Environmental groups, business groups, grant recipients, and state officials sound the alarm on how recent federal cuts will hike energy costs for Michigan households and derail progress on state climate goals
LANSING, Mich. (Sept. 18, 2025) — Today, the Senate Energy and Environment Committee, chaired by Sen. Sean McCann (D-Kalamazoo), held a hearing to explore concerns on rising energy costs for Michigan residents following the Trump administration’s unprecedented attacks on clean energy programs. Conservation advocates, state officials, and energy experts shared testimony on the detrimental effects of the so-called “Big, Beautiful Bill” signed into law this summer, detailing how families across the state will be forced to pay the price through job losses and higher utility costs.
“With so many families already struggling to make ends meet and the cost of living continuing to rise, it’s abundantly clear that the people of Michigan need real solutions to their economic challenges — not more hits to their household budget,” said Sen. McCann. “While Washington Republicans roll back progress on key climate change solutions, Michigan Democrats will continue fighting to lower costs, strengthen our economy, and forge a clean energy future for the next generation.”
Signed into law by President Donald Trump on July 4, 2025, the dangerous “Big, Beautiful Bill” reverses critical Inflation Reduction Act (IRA) funding and guts federal clean energy programs, impacts which testifiers warned will cause harm to state jobs, the economy, and residents’ financial security. By eliminating clean energy tax credits and rolling back federal funding for energy efficiency — including the Environmental Protection Agency’s (EPA) termination of the state’s “Solar for All” program — Michigan households are predicted to pay $320 more in electricity costs each year by 2035.
“The federal reconciliation bill and cancellation of the Solar for All program withdrew energy investments that had already been promised to Michigan,” said Ben Poulson, Director of State Government Affairs with the Michigan League of Conservation Voters. “These programs were designed to lower energy costs for households, provide relief for small businesses, and strengthen our energy system. The result is higher costs for Michiganders and fewer tools for the state to address them.”
The megabill’s effects on the state’s workforce are not insignificant either, with experts anticipating major hits to hundreds of thousands of clean energy jobs, from EV and battery manufacturing to renewable energy construction. Construction and factory closures are expected to kill 17,000 Michigan jobs over the next five years, potentially impacting another 226,610 jobs throughout the supply chain. And the nation’s GDP is anticipated to reduce by $130 billion by 2030 as new energy deployment, EV sales, and new factory investments continue to decline.
One testifier, Justin Carpenter, Director of Policy for the Michigan Energy Innovation Business Council, spoke to how the administration’s clawback of clean energy dollars results in distrust of the federal government, saying, “The wrongful withdrawal of the Solar for All is a withdrawal of commitment to the American energy customers and businesses at a time when it was most crucial. As demand for energy grows at a rate that is unseen in our lifetimes and unemployment creeps upward, it is the average American who will shoulder the burden of this reneged promise.”
Today’s testimony underscored the far-reaching and impactful nature of Michigan’s “Solar for All” program, which helps significantly reduce energy costs for thousands of low- and moderate-income Michigan households while boosting access to solar energy. The EPA’s recent cancellation of this game-changing program included a termination of $156 million in funds slated for Michigan projects — investments planned for multi-scale solar, energy storage, and to enable energy upgrades, as well as resources for workforce development, community education and outreach, and technical assistance.
The hearing featured testimony from community leaders who spoke to how the termination of the MI Solar for All grants has disrupted progress on clean energy projects slated for area residents. One such leader was Jeffrey Jones, Executive Director of HOPE Village Revitalization, a Detroit-based community organization whose grant to install clean energy projects in the area was terminated.
Jones said, “This was really a gut punch for us. HOPE Village is trying to demonstrate what a 21st-century neighborhood can look like — energy resilient, energy independent, caring for one another — because that’s what this is really about, making sure our neighbors can live the best quality of lives in their communities.
Speaking to further community impact in response to the loss of Solar for All grant funds, Mary Braun, Project Manager – Solar with the North End Woodward Community Coalition, said the program would’ve been instrumental in reducing household electricity by at least 30% for Highland Park residents. “For families living paycheck to paycheck, that relief is life-changing,” she said. “Canceling the program means more than the loss of dollars; it means the loss of hope and opportunity for families who need it most. It delays progress toward equity, climate resilience, and energy justice in the communities that have historically been left behind.”
This committee hearing follows a slew of actions taken by Michigan Senate Democrats to safeguard our state and residents from the dangerous, unprecedented cuts and decisions happening in the federal government.
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