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House Republicans approve $56.6M cut to MSU funding, budget advances to Senate

June 19, 2025
A Michigan State University sign on Beal Street on Aug. 23, 2019.
A Michigan State University sign on Beal Street on Aug. 23, 2019.

Michigan House Republicans voted late Thursday to approve a $2.2 billion state budget proposal that would cut funding for Michigan State University by more than $56 million — sparking concern among university officials and Democratic lawmakers.

The revised plan includes an 18.3% cut to MSU’s operational funding — a reduction of $56.6 million from current levels. While significant, it is far less severe than the original Republican proposal, which aimed to slash MSU’s funding by 72.6%, or $237.4 million.

The cuts were originally introduced in House Bill 4580, sponsored by Rep. Greg Markkanen (R-Hancock), which proposed reducing funding for Michigan’s 15 public universities by $828 million. The proposal was later amended following pushback from House Democrats and the higher education community.

In a statement to The State News, MSU spokesperson Amber McCann said even the revised cuts would threaten the university’s ability to fulfill its mission.

“MSU educates more Michigan residents than any university in the state and prepares them to lead in every sector of our economy — from agriculture and health care to engineering, education, and entrepreneurship,” McCann said. “A budget reduction of the scale proposed by the House would hinder our ability to deliver the high-quality, affordable education that Michigan students expect and deserve.”

McCann added that Michigan’s state budget should reflect its commitment to students and the public institutions that serve them.

“As other states invest more in their public universities, Michigan must do the same. We urge lawmakers to adopt a higher education budget that reflects the values of Michigan residents and our shared priorities:

  • Supporting Michigan students through sustained and expanded financial aid;
  • Investing in public university infrastructure to ensure safe, modern learning environments;
  • Strengthening the institutions that power our state’s talent pipeline and economic resilience.

We are proud of the role MSU plays in driving Michigan’s future—and we believe the state budget should reflect that value, not diminish it.”

The vote comes at a time when MSU is already facing internal financial pressures. President Kevin Guskiewicz recently announced a plan to cut the university’s general fund spending by 9% over two years due to rising healthcare costs, operational expenses, and declining state support. Those cuts will result in the elimination of underperforming programs and some staff positions.

The House Republican budget also included controversial policy language — much of which has since been removed — that tied university funding to ideological issues. The original version would have withheld state funding from universities that allowed transgender women to compete in women’s sports or did not verify students’ immigration status. Both provisions were stripped from the final version.

However, a provision targeting Diversity, Equity and Inclusion efforts remains. Under the current Republican plan, the state would withhold one dollar of funding for every dollar a university spends on DEI-related programs or initiatives.

This comes as MSU continues to defend its DEI efforts. Earlier this year, the university said it would comply with legal requirements but would not eliminate its DEI programming. In March, MSU was among the universities exempted from a wave of federal investigations into DEI programs—an initiative championed by President Donald Trump.

In a statement to The State News, State Rep. Julie Brixie (D-Lansing) criticized the proposed cuts and the political motivations behind them.

“House Republicans were forced to backtrack on their original widely criticized budget last week,” Brixie said. “However, their new revisions still cut roughly 18%, or $56.6 million dollars from MSU. This proposed budget compounds with federal cuts to USAID, USDA, and NSF, and will negatively impact MSU and every other Higher Education institution in the state. State government has not kept up with funding higher ed over the past 30 years, and if this continues, it will become even harder for every Michigander to access quality education.” 

The higher education spending plan now heads to the Democratic-controlled state Senate, where lawmakers must reach a final agreement by July 1 to ensure timely funding for state operations.

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