Michigan Budget Preserves Environmental Funding, Avoids Major Cuts

Michigan budget cuts to EGLE reduced, avoiding major job losses while increasing funding for roads, healthcare, parks.

October 8, 2025

As the clock ticks toward a potential government shutdown, Michigan’s budget proposals reveal a softening stance on environmental program cuts. Governor Gretchen Whitmer is reviewing budget bills that significantly scale back earlier reductions proposed by the GOP-led House.

Environmental Funding Adjustments

The initial House budget threatened a substantial $200 million cut, approximately 19% of the Department of Environment, Great Lakes, and Energy’s (EGLE) funding. However, the current proposal reduces this to a $71 million cut, equivalent to 7% of the agency’s budget, as per the House Fiscal Agency analysis.

The budget plan also allocates an additional $1.1 billion for roads and bridges, along with a slight rise in education funding. A temporary funding measure was enacted recently to stave off a government shutdown until midweek.

State Sen. Stephanie Chang (D-Detroit) expressed satisfaction, noting that the budget retains “a lot of really important priorities and stayed a lot of cuts.”

Legislative Developments

Beyond environmental concerns, the budget benefits sectors such as public transit, healthcare, and natural resources. It removes language that would have weakened PFAS regulations and limited the attorney general’s litigation capabilities against oil and gas firms.

The $81 billion budget, which includes $5 billion from Medicaid provider tax revenue, is slightly smaller than last year’s but exceeds the House Republicans’ $78.5 billion proposal. The Michigan legislature passed the budget with strong bipartisan support, and now it awaits Governor Whitmer’s approval.

Reflecting on past budgetary conflicts, Sen. Jeff Irwin (D-Ann Arbor) emphasized the governor’s need to collaborate with the legislature, despite public perception of executive authority.

In a recent statement, Whitmer lauded the budget as a “big win for Michiganders,” highlighting its balanced and bipartisan nature. However, she has yet to sign it.

EGLE Staffing and Program Funding

According to EGLE spokesperson Dale George, the scaled-back cuts are unlikely to significantly impact staffing or operations. Previously, the House budget threatened 250 job cuts, notably affecting water quality programs. Sen. Irwin noted that only 15 unfilled positions might be affected under the revised budget.

Funding for drinking water affordability was halved from $10 million to $5 million, while restrictive language on PFAS standards and litigation was omitted. A proposed $50 million earmark for a controversial Upper Peninsula mine was also removed, reflecting environmental and Indigenous opposition.

Support for Public Services

The budget also includes increased funding for healthcare and public parks, with the Michigan Health & Hospital Association noting its importance for rural and underserved areas. State parks, including Belle Isle, will receive an $8.6 million increase, aiding maintenance and staffing.

Public transportation funding sees enhancements, with $65 million allocated to expand and improve local bus systems. Environmental groups welcomed investments in renewable energy communities, although there was criticism over increased fees for electric and hybrid vehicles.

Irwin highlighted the potential challenges of shifting certain funds to one-time allocations, warning of possible budgetary issues in the following year due to this strategy.

🗳️ Civic Engagement Opportunities

As Michigan’s new fiscal year began on October 1, the public can engage with the ongoing budget process. Governor Whitmer has until October 8 to finalize the budget and prevent a shutdown.