Michigan’s Republican-controlled House Appropriations Committee has introduced a higher education budget that dramatically reconfigures funding for the state’s public universities. Behind the numbers lies a sweeping attempt to reshape the role of public institutions, both fiscally and ideologically, with harsh penalties for elite universities, restrictions on diversity programming, and mandates that reflect the national right-wing culture war playbook.
At the center of the controversy are the University of Michigan and Michigan State University—flagship institutions with global reputations and sizable endowments. While these universities have contributed to Michigan’s prestige and research profile, critics—including Republicans in the legislature—accuse them of abandoning their public mission by favoring out-of-state and international students over Michigan residents. This shift, driven in part by the pursuit of higher tuition revenues, has fueled resentment in communities that see their tax dollars supporting institutions that are increasingly inaccessible to their own children.
The proposed budget slashes operational funding for universities by $828.1 million, while offering a modest 3.3% increase to the overall higher education budget through one-time funding. But those topline figures mask an aggressive redistribution of funds and a punitive new framework targeting institutions based on their financial assets and adherence to partisan values.
The University of Michigan, with an endowment exceeding $10 billion, would see a 75% reduction in state appropriations under the new formula. Michigan State University, with an endowment between $1 billion and $5 billion, would face a 50% cut. House Republicans argue that these universities have received more than their fair share for too long and that the money should be redirected to the state’s 13 other public universities. State Rep. Gregg Markkanen (R-Hancock), who chairs the House Appropriations Subcommittee on Higher Education and Community Colleges, said the plan was about fairness—"trimming the fat" from elite campuses and investing in institutions that serve more Michigan students.
But the budget goes further than just redistributing funds. It imposes a maze of ideological requirements on public universities, with financial penalties tied to compliance. Schools that allow transgender women to participate in women’s sports would forfeit 5% of their investment funds. Institutions that host events or provide campus spaces limited by sex or race would be similarly penalized. Universities would also be required to comply with the U.S. Supreme Court’s decision banning race-conscious admissions policies—or risk losing 25% of their state funding—even though Michigan voters banned affirmative action in 2006.
Additional boilerplate language requires universities to submit detailed data to the state, including information about the number and citizenship status of international students, the residency status of all enrollees, and the contact information for undocumented students. The budget also enforces a cap on tuition increases and investment fund growth, effectively restricting financial flexibility even as institutions face rising costs.
While some Republicans have framed these measures as a way to support in-state students and force elite universities to serve the public more equitably, critics see a Trojan horse for ideological control. State Rep. Matt Maddock (R-Milford) openly celebrated the plan as a means of cutting off “woke” universities and rewarding “non-woke” ones.
Dan Hurley, CEO of the Michigan Association of State Universities, expressed deep concern about the unpredictability of the proposed funding structure and its long-term viability. The reliance on one-time funding, coupled with sweeping operational restrictions, raises serious questions about how universities will be able to maintain programming, faculty, and student support services. “We need to have a much better understanding of what the thinking is, what the plan is to maintain a healthy, vibrant public university ecosystem,” Hurley said.
The budget also appears to stand on shaky legal ground. Provisions targeting transgender students and undocumented individuals may violate Michigan’s Elliott-Larsen Civil Rights Act, which protects against discrimination based on gender identity and sexual orientation. But when asked about these contradictions, Rep. Ann Bollin (R-Brighton), chair of the Appropriations Committee, brushed aside concerns, instead reiterating culture war talking points. “We don’t want to see boys in girls’ sports,” she said. “That’s universal.”
Bollin also defended the endowment penalties and cuts to DEI programming by saying universities should “mind their budgets just like the rest of us.” Yet universities operate at a far different scale and purpose—serving tens of thousands of students, conducting state-funded research, training medical professionals, and contributing billions to Michigan’s economy. Demanding they operate like small businesses ignores these fundamental differences.
Underlying all of this is a deepening divide over the mission of public universities. Are they to be engines of opportunity for in-state students, regardless of background? Or should they serve as prestige institutions chasing out-of-state dollars and global rankings? In recent decades, both the University of Michigan and Michigan State have increased their enrollment of non-resident and international students, often to compensate for decades of stagnant or declining state funding. That trend has made them less accessible to working-class Michigan families—one of the very grievances now being weaponized in the House GOP’s budget.
But rather than increasing support for access or reducing tuition, the budget offers a punitive and highly politicized approach that undermines the autonomy and inclusive mission of higher education. With negotiations now moving to the Michigan Senate and the governor’s office, public universities face an uncertain future—not only in terms of funding, but in how deeply political agendas will be allowed to infiltrate academic life.
If passed in its current form, the budget may not just reshape Michigan’s higher education system—it could become a model for similar efforts in other states. The fight in Michigan, in other words, is not just about dollars. It’s about who public universities are for—and who gets to decide.
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