A look at the Biden administration’s investments in Michigan

June 23, 2024

Editor’s note: Alec Hughes is a former Daily staff writer. Hughes did not contribute to this article.

Earlier this month, Governor Gretchen Whitmer traveled to Washington, DC, to advocate for possible additional federal investment in Michigan from the Biden-Harris administration. Specifically, Whitmer discussed the Unmanned Triple Challenge drone innovation competition with the U.S. Department of Defense and the possible designation of the Keweenaw Peninsula as a National Heritage Area with the Department of the Interior. During Biden’s tenure, Whitmer and administration officials discussed and secured funding for Michigan, and that continues to this day.

Biden’s Investing in America program is a combination of private and public financial contributions, legislation and mobilization. The program aims to support and fund a variety of projects across the country aimed at increasing manufacturing, creating additional jobs and repairing infrastructure. As of May, Investing in America has announced $28 billion in private and $12.8 billion in public funding for Michigan. In a June 4 statement, Whitmer said she would continue to advocate for additional funding for the state.

“Michigan is competing for every federal resource and dollar so we can build on our economic momentum, including the more than $12.4 billion in direct investment the Biden-Harris administration has already made to our state,” Whitmer wrote. “I look forward to working with allies in our congressional delegation and my Cabinet to attract more investment, create more jobs and revitalize more Michigan communities.”

The bipartisan infrastructure bill passed in November 2021 allocates $1.2 trillion for transportation and infrastructure, of which $550 billion is earmarked for capital expenditures. Under the BIL, the administration plans to provide Michigan with $10.7 billion in public funds for roads, high-speed internet, clean water and other infrastructure projects.

Of the state’s BIL funds, $6.8 billion is devoted to transportation. Whitmer, who campaigned for governor in 2018 on a promise to “fix the damn roads,” continues to issue statements about ongoing transportation infrastructure projects under that slogan.

In an email to The Michigan Daily, two LSA seniors, Alec Hughes and Adam Lacasse, co-chairs of the university’s chapter of College Democrats, said they believe the investments will contribute to infrastructure improvements that the state would not otherwise have been able to fund.

“It’s incredibly beneficial for Michigan – studies have found that a major reason for Michigan’s poor infrastructure grades is a lack of available funding, particularly for roads, to the tune of four to six billion dollars,” Hughes and Lacasse wrote. “The funding from federal legislation, particularly the BIL and the (Inflation Reduction Act), goes a long way toward closing that gap, and we’re already seeing the impact today. Highway and bridge repairs are underway across the state.”

Michigan has raised $26.8 billion in private funding for clean energy, including $23.9 billion for electric vehicles and batteries. Under the administration, companies like General Motors and Ford have pledged to build multibillion-dollar manufacturing facilities in the state. Despite the initial investment, construction of many of these facilities has been delayed, leading to setbacks and fewer jobs.

During her trip to Washington DC in June, Whitmer spoke at CNBC’s CEO Council Summit about the importance of the electric vehicle industry in the state. The governor said investments in the area would encourage job creation and boost manufacturing.

“For the first time in a long time, we have a real strategy to rebuild manufacturing in this country,” Whitmer said. “We saw during the pandemic how bad it was on so many fronts, not just in terms of jobs but also in terms of homeland security. We need manufacturing growth in this country, and that’s happening with a sustained and real focus.”

In an interview with The Daily, Akil Kasubhai, a junior at LSA and state-level political director of the Michigan College Democrats and co-president of the UM Undergraduate Political Science Association, said promoting the electric vehicle industry through subsidies will have positive environmental and economic impacts on the state, especially because Michigan is a Rust Belt state trying to revitalize its automotive industry.

“Investing in clean energy is a very promising sector,” Kasubhai said. “It’s a real economic multiplier … you’re creating jobs, you’re helping the environment and you’re putting Michigan back on the map for manufacturing at the federal level as well, which I think is great for a lot of people here.”

As of March, Michigan has received $71.2 million to build electric vehicle charging stations across the state, with a total of $110 million expected over the next five years.

In addition to clean energy projects, funds for clean water in the state were also announced. The Environmental Protection Agency pledged $142 million to replace toxic lead pipes, and $204.4 million of the $748.1 million in BIL clean water funds are also earmarked for pipe replacement. Hughes and Lacasse wrote that these investments will correct Michigan’s troubled history when it comes to water quality.

“Replacing lead pipes has long been an issue, as the Flint water crisis made clear, and work is now underway to ensure that such a crisis never happens again,” Hughes and Lacasse wrote. “Tens of thousands of jobs will also be created, further fueling the state’s economic growth. All of these investments will make Michigan safer and more welcoming.”

Government funding initiatives have also supported technological advancements. The CHIPS and Science Act, passed in August 2022, is contributing to investments in technology, particularly in the semiconductor industry. $756.2 million in private funding was announced for Michigan’s semiconductor industry, and $2.2 billion in BIL funding was allocated for high-speed internet.

In addition to numerous infrastructure investments, the Biden administration has also helped lower the cost of living for various segments of Michigan’s population. Approximately 82,700 residents were approved for student debt forgiveness totaling $4.2 billion. In addition, $211.2 million was allocated to reduce residential energy costs, and Michigan residents also benefited from initiatives to reduce health insurance and prescription drug costs.

Biden will represent the Democratic Party in the presidential election in November, and his administration’s engagement in Michigan could influence voters’ decisions, especially given Michigan’s status as a swing state that would play an important role in a statistically close election.

Hughes and Lacasse said Biden’s investments would encourage Michigan residents to vote Democrat in November.

“By November, we believe voters will see how Democrats ‘fixed the damn roads,’ how Democrats passed the largest climate change reduction bill in world history, how Democrats are the only ones proposing real solutions to real problems, and that’s why they’ll vote Democrat,” Hughes and Lacasse wrote.

Kasubhai said the slow implementation of the government’s investments and the individual views of individuals could make it difficult for Biden to take responsibility for improvements.

“Political scientists have found whether people’s material and economic self-interest play a big role,” Kasubhai said. “If you get the job under the Biden administration and you get all these resources, does that change whether you would vote for him? It has a lot to do with entitlement. Do you say the executive branch did it? Or do you think it was your local Republican congressman, for example? So those are interesting questions about who gets the credit for the benefits of investment.”

Summer News Editor Marissa Corsi can be reached at [email protected].