Current Issues
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State Appropriations
January 2025 - The 103rd Michigan Legislature is now in full swing, and the state budget process is set to begin with Governor Whitmer's proposal for the FY2026 budget. By law, Governor Whitmer must present her budget proposal within 30 days of the Legislature's convening. Following this, each legislative chamber will review, deliberate, and draft their own versions of the budget, leading to negotiations between the chambers.
February 2025 - Governor Whitmer’s Executive Budget Recommendation for fiscal year 2025–26 proposes a 3.1% increase in funding for university operations, including Michigan State University’s General Fund. MSU Extension and AgBioResearch would also receive a 3.0% increase, recognizing their critical roles in research, innovation, and community outreach. The proposal includes a 4.5% tuition restraint cap, encouraging affordability while maintaining support for student success and academic excellence.
May 2025 - Following last week’s Michigan Revenue Estimating Conference, we are currently awaiting the Michigan House of Representatives’ higher education budget recommendations. Both the Governor and the Michigan Senate have released their proposals, which differ in key areas including university operations, MSU Extension, AgBioResearch, and capital outlay. We anticipate the House will introduce its own distinct version, setting the stage for a three-party budget negotiation process to begin in earnest in June. -
Federally Funded Research
Federal research funding at universities drives medical breakthroughs, technological advancements, and groundbreaking discoveries that improve lives, strengthen the economy, and advance to keep America competitive. To achieve these outcomes, the federal government must sustain appropriate federal research funding.
Without federal funding, institutions face an unsustainable financial impact, reducing their capacity to conduct critical research in medicine, engineering, agriculture, education, advanced manufacturing and other high-impact areas. Learn more about MSU's research impacts at our research for you webpage.
Universities like MSU are responsible stewards of public and private investment. Whether funded through federal, state, or industry partnerships, we maximize every dollar to produce meaningful outcomes—from life-saving medical breakthroughs and new technologies to workforce development and community growth. These returns far exceed the initial investment and demonstrate the efficiency, accountability, and long-term value of supporting university-led research.
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Federal Financial Aid
Protect Student Financial Aid
Federal financial aid is essential to ensuring students can access and complete their education. Each year, Michigan State University students receive over $400 million in federal financial aid, supporting thousands in pursuing their degrees and future careers.
This funding directly impacts graduation rates, student retention, workforce and economic development, and medical and technological advancements.
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One-Pagers
Federally Funded Financial Aid
The essential role of federal financial aid in expanding access to higher education at Michigan State University. With over $400 million awarded annually, federal aid empowers thousands of MSU students to pursue degrees that contribute to Michigan’s workforce, economy, and communities. It outlines major aid programs—like Pell Grants, Direct Loans, and PLUS Loans—and features personal testimonials from students across Michigan whose academic and professional paths were made possible by this support.
National Institutes of Health - Indirect Funding
On February 7, 2025, the National Institutes of Health (NIH) announced a standardized indirect cost rate of 15% for all new and existing grants, replacing the previously negotiated rate. This change threatens the financial sustainability of research conducted by Michigan State University throughout Michigan. The federal indirect rate reduction risks wasting taxpayer investments by underfunding the support needed to complete critical research projects.
U.S. Department of Energy - Indirect Funding
On April 11, 2025, the Department of Energy (DOE) announced a standardized indirect cost rate of 15% for all new and existing grants, replacing the previously negotiated rate. This change threatens the financial sustainability of research conducted by Michigan State University (MSU) throughout Michigan. The federal indirect rate reduction risks wasting taxpayer investments by underfunding the support needed to complete critical research projects.
National Science Foundation - Grant Cancellations + Future Indirect Funding
Between January and April 2025, major policy changes across the federal government led to sweeping cancellations of active National Science Foundation (NSF) research awards and freezes on new grants. This unprecedented action threatens the stability of research programs at Michigan State University (MSU) and institutions nationwide. Defunding critical scientific research risks wasting taxpayer investments, undermining national competitiveness, and ceding leadership in innovation to global rivals.
MSU College Advising Corp - Americorp Funding
AmeriCorps programs like Michigan State University’s College Advising Corps (MSUCAC) are vital to expanding opportunity, strengthening Michigan’s workforce, and investing in the nation’s future. Since 2011, MSUCAC has helped more than 65,000 high school students—many from low-income, first generation families—take critical steps toward earning a college degree or credential.
MSU Extension - 2024 SNAP-Ed Program Highlights
SNAP-Ed, delivered by MSU Extension in partnership with the state, is a vital resource supporting healthy eating and active living for low-income Michiganders. In FY24, it reached over 115,000 residents through education, community partnerships, and policy changes. With federal funding changes on the horizon, this proven, impactful program is now at risk—putting critical health equity efforts across Michigan in jeopardy.
How Congress Funds the Government:
Understanding Appropriations and Budget Reconciliation
Federal appropriations and budget reconciliation are two distinct tools Congress uses to shape federal spending and policy. Appropriations fund government programs annually through a bipartisan process, while reconciliation allows for targeted fiscal changes—like taxes or mandatory spending—with a simple majority. Understanding the differences helps clarify how key national decisions are made and implemented.
How to Meet with a Lawmaker
Effective communication is essential at all stages—before, during, and after meetings with lawmakers. It is crucial to balance the requirements of the lawmaker's office with strategies that effectively drive your planned objectives. Additionally, regular follow-up is key to sustaining a lasting and fruitful partnership.