House Advances Budget Out Of Subcommittee Slashing MSU, U-M By 63%, Shifts Funds To Scholarships

(Source: MIRS.news, Published 04/16/2026) The House higher education budget advancing out of the Appropriations Subcommittee Thursday morning would cut funding for Michigan State University and University of Michigan by roughly 63%, redirecting much of the savings toward student scholarship programs.

The proposal, HB 5618, includes a $174.9 million overall reduction to higher education spending, with a $470.6 million drop in university operations. That includes cuts of $199 million for MSU and $222.3 million for U-M, while boosting funding for scholarship programs like the Michigan Achievement Scholarship.

During his press conference Thursday, House Speaker Matt Hall (R-Richland Township) said both schools had “lost their way." The University of Michigan is not accepting as many Michigan students as they could and Michigan State University for helping facilitate the Rx Kids program, which Hall called a “scam." He believes the new mothers receiving benefits from RxKids are using taxpayer money to buy drugs and alcohol.

During the subcommittee meeting, Rep. Matt Longjohn (D-Portage) questioned the deletion of boilerplate language tied to Michigan State University programs, including Project GREEEN and the Agricultural Climate Resiliency Program. The removed sections had directed $5.6 million from AgBioResearch and Extension funding and allowed support for climate-focused agricultural work. Longjohn pointed to recent dam failures and severe weather as a reason to reconsider the changes.

He and Rep. Julie Rogers (D-Kalamazoo) also questioned the justification behind the steep cuts to the universities, adding that they're "tremendous assets to the state,” looking for any specific performance metrics. Chair Greg Markkanen (R-Hancock) indicated he would speak later on to discuss these changes.

MSU's spokesperson, Amber McCann, said that the drastic cuts are a direct hit to their thousands of students. Reducing investments in institutions like theirs undermines the success of their students and risks Michigan's long-term economic strength. She added that the university educates nearly 51,000 students, including the largest number of in-state residents, and “is a major engine for workforce development, research, and innovation.”

“We urge House lawmakers to reconsider this approach and adopt a funding strategy that reflects both equity and impact across the state’s higher education system,” McCann said.

Chris Kolb, the Vice President for Government Relations at U-M, echoed those same sentiments, emphasizing the economic impact the university brings for Michigan and urging the House to reconsider the cuts.

“This is a shortsighted and harmful approach at a time when Michigan should be investing in students, workforce talent, and economic growth—not pulling back,” he said. "Cuts of this magnitude would have real consequences for tens of thousands of students, including making it harder to keep U-M tuition affordable, and could impact around 68,000 jobs supported directly by our two flagship public universities."

The higher education plan was part of a broader budget package approved along party lines, including separate bills for the Department of Lifelong Education, Advancement, and Potential (MILEAP) and community colleges.

HB 5617 would reduce community college funding by $1.9 million overall, though it's described as roughly a 1% net increase when accounting for shifts in base funding. The apparent decrease is largely driven by the removal of one-time appropriations included in the current fiscal year, resulting in about a 3% drop when comparing year-to-year totals.

HB 5611 cuts nearly 5% from MILEAP, with reductions spread across multiple programs. Democrats raised concerns about cuts to child care licensing and regulation, early childhood programs and oversight capacity, warning they could impact health and safety monitoring at a time of rising measles cases.

All three budget bills now head to the House Appropriations Committee for consideration.