August 15, 2024
FOR IMMEDIATE RELEASE
August 15, 2024
Contact: MichiganInfrastructure@michigan.gov
Biden-Harris Administration’s Inflation Reduction Act Sparks Job Creation, Results in over $26 Billion in Clean Energy Investments and Projects Across Michigan
Michigan lowers health care, prescription drug, and energy costs, creates middle-class manufacturing jobs, and advances climate goals with funding from the IRA
LANSING, Mich. — Two years after the passage of the Biden-Harris Administration’s Inflation Reduction Act (IRA), Michigan continues to secure funding to create a brighter future for Michiganders. According to a recent report, Michigan is No. 1 in the nation for winning IRA-funded projects, resulting in more than $26 billion in new investments across the state, supporting over 21,000 good-paying jobs. The investments, along with Governor Whitmer’s clean energy laws and bipartisan economic development tools, are growing the middle class, creating good-paying jobs, bringing supply chains home, lowering energy costs for families, and positioning Michigan to achieve the goals of the MI Healthy Climate Plan.
“Thanks to the strong partnership of the Biden-Harris administration, Michigan is building a strong economy, driven by our world-class manufacturing capabilities, talented workers, and unmatched grit,” said Governor Whitmer. “The Inflation Reduction Act and other landmark federal resources are helping us create high-skilled, good-paying jobs, bring supply chains home, lower our dependence on foreign fuels, and build the future of cars, chips, and batteries. We are a national leader in the battery and clean energy race, a top state for energy sector job growth, and home to the #1 emerging startup ecosystem. Construction jobs are at a 22-year high as Michiganders roll up their sleeves to transform communities across our state. We will remain laser-focused on securing projects, lowering energy costs for Michigan families, and building a bright future for our state. Let’s get it done.”
“News laws passed by Vice President Harris and Democrats in Congress are helping to boost wages, lower costs and bring back manufacturing jobs back to Michigan, said U.S. Congressman Dan Kildee. “Families are seeing lower prescription prices after we capped the cost of insulin at $35 a month for seniors and for the first time ever allowed Medicare to negotiate lower drug prices for consumers. And we are investing in American manufacturing to grow our economy here in America, not in countries like China.”
“The Inflation Reduction Act - the single largest investment in clean energy and climate actions in American history - has already created thousands of good-paying jobs in Michigan in the last two years, is ensuring our communities are stronger and more resilient to the effects of the climate crisis, and is making significant progress toward our clean-energy future,” said U.S. Congresswoman Debbie Dingell. “I’m proud of all we have accomplished so far – Michigan is the national leader for the most clean energy projects announced in the last two years – and I look forward to continuing to work with our partners at every level to bring additional investments to our state.”
“West Michigan families should not have to choose between life-saving drugs and putting food on the table. Finally, we’re all beginning to feel the relief of the Inflation Reduction Act on our pockets,” said U.S. Congresswoman Hillary Scholten. “Our paychecks are stretching further especially because of the IRA’s caps on prescription drug prices. There is more work to be done to lessen our burdens, but with the IRA we are on track to heal our economy.”
Michigan Utilizes IRA Resources to Lower Energy Costs for Michigan Households and Businesses
In addition to driving investments in clean manufacturing, the IRA lowers costs and brings clean energy solutions to Michigan residents and businesses across the state. The state has already secured millions of dollars in climate-related funding that will reach Michigan residents and businesses in the coming years. Highlights of secured funding include:
In addition to the highlights above, there are direct opportunities for families, businesses, communities, nonprofits, and schools on the table, including tax credits and incentives for clean energy and electric vehicles. So far, more than 3.4 million American families have claimed more than $8 billion in residential clean energy and home energy efficiency credits against their 2023 federal income taxes, the first year that these tax credits were in effect nationwide, with over 117,300 Michigan households benefiting so far. Families can identify what clean energy incentives and tax credits are available to them on the Michigan Energy Efficient Upgrade Savings Calculator.
IRA Helps Michiganders Save Money on Prescription Medications
The Inflation Reduction Act permits the Centers for Medicare and Medicaid Services (CMS) for the first time to negotiate prices with drug manufacturers in the Medicare Part D program. The ability to negotiate on drug prices has the potential to not only increase out-of-pocket savings for seniors but increase their access to these negotiated medications under the Medicare Part D Program. The ten medications selected are used to treat conditions such as cancer, diabetes, blood clots, heart failure, psoriasis, and rheumatoid arthritis.
