MPPS Policy Brief: Many Michigan communities concerned about the loss of federal and state funding, but uncertain how to prepare
This policy brief presents the assessments of local government leaders from around the state regarding whether the winding down of funds from sources such as ARPA, Infrastructure Investment and Jobs Act (IIJA), Inflation Reduction Act (IRA), or other federal support for services will affect their governments’ fiscal health over the next five years. These findings are based on statewide surveys of local government leaders in the Spring 2025 wave of the Michigan Public Policy Survey (MPPS).
Key findings
- Statewide, 40% of Michigan local government officials believe the loss or pause of at least one type of federal or state funding source will be a problem for their jurisdiction’s fiscal health. This includes 72% of cities, 68% of counties, 46% of villages, and 30% of townships.
- As of Spring 2025, most Michigan local governments (60%) say they are not currently preparing for a loss of state or federal funding. Counties (57%) and cities (49%) are more likely to say they are preparing. However, substantial majorities of villages (59%) and townships (66%) say they are not currently preparing. Some of this lack of preparation may be due to low levels of concern about the impacts of such a loss of funding. However, even among jurisdictions that say that the end or pause of one or more types of funding would be a somewhat or significant problem, 44% are not currently preparing for the loss of federal or state funding.
