This Just In: Federal Investments Poised to Transform Michigan

According to a report from The Center for American Progress, public and private sector investments promise Michigan residents a “brighter future”

In a new report from The Center for American Progress (CAP), Michigan was recognized as a standout state poised to benefit from the “transformative potential” of the Biden administration’s Investing in America agenda, as a result of the focus on infrastructure improvements and attracting electric vehicle (EV) battery manufacturing investments.

Three key pieces of economic legislation – the Infrastructure Investment and Jobs Act (IIJA), the CHIPS and Science Act and the Inflation Reduction Act (IRA) – have led to building manufacturing competitiveness in the U.S., making the transition to clean energy and placing an emphasis on training and equity for workers to spur economic growth.

“Michigan—the historic home of the American auto industry and a state where organized labor has long played an important role in giving workers a good job and a strong voice—represents a microcosm of the economic and community transformation that will arise from this 21st century investment agenda,” the report said.

In the report, CAP highlights three projects in Michigan that align with the Biden administration’s investment agenda, which focuses on revitalizing transportation infrastructure, reconnecting downtowns and neighborhoods and expanding capacity to produce American-made EVs through public and private sector investments.

• In February 2023, Ford announced a $3.5 billion investment to build BlueOval Battery Park Michigan, a lithium iron phosphate battery plant in Marshall, continuing the automaker’s commitment to transitioning to EV production in the state. CAP cites the IRA as an incentive for the transformative investment set to benefit the surrounding Marshall community, its businesses and residents. At the time of the announcement, Ford’s CEO Jim Farley said in reference to the Marshall plant, “this is the reason the IRA was passed.”
  
  
• In Detroit, a $105 million competitive federal grant from the U.S. Department of Transportation, using funds from the IIJA, will help to fund the I-375 modernization project. Announced in September 2022, the project will replace the outdated I-375 freeway with an accessible boulevard, spurring economic development and linking adjacent areas of Detroit. According to CAP, the I-375 Reconnecting Communities Project is closely tied to the Biden administration’s efforts to use infrastructure investments to reduce racial inequity.
  
  
• The city of Kalamazoo was among six winners of a capital grant from a new U.S. Department of Transportation initiative called the Reconnecting Communities Pilot Program. The $12.3 million grant funds the “cornerstone project” in the city’s overhaul of its zoning code and transportation network, a shift in traffic patterns for two key roads in the heart of the city. Public input has already influenced the design of the proposed options. According to CAP’s report, the project demonstrates the influence transportation infrastructure policy has beyond large-scale construction projects.

Citing Michigan in particular, CAP’s report states “the projects that are starting to take shape across the country show promise in how they can address long-standing economic challenges and set communities up for the future.”

This latest news from The Center for American Progress follows other recent accolades, initiatives and announcements that continue to build Michigan’s leadership in meeting the needs of the 21st century, from electric mobility to infrastructure improvements.

At the 2023 Mackinac Policy Conference, Governor Gretchen Whitmer announced Make it in Michigan, a comprehensive economic strategy to keep winning projects, invest in people from pre-K through postsecondary and revitalize places in every region of the state. The initiative will help the state continue its momentum following a year and a half of strong economic development work and transformative investments.

Also during the conference, Governor Whitmer announced the Growing Michigan Together Council as part of a statewide strategy aimed at continuing Michigan’s economic momentum through various measures, including upgrading and modernizing our transportation and water infrastructure.

A 2023 report from Climate Power shows Michigan continues to lead the race for jobs and investment, ranking as the number two state nationwide for clean energy investments with a combined $20 billion of investment since August 2022. The report also shows Michigan leading the nation after winning 14 projects in clean energy, battery and EV manufacturing.

In January 2023, General Motors’ (GM) $7 billion investment in Michigan was recognized in the Electric Vehicles (EV) category of Business Facilities’ 2022 Impact Awards, announced as part of the publication’s annual Deal of the Year awards. The news came days after Michigan was recognized by CNBC as one of the top three states set to “dominate” U.S. battery manufacturing by 2030.

Find out more about Michigan’s leadership in the future of mobility and electrification here, and learn about the Pure Opportunity that can be found in Michigan at https://www.michiganbusiness.org/pure-opportunity/.

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.