Proposed U-M Funding Cut Raises Local Economic Questions

A Michigan House budget plan would cut more than $200 million from the University of Michigan’s state funding, raising questions about tuition, jobs and the university’s role in Washtenaw County’s economy.

The Republican-led House approved the education budget plan April 23 as part of House Bill 5630, a broad spending bill covering K-12 schools, higher education and community colleges. The plan would reduce funding for U-M and Michigan State University by a combined 62%, according to a House Fiscal Agency summary of the House-passed bill. The reduction would amount to about $222.3 million for U-M and $199 million for MSU.

The plan is not the final state budget. It still must be negotiated with the Senate and Gov. Gretchen Whitmer before any budget is signed into law.

U-M officials pushed back after the House subcommittee advanced the proposal. In a statement sent to The Sun Times News, Chris Kolb, U-M’s vice president for government relations, said the university strongly opposes the recommendation, calling it “a shortsighted and harmful approach at a time when Michigan should be investing in students, workforce talent, and economic growth, not pulling back.”

Kolb said cuts of that size could make it harder to keep U-M tuition affordable and could affect about 68,000 jobs supported directly by U-M and MSU.

State Sen. Jeff Irwin, D-Ann Arbor, said he views the House plan as an opening bargaining position, not a final budget. He said similar higher education cuts have surfaced during past budget talks before being scaled back.

Irwin said U-M is deeply tied to the local economy as both an employer and a research institution.

“Look at how many families here are employed by U-M or have students there,” Irwin said. “Not to mention the lifesaving drugs and procedures.”

A new county forecast also points to the local weight of higher education and public institutions. The April 2026 Washtenaw County Economic Outlook said private higher-education service industries and government made up roughly 70% of the county’s gross domestic product in 2024. The report said government includes public institutions such as U-M and Eastern Michigan University.

The issue comes as families are already weighing college costs. U-M lists 2025-26 tuition and fees for lower-division in-state students in the College of Literature, Science, and the Arts at $18,346. For out-of-state lower-division students, tuition and fees are listed at $63,962.

Because the budget is still under negotiation, the final numbers could change before the next state budget is approved.