The Michigan State Capitol in Lansing

Michigan's Dangerous Funding Freeze and Clean Energy Rollbacks Puts Reliability, Affordability, and Essential Services at Risk

Published on December 12, 2025

LANSING, MI — The Michigan Energy, Michigan Jobs coalition responded today to a series of moves by Republican lawmakers that threaten to roll back Michigan’s progress on clean energy, affordability, and community resilience. Speaker Matt Hall’s sudden halt of $645 million in already approved state funding, a maneuver used only once before in Michigan’s history, is now paired with legislative efforts to weaken the state’s clean energy laws. These actions would raise costs for families, undermine grid reliability, harm human health, and stall projects that residents across Michigan depend on. 

The funding freeze blocks critical dollars for grid upgrades, solar and storage expansion, weatherization, and clean energy programs that lower costs for rural communities, low-income neighborhoods, and Black and Brown communities that already face higher outage frequency and longer restoration times. It also pauses critical food and housing assistance that many families rely on, placing both households and essential infrastructure at immediate risk.

“Clean energy rollbacks have direct health consequences,” said Kathleen Slonager, RN, AE-C, Executive Director of the Asthma and Allergy Foundation of America, Michigan Chapter. “A recent NYU study showed pediatric ER visits for asthma dropped by 41% in the month after a coal facility closed. Extending the operation of similar plants or fossil fuel dependent facilities will reverse that progress by worsening air quality and intensifying climate driven conditions known to trigger asthma attacks and other serious health crises for medically vulnerable residents, including communities across Michigan.”

Clean energy experts and environmental justice advocates warn that stalling these funds will hit the communities already carrying the heaviest burdens including places like Detroit, Benton Harbor, and Flint. Using this provision as a negotiation tactic between lawmakers slows progress on resilience hubs, solar and storage projects, and weatherization efforts that cut energy bills for vulnerable households. It drives up costs for families and businesses already facing rising rates and more frequent outages as extreme weather worsens.

Coalition members said this move also leaves the state’s most impacted residents at greater risk and creates instability for local governments and community organizations that have already budgeted for this approved funding. These organizations are often the frontline responders during outages and emergencies, providing cooling centers, essential supplies, and safety checks to vulnerable residents and seniors. Sudden funding reversals weaken that capacity at a time Michigan communities need it most.

“Michigan cannot afford political maneuvers that make energy more expensive, less reliable, and harder to access,” Denise Keele, Executive Director, Michigan Climate Action Network said. “We urge lawmakers to reject these harmful cuts and ensure that every dollar supporting clean energy, community infrastructure, and essential household needs is restored.”

This setback comes alongside the attempts to weaken Michigan’s clean energy progress through House bills HB 4007 and HB 4283 and Senate bill SB 727. These proposals would grant unnecessary extensions to a RICE generator in the Upper Peninsula and broaden the definition of “clean energy” to include methane gas generators. Together, the bills would shift costs from a major industrial user onto families and small businesses and undermine the clean energy law that is already delivering more affordable, reliable power.

Members of the coalition plan to work closely with legislative leaders to defend the state’s progress on affordability, grid modernization, and a cleaner, more reliable energy future. They point to the growing push to roll back Michigan’s clean energy laws and advance proposals as part of a broader effort that would make energy more expensive, less reliable, and undermine the progress the state has already made.

“Families should not be collateral damage in a political power struggle,” said Alexis Blizman, Policy Director, Ecology Center. “Michigan leaders must protect the programs that keep the lights on, put food on the table, and safeguard the health of communities where asthma and respiratory problems are high. Gutting these investments will drive up energy costs, weaken reliability, and leave households even more vulnerable at a time when they can least afford it.”

“We cannot afford to undermine the bipartisan progress we’ve made toward stronger stewardship and resilience”, said Zoe Zeerip, Program Coordinator for the Great Lakes Business Network. “Slashing investment in climate mitigation and clean energy adoption hurts our economy and environment. In order to address the climate crisis, protect our environment, and build a resilient future for our business communities, we must protect investments in clean energy.”

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The Ecology Center is a member of the Michigan Energy, Michigan Jobs coalition. 

Michigan Energy, Michigan Jobs is a coalition of business leaders, clean energy companies, consumer advocates, and community organizations working to secure affordable, reliable, equitable energy access while creating jobs and investment across Michigan.