Michigan Budget Unlocks Clean Energy Funds, But EV Penalties Threaten Momentum

Today, the Michigan Legislature passed the 2026-2027 state budget, which unlocks federal clean energy funds and boosts investments in public transit—but also introduces new fees on electric and hybrid vehicles. In response, Evergreen Action State Advocacy Director Courtney Brady released the following statement: 

“This budget finally rightfully unlocks long-awaited federal funds to help communities tap into the benefits of clean energy. With the Renewables Ready Communities program, towns across Michigan can look forward to new jobs, increased tax revenue, and critical infrastructure investment through wind, solar and battery storage projects. It also delivers a much-needed boost to public transit, expanding access to affordable, reliable transportation that connects Michiganders to jobs, schools, and essential services. 

“However, this budget includes one glaring misstep: a steep hike in fees on electric and hybrid vehicles. At the very moment Michigan is leading the way in EV manufacturing and sustaining thousands of auto jobs, punishing drivers for choosing these vehicles sends the wrong message. Lawmakers must course correct and support the clean transportation choices already cutting pollution and lowering costs for families across Michigan.”