The IRA also caps the costs for insulin products at $35 a month for those Medicare beneficiaries that require insulin products to manage their diabetes. In Michigan, Medicaid beneficiaries have access to insulin products at little to no cost. Additionally, the IRA requires Medicare to cover vaccines for older adults such as those for shingles, influenza, pneumonia or COVID-19 at no cost. The Michigan Medicaid program also provides all Advisory Committee on Immunization Practices (ACIP)-recommended vaccines at no cost to Medicaid beneficiaries.
“The IRA has allowed Michigan residents to keep more money in their pockets and helped keep drug prices down,” said Michigan Department of Health and Human Services Director Elizabeth Hertel. “These investments by the Biden-Harris administration have a direct, money-saving impact for our residents. No one should have to worry about how to pay for their prescription medications and we are grateful for these important policies and the effects across our state.”
Because of President Biden’s lower cost prescription drug law, the Inflation Reduction Act, which established the Medicare Prescription Drug Inflation Rebate Program, some people with Medicare who use these drugs during this time may save between $1 and $4,593 per day.
Michigan Leverages IRA to Achieve Climate and Clean Energy Goals
Michigan is aggressively pursuing federal funding opportunities to implement the MI Healthy Climate Plan and the state’s new clean energy laws. The plan lays out a pathway for Michigan to reach 100 percent carbon neutrality by 2050 to avert the worst impacts of climate change and build a healthier and more prosperous, equitable, and sustainable Michigan for all Michiganders. The IRA helps Michigan meet those goals by leveraging funding that will accelerate the transition to and adoption of clean energy resources. Recent investments include:
“In the two years since the passage of the IRA, Michigan has secured funds allowing us to put the MI Healthy Climate Plan into action," said Phil Roos, director of the Department of Environment, Great Lakes, and Energy. “But, it’s not only about climate, the IRA has made a real impact in the lives of Michiganders–saving them money on their electric bills, creating new economic opportunities and high-paying jobs, and enhancing their communities. By investing in clean energy and climate solutions, the Biden-Harris administration has invested in our future–the future of our people, planet, and economy.”
Michigan Takes Advantage of the IRA to Spur Clean Energy Manufacturing
Job creation and advanced manufacturing are booming thanks to the IRA with plans for 173 new battery manufacturing sites, 137 new or expanded electric vehicle manufacturing facilities, and 166 solar and wind manufacturing plants across the nation. These projects are set to create or support 21,490 new jobs in Michigan. Prior to the passage of the IRA, the United States had just two electric vehicle battery manufacturing plants, now the country has 34 with five in Michigan. Recent 2024 highlights include:
“Michigan is a good investment. We are prepared, we’re organized and we’re investing these dollars wisely and effectively to improve the quality of life for Michiganders across the state,” said Zachary Kolodin, chief infrastructure officer and director of the Michigan Infrastructure Office. “From expanding clean manufacturing and building more EV chargers to upgrading public transit and increasing energy efficiency for households, funding from the IRA is strengthening our economy and setting Michiganders up for success by creating jobs, lowering costs, and paving the way for a more sustainable future.”
Michigan Mobilizes to Secure Federal Dollars
Since the passage of the IRA, as well as the Bipartisan Infrastructure Law and CHIPS and Science Act, Michigan has actively mobilized to secure federal resources. Governor Whitmer proposed and secured $337 million for the Make it in Michigan Competitiveness Fund (MIMCF) to help bring home more than Michigan’s fair share of federal resources to grow the economy and bring more projects home. To date, the fund has invested $48.8 million, leveraging $276 million in federal funds, a return on investment of more than 5:1. The fund supports investments in infrastructure, mobility and electrification, climate and the environment, economic development, health, and public safety.
For more information about how federal funding is being invested to improve Michigan’s infrastructure, please visit michigan.gov/whitmer/issues/michigan-infrastructure-office.
ABOUT THE MICHIGAN INFRASTRUCTURE OFFICE
The Michigan Infrastructure Office is responsible for organizing and executing Governor Whitmer’s vision for infrastructure, coordinating across state government, marshaling resources, and partnering with local officials, federal partners, and outside stakeholders to ensure resources sent to Michigan through BIL, also known as the Infrastructure Investment and Jobs Act (IIJA), are used efficiently and effectively.
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