A Republican-controlled Michigan House budget committee used a rarely invoked provision of state law last week to cancel nearly $645 million in previously approved but unspent state project funding, sending much of the money back to the general fund. The move, which affected programs backed by Democratic Governor Gretchen Whitmer, has drawn sharp criticism from Democrats, who called the cuts cruel, while Republicans defended them as necessary oversight and fiscal restraint.
Last week, the Republican-led Michigan House Appropriations Committee used an obscure provision of the state Management and Budget Act to disapprove work project funding requests totaling about $645 million, effectively canceling the unspent money and returning a large share of it to the state’s general fund.
Under the law, if money approved in a prior budget year is not spent, the State Budget Office can request that it be carried forward as a “work project.” If the House and Senate budget committees do nothing, the funding typically continues. But the statute also allows either chamber’s appropriations committee, acting alone, to explicitly disapprove the requests, which sends the money back to state coffers. That rarely used authority had been invoked little, if ever, in the 40 years since the law was adopted, according to reporting from Bridge Michigan and other outlets.
House Speaker Matt Hall, a Republican from Richland Township, has argued that agencies have been “squirreling away” unspent dollars into what he and other Republicans describe as “slush funds,” and he framed the committee’s action as part of a broader effort to rein in the size of state government and force a new round of negotiations over spending. He has also acknowledged that not every item cut was “waste, fraud and abuse” and suggested that some projects could be restored in a future supplemental budget.
The decision came amid ongoing tensions between the GOP-controlled House and the Democratic-controlled Senate and Governor Gretchen Whitmer’s administration, which had supported many of the affected initiatives and had sought to continue funding for them as work projects. The State Budget Office had requested the carryforwards for the unspent allocations; those requests were blocked in a party-line vote of the House Appropriations Committee, with Republicans in favor and Democrats opposed.
Among the largest targets was the Make It In Michigan Competitiveness Fund, which lost roughly $159 million in competitiveness grants, according to information released by House Democrats and reported by Bridge Michigan and other news organizations. Much of that funding was originally approved in the 2025 budget adopted in 2024, when Democrats held the governorship and both chambers of the Legislature.
Community Enhancement Grants were also hit, with about $102.6 million in those grants canceled. According to Democratic lawmakers, the broader pool of enhancement and related grants had supported a wide range of local and community projects, including cultural institutions and arts organizations. Separate reporting on the state budget process has noted that enhancement grants have been used in recent years to support projects such as stadiums, zoos and electric vehicle charging infrastructure, though detailed line‑by‑line descriptions of each specific project cut were not immediately available when the committee voted.
The list of canceled work projects stretched across state departments and types of programs. According to statements from Democratic legislators, Bridge Michigan reporting, and other local coverage, the cuts included:
- About $18.5 million for RxKids, a prenatal and infant cash‑assistance program that provides support to pregnant women and new mothers, initially launched in Flint and now expanding to other regions.
- Funding for Wigs for Kids and similar programs that provide wigs to people undergoing cancer treatment, with one line item of roughly $56,600 specifically noted in public summaries.
- Approximately $1.3 million in funding for the Office of Global Michigan, which oversees initiatives related to immigration and integration, including services for refugees and other newcomers to the state.
- Grants benefiting cultural and community institutions, such as the Holocaust Memorial Center in Farmington Hills and symphony orchestras.
- A $2.5 million school‑zone traffic‑camera pilot program, along with other infrastructure, workforce and local enhancement grants.
News reports and statements from lawmakers also indicate that some environmental and clean‑energy projects were among those losing funding, including nature centers, park and trail improvements and renewable‑energy‑related initiatives. However, not every specific environmental or clean‑energy program affected has been publicly detailed at the same level as the larger grant line items.
Democrats denounced both the substance and process of the move. They argued that the committee acted with little transparency, saying members were given only minutes to review the extensive list of work projects before the party‑line vote. They also warned that the decision would disrupt services and projects that communities and nonprofit organizations had been counting on, including those serving low‑income families, veterans and children.
State Rep. Will Snyder, a Democrat from Muskegon, questioned whether canceling the work projects might run afoul of contracts the state had entered into with outside organizations, although House Republican leaders argued that most contracts contained provisions allowing them to be voided if the Legislature rescinded the funding.
Senate Majority Leader Winnie Brinks, a Democrat, issued some of the strongest criticism, saying in a widely quoted statement that “there’s a special place in hell for someone willing to yank money away from moms and babies 15 days before Christmas.” She and other Democratic leaders in the Senate signaled they would explore possible legal or legislative responses, while also emphasizing that the Senate had not been given a say in the decision.
Republicans, for their part, have characterized the maneuver as lawful and overdue oversight of unspent appropriations, pointing to the statutory authority that allows either chamber’s budget committee to disapprove work project requests. House Appropriations Chair Ann Bollin said reviewing and, when necessary, canceling old projects is part of the Legislature’s responsibility and should not come as a surprise to state departments.
While about $351 million of the canceled work project funding is expected to flow back into the general fund for potential reallocation in future budgets, an additional portion tied to federal or dedicated revenue streams may be more difficult to restore, according to Bridge Michigan and other analyses. Both parties acknowledge that some of the affected programs could eventually receive new appropriations through supplemental spending bills if lawmakers reach agreement on which projects to revive and at what funding levels.
