LANSING, Mich. (WZMQ) A new state budget proposal from House Republicans would expand scholarships for Michigan students while reshaping how public universities and community colleges receive state funding.
Rep. Greg Markkanen (R-Hancock), who chairs the House Higher Education and Community Colleges Appropriations Subcommittee, unveiled a $2.4 billion higher education budget Wednesday. The plan includes a $5,500 annual scholarship for all Michigan high school graduates who attend an in-state public or private university, or $2,750 scholarship for students attending Michigan community colleges full time.
“Our budget directly benefits colleges and universities like Michigan Tech by making school more affordable and encouraging kids to go directly from high school into our top-class institutions,” Markkanen said.
Under the proposal, funding for the University of Michigan and Michigan State University would be significantly reduced by more than $239 million and nearly $62 million, respectively. House leaders say that funding would be redistributed among Michigan’s 13 other public universities, which have historically received less state support per student.
Markkanen said Michigan Technological University would see a $17.29 million increase, bringing its total state funding to about $111.6 million.
The plan also includes policy requirements that would bar universities from maintaining diversity, equity and inclusion (DEI) programs. Universities that do not comply would risk losing their state funding. Other provisions include a 10% cap on administrative spending, legal residency verification for all students, and penalties for schools that allow transgender women to compete in women’s sports.
House Majority Floor Leader Bryan Posthumus (R-Rockford) said the changes are aimed at prioritizing in-state students and reducing administrative costs in higher education.
The proposal is part of ongoing negotiations between the House, Senate, and the governor’s office as lawmakers work to finalize the state’s 2026 budget before the July 1 deadline.
