Michigan lawmakers passed the state’s FY 2027 budget in the early morning hours of July 3rd. The $75 billion budget will take effect at the start of the state’s fiscal year on October 1st 2026, and it comes in $6 billion smaller than the current year’s budget. Lower state revenues, cuts to federal spending on state programs, and a push by House Republicans to reduce government spending all factored into the smaller topline number.
Despite a tighter budget environment, lawmakers approved spending for several programs that impact Michigan’s clean mobility sectors. Here’s a look at what made the cut — and what didn’t.
Going Pro Talent Fund Receives $14.5 Million
The Going Pro Talent Fund will receive $14.5 million in FY 2027, after initially being left out of both the Governor’s executive budget recommendation and the Senate’s budget proposal. The appropriation is a steep cut from last year’s $31 million, but it keeps the program alive for employers who use it to train and re-skill workers. New budget language directs the Department of Labor and Economic Opportunity to prioritize employers who haven’t received Going Pro funds in past years, spreading the smaller pot of money to new recipients.
Maritime Funding Brings New Opportunities for Clean Fuels
The budget includes $13 million in new investments to support maritime and port activity across Michigan, including efforts to implement the Michigan Maritime Strategy. Clean fuel technologies that serve maritime or port logistics operations could be eligible to tap into this funding, opening a new avenue for clean mobility providers working in freight and shipping.
RE-EIED Grant Program Adds $5 Million and RNG Eligibility
The Renewable Energy and Electrification Infrastructure Enhancement and Development (RE-EIED) Grant program, administered by the Department of Licensing and Regulatory Affairs, picked up an additional $5 million. The program funds renewable energy projects, including EV charging infrastructure. New budget language also opens the door for renewable natural gas (RNG) projects to apply, broadening what technologies can benefit from the fund.
Office of Future Mobility and Electrification Adds Focus on Advanced Air Mobility
The Michigan Office of Future Mobility and Electrification will receive $1.5 million to continue its regular operations, supporting five full-time staff. Plus, the office received an additional one-time $800,000 appropriation earmarked specifically for advanced aerial mobility programs. The added funding signals continued state interest in mobility innovation beyond ground vehicles.
Community and Worker Economic Transition Office Funded at $2.3 Million
The Community and Worker Economic Transition Office received $2.3 million to support 10 FTEs. The office helps Michigan employers in the automotive, manufacturing, and industrial sectors navigate the ongoing shift to electric vehicles and clean energy. Boilerplate language requires the office to publish an annual report on its progress.
General Government Budget Avoids Ban on EVs in the State Fleet, but Bars EV Charging
The General Government budget, which funds the Department of Technology, Management and Budget and oversees the state’s motor fleet, added new boilerplate language prohibiting the use of General Government funds for EV charging. An initial proposal, which was not adopted, would have gone further, restricting the state from procuring electric and hybrid vehicles for its fleet, despite their cost-saving benefits.
What Didn’t Make the Cut
With a tighter budget overall, several programs Clean Fuels Michigan advocated for were left out of the final FY 2027 budget:
- EV Charger and Fleet Funding: Clean Fuels Michigan pushed for additional dollars for EGLE’s Clean Fuel and Charging Infrastructure program, along with targeted incentives to help fleets procure EVs.
- EV Fee Correction: Senate Bill 593, introduced in fall 2025, would have adjusted Michigan’s EV registration fee to correct for a $100 annual fee increase that took effect in January.
- Sustainable Aviation Fuel Incentives: Enabling legislation for SAF production and use incentives passed the Senate and the House Transportation Committee with bipartisan support.
- Geologic Hydrogen: Governor Whitmer’s January executive directive ordered state agencies to study the feasibility of geologic hydrogen in Michigan, with departments delivering reports to her office this spring. Even so, the budget included no appropriation to fund next steps or further enable geologic hydrogen development in the state.
Looking Ahead
This year’s budget reflects the fiscal reality facing Michigan: less revenue, less federal support, and a legislature focused on trimming costs. Even so, lawmakers found room to support workforce training, maritime investment, EV charging grants, and state offices that help businesses, workers, and communities navigate the shift to clean mobility. Clean Fuels Michigan will continue to advocate for the programs left on the table, such as EV charging and fleet incentives, EV fee fairness, SAF incentives, and geologic hydrogen, as budget conversations continue into FY 2028.
Clean Fuels Michigan members can access a detailed budget brief that includes boilerplate and additional details on each program.