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Whitmer's proposed 2025 budget pitches $85M in EV subsidies

Whitmer also proposed up to a $2,500 subsidy for union-made EVs that would total allocate $25 million to fund the MI Vehicle Rebate program.

Published: February 12, 2024 6:30pm

(The Center Square) -

Gov. Gretchen Whitmer’s proposed 2025 budget includes $85 million in electric vehicle subsidies and charging networks.

The $80.7 billion budget proposes $25 million for EV charging station expansion at multi-family complexes and commercial parking lots, $20 million to transition government fleets to EVs and hydrogen vehicles, and $10 million to support the state’s transition from internal combustion engines to EVs and renewable energy.

The fiscal year 2025 budget includes $5 million for the Community and Worker Economic Transition Office.

Whitmer also proposed up to a $2,500 subsidy for union-made EVs that would total allocate $25 million to fund the MI Vehicle Rebate program.

About 34,380 EVs are registered statewide, about 1.9 million short of Michigan’s climate goal of 2 million EVs by 2030.

The budget suggests spending $2 million to electrify the state’s roughly 8,000-vehicle fleet by 2040.

Whitmer says this spending will speed the state toward the 2040 clean energy goal. However, many consumers don’t want to buy EVs because of range anxiety, a sparse charging network, and a higher upfront cost.

Michigan is trailing Illinois and Minnesota in the Midwest race to register the most electric vehicles. Illinois leads with nearly 80,000 EVs, while Minnesota has 41,417.

Michigan is transitioning government vehicles, school buses, and more to EVs in an attempt to reduce carbon emissions and reduce long-term maintenance costs.

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