem next year.”