Michigan Democrats drop $25M EV subsidy

Michigan Democrats are dropping priorities named in Gov. Gretchen Whitmer’s 2025 budget.

Whitmer proposed a paid Family and Medical Leave program, $37.5 million for the Caring for MI Family Tax Credit, a $5,000 tax credit for families caring for an aging or sick relative, and $25 million for the MI Vehicle Rebate, offering up to $2,500 subsidy for a union-made EV.

Amber McCann, spokeswoman for House Speaker Joe Tate, D-Detroit, told The Center Square the Treasury budget doesn’t include the EV subsidy.

“The budget for Treasury that was advanced by the House via the committee process did not include the $25m electric vehicle subsidy as found in the executive budget recommendation,” McCann wrote in an email. “As far as I know, the House budget also does not reflect a policy change on landfill fees.”

Michigan wants 2 million EVs on roads by 2030 but is 1.9 million behind. Of Midwest states, Michigan is third in EV registration behind Illinois and Minnesota.

"MI Vehicle Rebate will save you money on your new car as you walk out of the dealership with your keys," Whitmer said in a statement. "Michigan’s auto industry is the backbone of our economy, and this year, the hardworking men and women of the UAW and our world-leading automakers negotiated and ratified a record contract.”

Whitmer’s budget pitched a 1,288% landfill trash fee tax hike to raise $80 million to remediate contaminated orphan sites statewide.

Mike Alaimo, Michigan Chamber of Commerce director of environmental and energy affairs, said that the House and Senate “decided not to fund the trash tax proposal, but did include a line item for the program to keep the door open for discussion,” Alaimo wrote in an email. “The chamber and the coalition of stakeholders we have built to push back and oppose this concept will continue to monitor the situation.”

Alaimo said the new fee could have increased the waste management cost of local schools up to $300,000 per year.

Democrats regained a political trifecta but the programs are absent from the bills moving closer to becoming law.