Michigan House Republicans Propose Drastic Funding Cuts to UM, MSU

LANSING, Mich. — Michigan House Republicans unveiled a $2.4 billion higher education budget on Wednesday that would slash state funding for the University of Michigan and Michigan State University by approximately $300 million annually, targeting their large endowments and out-of-state student enrollments. The proposal, which advanced out of the House Appropriations Committee along party lines, has sparked sharp criticism from Democrats and university officials.

Under the plan, the University of Michigan's Ann Arbor campus would face a $335 million reduction in state aid, a 91.6% cut from current levels, while Michigan State University would see a $237.4 million decrease, equating to a 73% reduction. The House Fiscal Agency reports that the net reductions, after accounting for scholarship reallocations, would amount to $239 million for UM and $62 million for MSU.

State Rep. Greg Markkanen, R-Hancock, chair of the House Higher Education and Community Colleges budget committee, defended the cuts, stating, "Michigan's largest universities have been getting way more than their fair share for far too long. Our plan sets things right by trimming the fat off MSU and U of M and distributing that funding amongst our 13 other remarkable universities."

The proposal redistributes funds to Michigan's 13 other public universities, with institutions like Wayne State University potentially seeing a 28% increase in state aid, and others up to 31%. The budget divides the $1.6 billion in current university funding into two pots: campus investment funds for infrastructure and technology, and scholarship money for in-state students. However, critics argue the $272.4 million in scholarship aid primarily offsets student costs and does little to mitigate the universities' operational losses.

"A budget reduction of the scale proposed by the House would hinder our ability to deliver the high-quality, affordable education that Michigan students expect and deserve," said Amber McCann, MSU spokesperson. "We are proud of the role MSU plays in driving Michigan's future — and we believe the state budget should reflect that value, not diminish it."

Chris Kolb, UM's vice president for government relations, called the proposed cut "deeply disappointing," emphasizing that "U-M contributes a 24-to-1 return on investment to Michigan's economy, ranks No. 1 nationally in both degree value and research volume and educates tens of thousands of students from every one of Michigan's 83 counties." He warned that "a cut of this magnitude would undermine that success and sends the wrong message about what the state values."

The budget also imposes restrictions, withholding funding from universities that maintain diversity, equity, and inclusion (DEI) programs, allow transgender women to compete in women's sports, or fail to verify students' legal residency status. Additionally, it caps administrative spending at 10% of salary budgets and penalizes universities raising tuition beyond 3% or $489 annually.

State Rep. Matt Maddock, R-Milford, framed the cuts as targeting "woke" universities, saying, "We're making cuts to the woke universities and giving it to the non-woke universities or the less woke universities."

House Democrats condemned the proposal. "Seems like they're letting DC rhetoric stomp on Midwest values," said state Rep. Alabas Farhat, D-Dearborn. "If you are a student or a parent of someone who attends any university in the state of Michigan, you should understand that House Republicans do not care about you."

The plan faces significant hurdles in the Democratic-controlled Senate, which passed a budget in April increasing university funding. With negotiations ongoing, the budget must be finalized by Oct. 1 for the 2025-26 fiscal year. University leaders warn that the cuts, combined with recent federal research funding reductions, could jeopardize academic programs and economic contributions.

Rep. Samantha Steckloff, D-Farmington Hills, questioned the budget's projections, noting "huge discrepancies" in expected scholarship revenue for universities like Michigan Tech and Wayne State. "The math is not adding up," she said during the committee hearing.

The proposal comes amid broader financial challenges for UM and MSU, which are already adjusting budgets due to federal cuts to agencies like the National Institutes of Health and the Department of Energy. MSU President Kevin Guskiewicz recently warned of "hard decisions" ahead, while UM has implemented hiring and spending reviews to brace for further reductions.

As the budget battle unfolds, Michigan's flagship universities face an uncertain future, with potential impacts on students, faculty, and the state's economy hanging in the balance.