What a difference a year (and a political leadership change) makes.
At this time in 2024, Michigan was expecting a windfall of federal funds to fuel a transition to clean energy, along with billions of dollars’ worth of green manufacturing projects subsidized by the Biden administration’s signature climate spending bills.
But since President Donald Trump began his second term in January and began scrapping federal climate programs he refers to collectively as “the green new scam,” Michigan has seen a wave of project and grant cancellations, along with renewed investment in fossil fuel-based manufacturing and power generation.
Roughly $540 million in climate-related grants to Michigan have been canceled or held up since Inauguration Day, according to a national database compiled by Atlas Public Policy, while shifting market forces and the end of federal tax credits for electric vehicles have caused clean manufacturing investments in Michigan to whipsaw from billions annually in recent years to $3 billion in canceled investments this year.
“It certainly mirrors what we’re seeing nationally,” said Annabelle Rosser, a research analyst with the national firm.
Instead, Michigan automakers are scaling back and refocusing on gas and hybrid vehicle production — a trend emblemized by Ford’s and General Motors’ recent decisions to scrap EV production plans at Michigan plants and retool to produce gas-powered vehicles.
“That’s just the way the market is shaking out right now,” said Glenn Stevens, executive director of MichAuto, an affiliate of the Detroit Regional Chamber.
It’s a trend likely to continue into 2026, as Trump administration officials continue their efforts to downplay climate change, deemphasize renewable energy and embrace fossil fuels.
Here’s where things stand in Michigan as the year draws to a close:
$540 million in canceled funding
Michigan has seen $540 million in canceled funding, with the biggest chunk coming from the Solar for All Program, a $7 billion US Environmental Protection Agency fund meant to expand solar energy in disadvantaged communities.
Michigan had been slated to receive a $156 million grant through that fund, while Native American tribes in the state were expecting part of a $62 million grant shared with other Great Lakes tribes.
Michigan Attorney General Dana Nessel has sued over the grant cancellations, joining 22 other states to argue the administration “unilaterally and illegally terminated” the program, overstepping checks and balances to cancel congressionally approved funding.
Beyond the solar program, the federal government has canceled or proposed to cancel more than 20 Michigan grants ranging from $31.7 million to help LuxWall Inc. build an energy-efficient window glass factory in Detroit to $14,000 for a west Michigan climate resilience project.
Other canceled grants include:
1. $28.2 million for TS Conductor to build a high-capacity power line plant in Erie
2. $20.4 million for Ecoworks, a Detroit nonprofit that planned to convert houses of worship into climate resilience hubs
3.