Report: 6 ways Michigan families will pay the price for Trump’s ‘unlawful’ funding freeze 

A new report details how Donald Trump’s federal funding freeze is poised to raise costs, kill jobs, and withdraw billions of dollars in clean energy investments across Michigan.

MICHIGAN—The Trump administration’s decision to freeze a wide array of federal funding is poised to bring about significant economic consequences for Michigan families, according to a new analysis released this month by US Reps. Rosa DeLauro and Marcy Kaptur.

Here’s the deal:

Under the direction of Trump and his largest campaign donor, billionaire Elon Musk, the federal government has halted a wide array of federal funding for agencies, programs, and services. 

That includes nearly all funds at the US Department of Energy, including cash designed to help families lower energy costs, strengthen the power grid, and support domestic manufacturing, as well as billions of dollars already allocated to support various clean energy initiatives across the country through the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.

But despite court orders mandating the release of these funds, the Trump administration has continued to hold them back—essentially preventing billions in legally allocated federal dollars from reaching local communities. And according to the report, that will soon translate to higher energy bills, fewer jobs, and stalled infrastructure projects nationwide—especially in Michigan.

“Trump ran on lowering costs and making America safer, instead he is illegally freezing funds, raising Americans’ energy bills, and making us more dependent on energy from other countries,” DeLauro said in a statement. “Hardworking people are already living paycheck to paycheck. Their biggest concern is the cost of living, but now Trump and Republicans are raising their bills in order to pay for tax breaks for billionaires and big corporations.”

Here are seven ways Trump’s funding freeze is already impacting Michiganders:

1. Freezing home energy rebates will raise energy costs for families.

According to the report, Michigan families were set to receive $211 million in Home Energy Rebates through the Inflation Reduction Act—which could’ve helped hundreds of households save up to $14,000 each on home improvements that are designed to cut their energy bills. 

All told, these rebates were expected to save US households $1 billion per year and create 50,000 jobs. But the funds still remain frozen this week—and as a result, the national average annual household energy bill could jump by as much as 12%, according to a recent analysis. 

2. The power grid will be left vulnerable against extreme weather.

Through the Infrastructure Investment and Jobs Act, Michigan was awarded a total of $102 million to modernize its electrical grid against wildfires, extreme weather, and natural disasters. 

These upgrades would have helped keep the lights on for families and businesses. But now, that funding is locked up, leaving Michigan’s power grid vulnerable, according to the report.

3. The funding freeze will threaten newly announced clean energy jobs.

The Midwest Hydrogen Hub—a joint project with Illinois and Indiana—was set to receive up to $1 billion in federal funding to support hydrogen energy infrastructure and create 13,600 jobs.

But with funding frozen, those jobs and investments are now on hold, the report states. 

4. Halting federal investments will stymy domestic battery manufacturing. 

Michigan manufacturers were set to receive at least $500 million in federal grants to boost domestic battery manufacturing and recycling under the Infrastructure Investment and Jobs Act. 

These investments were projected to create over 6,000 permanent jobs and 13,000 construction jobs nationwide—ultimately helping to secure a reliable, onshore supply chain for battery manufacturing in the US. According to the report, the future of that industry is now uncertain.

5. Blocking weatherization assistance raises costs for low-income families.

Low-income Michigan households were promised at least $183 million to help weatherize their homes and reduce energy costs as part of the federal Bipartisan Infrastructure Law, according to the report. These improvements would have saved families an estimated $372 per year on utility bills. Instead, Trump’s federal funding freeze has kept that relief out of reach for families.

6. Eliminating Clean Energy Jobs with DOE Loan Freezes

Before the funding freeze, the Department of Energy was on track to provide billions of dollars to help deploy new clean energy projects across the country—including more than $5 billion that was set to be awarded to Consumers Energy for solar and wind projects in Michigan.

Nationwide, Department of Energy loans have reportedly backed over 47,000 jobs to date. But with pending loans and applications on pause, those jobs could soon be on the chopping block. 

The Bottom Line 

Democratic lawmakers like DeLauro and Kaptur argue that Trump’s federal funding freeze isn’t just a bureaucratic blunder—but a deliberate attack on working-class Michiganders and their families, as well as a direct threat to Michigan’s economy and energy security. If Trump refuses to follow the law and release these funds, they say Michiganders could pay the price—literally.

“Actions to halt these programs will immediately contribute to rising energy costs for families and businesses, and are a dereliction of the Department’s responsibility to carry out duly enacted spending laws,” Kaptur said in a statement. “An unelected Billionaire who made his vast fortune off government contracts should not be able to unilaterally stop these programs, and take money out of the pockets of Americans who need it most.”

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