Michigan sees sharp decline in climate investment

Political News & Notes is a weekly look at what is happening in Lansing and around the state.

Michigan has experienced a dramatic pullback in climate-related funding and clean energy investment during President Donald Trump’s first year back in office, reversing momentum built under the Biden administration’s climate and manufacturing initiatives.

The shift reflects sweeping federal policy changes that have canceled or stalled hundreds of millions of dollars in grants and contributed to billions more in private-sector disinvestment tied to renewable energy and electric vehicle production.

Data from Atlas Public Policy, cited by Bridge Michigan, shows that approximately $540 million in climate-related grants earmarked for Michigan have been canceled or frozen since Trump took office in January. Among the most significant losses is a $156 million grant from the Environmental Protection Agency’s Solar for All program, which was intended to expand access to renewable energy in disadvantaged communities across the state. Native American tribes in Michigan were also poised to benefit from a regional grant totaling $62 million before the funding was cut.

Michigan Attorney General Dana Nessel has joined lawsuits with more than 20 other states, arguing that the Trump administration unlawfully terminated congressionally approved funding and bypassed constitutional checks and balances.

Beyond the solar program, Bridge Michigan reports that more than 20 additional grants have been canceled or proposed for cancellation, including funding for energy-efficient housing, climate resilience hubs, power-line manufacturing, window-glass production in Detroit, and energy upgrades in tribal communities.

The impact extends well beyond public funding. Michigan’s clean manufacturing sector, once buoyed by federal subsidies and electric vehicle incentives, has seen a sharp downturn.

After announcing nearly $24 billion in green manufacturing investments between 2022 and 2024, Michigan recorded $3 billion in canceled or withdrawn projects in 2025 alone, according to Atlas. Automakers and suppliers have scaled back or abandoned electric vehicle and battery production plans as federal EV tax credits were rolled back and emissions standards loosened.

High-profile setbacks include the cancellation of the $2.4 billion Gotion battery plant near Big Rapids, the closure of facilities by battery maker XALT Energy, and Dana Inc.’s decision to shut down an Auburn Hills EV battery plant due to declining demand. Fortescue also abandoned plans for a $210 million EV charger and battery facility in Detroit, citing shifting federal policies.

One notable exception to the administration’s climate rollback is nuclear energy. Bridge Michigan notes that the Trump administration has continued funding to restart and expand the Palisades nuclear power plant, framing nuclear as central to national energy security.

Analysts told Bridge Michigan that Michigan’s experience mirrors national trends. While electric vehicle growth is expected to continue, they say, it will likely proceed at a slower pace than previously projected as fossil fuels regain federal favor.

Gov. Gretchen Whitmer closed out 2025 by signing a package of bipartisan legislation following a flurry of last-minute votes in Michigan’s divided Legislature.

While the year was marked by gridlock and historically low legislative output, according to the Detroit Free Press, Whitmer approved 36 bills in late December, framing the signings as evidence that lawmakers from both parties could still find common ground.

With Republicans controlling the House and Democrats holding the Senate, Whitmer has emphasized collaboration as a governing strategy. In announcing the signings, she said the new laws aim to lower costs, improve safety, protect consumers and reduce regulatory barriers for families and small businesses.

Among the measures signed were bills allowing child care centers to install temporary door-locking devices without violating fire codes. Supporters said the change gives child care providers access to safety tools already used in schools during emergencies or intruder situations.

Whitmer also signed legislation extending the timeline to resurvey the Michigan–Indiana border, last surveyed in 1827. The new law allows the Michigan-Indiana State Line Commission to fund county survey efforts, addressing concerns that deteriorating markers have created uncertainty about the precise boundary.

Several laws addressed alcohol regulations. Michigan breweries can now sell nonalcoholic beer purchased from wholesalers in their tasting rooms. Other changes allow the state Liquor Control Commission to issue alcohol licenses at certain community colleges, including Macomb and Wayne County Community College, and permit alcohol sales at new campus-adjacent retail developments.

Education-related bills included legislation directing the Department of Education and Department of Natural Resources to develop optional firearm safety instruction for middle and high school students. The curriculum will be voluntary, and no real firearms will be used.

Whitmer also approved updates to cottage food laws, doubling the annual sales cap to $50,000 and creating a higher $75,000 cap for high-priced items. The law allows online sales and delivery services and raises exemptions for honey and maple syrup producers.

Additional measures strengthened First Amendment protections by limiting so-called SLAPP lawsuits and increased penalties for racial discrimination in life insurance policies, removing outdated language from state law.

A lawsuit unsealed as part of the federal government’s release of thousands of Jeffrey Epstein–related records alleges that the late financier first encountered one of his earliest known victims at Interlochen Center for the Arts, located near Traverse City. in the 1990s. 

The complaint, filed in 2020 on behalf of a woman identified as Jane Doe, states that Epstein and longtime associate Ghislaine Maxwell met the girl when she was 13 at Interlochen, The Detroit News reported.

The lawsuit, which was settled in 2021 through the Epstein Victims’ Compensation Program, describes a pattern of grooming, financial manipulation and sexual abuse that allegedly began shortly after the initial encounter.

According to the complaint, Epstein approached Doe at the camp in 1994 while she was between music classes, presenting himself as a patron of the arts and asking detailed questions about her family and background. Doe alleged she felt intimidated into providing her mother’s contact information.

The lawsuit claims Epstein and Maxwell gradually inserted themselves into Doe’s life, offering mentorship and financial support that created dependency. Epstein allegedly paid for voice lessons, later insisting Doe could not advance her career without him. 

The alleged abuse escalated months later and continued for several years, including repeated sexual assaults in New York. The lawsuit also recounts an incident at Mar-a-Lago where Epstein allegedly introduced Doe to Donald Trump, then a private club owner, making a remark Doe interpreted as sexualized. Trump has denied wrongdoing in other Epstein-related matters and is not a defendant in the case.

Interlochen officials said no complaints involving Epstein were reported during internal reviews conducted after his 2008 conviction and again following his 2019 arrest. Epstein attended the camp briefly in 1967 and donated to the institution between 1990 and 2003. The school later removed donor recognition tied to his name.

Interlochen said it remains committed to student safety and has implemented extensive safeguards.

 A marijuana trade group is asking the Michigan Court of Appeals to quickly intervene and block a new 24% wholesale tax on marijuana sales that is scheduled to take effect Jan. 1.

The Detroit News reported that the Michigan Cannabis Industry Association filed its appeal this week after a lower court declined to halt implementation of the tax, which is projected to generate about $420 million annually for state road funding.

The wholesale tax was approved in October as part of a broader bipartisan deal on transportation funding reached by the Republican-led House, the Democratic-controlled Senate and Gov. Gretchen Whitmer.

Industry leaders, however, argue the tax violates the intent of the 2018 voter-approved ballot initiative that legalized recreational marijuana and set a 10% excise tax at the retail level.

The association contends that because the new tax amends a voter initiative, it should have required approval from three-quarters of lawmakers in each chamber. Instead, the measure passed with simple majorities—19 of 37 senators and 78 of 110 House members. Rose Tantraphol, a spokesperson for the group, said the industry will continue to fight what it views as an unconstitutional tax that overrides voter intent.

Earlier this month, Michigan Court of Claims Judge Sima Patel rejected an emergency request to block the tax. Patel ruled that the 2018 ballot language allowed for “other taxes,” concluding the industry failed to meet the high standard required for a preliminary injunction.  

In its appeal, the marijuana association urged the Court of Appeals to act before Jan. 1, arguing that delaying review would cause immediate harm. The group warned that businesses would be forced to collect a tax they believe is unlawful, potentially leading to layoffs, higher consumer prices and increased black-market sales.

Michigan recorded $3.2 billion in recreational marijuana sales last year, according to the state Cannabis Regulatory Agency. Industry leaders argue that raising wholesale costs could destabilize a market that voters intended to regulate carefully.

Two Michigan Democrats in Congress are calling for a federal investigation into the death of a man who died while being held by U.S. Immigration and Customs Enforcement (ICE) at a detention facility in Baldwin. 

U.S. Reps. Haley Stevens of Birmingham and Hillary Scholten of Grand Rapids sent a letter this week to Homeland Security Secretary Kristi Noem and Acting ICE Director Todd Lyons seeking answers about the Dec. 15 death of Nenko Gantchev at the North Lake Processing Center in Baldwin.

According to the Michigan Advance, Gantchev, a Bulgarian national, was arrested by ICE on Sept. 23 and was being held pending removal proceedings. ICE said he was found unresponsive in his cell and pronounced dead. The agency has described the death as stemming from “suspected natural causes,” though the official cause remains under investigation.

In their letter, Stevens and Scholten said Gantchev’s death fits into what they called a “deeply troubling pattern” within ICE detention facilities nationwide. They cited ICE data showing at least 30 detainee deaths in 2025, the highest annual total since 2004. Gantchev’s death was the fourth reported in a four-day span earlier this month.

The lawmakers pressed ICE for detailed information, including whether Gantchev received all required medical screenings and care, whether detention staff followed emergency protocols after he was found unresponsive, and whether any complaints about his treatment or the facility’s conditions had been logged. They also asked about staffing levels, medical oversight and population growth at North Lake.

North Lake, which reopened in June after closing in 2022, has rapidly expanded amid stepped-up immigration enforcement. Stevens and Scholten said reports of overcrowding, inadequate medical care and inhumane conditions have accompanied that growth.

The facility is operated by The GEO Group, a private prison company under contract with ICE. It is now the largest ICE detention center in the Midwest and among the largest in the country, and has been the focus of repeated protests.