House subcommittee reviews Department of Military and Veterans Affairs $275.9 million fiscal 2025 budget

The House Appropriations Subcommittee on Military and Veterans Affairs reviewed the Department of Military and Veterans Affairs' $275,900,000 gross fiscal 2025 budget in a meeting during which House Fiscal Agency analyst Aaron Meek briefed members on program lines, federal matches and one-time appropriations.

Aaron Meek, House Fiscal Agency analyst for the Military and Veterans Affairs and Michigan State Police budgets, told the subcommittee the department serves “a sort of dual purpose. They provide both an operational military force … as well as a network of services and programs to support, Michigan veterans and their families.” He said the department is organized into three core sections: the Michigan National Guard (MNG), the Michigan Veterans Affairs Agency (MVAA), and the Michigan Veterans Facility Authority (MVFA), which operates the state's three veterans homes.

Meek said the fiscal 2025 gross appropriation is $275.9 million, with the largest share — about $144.8 million — coming from federal grant and matching revenue, $117.7 million from the state general fund, roughly $13.2 million from state restricted funds, about $100,000 from private donations and $101,800 from interdepartmental grants. He said roughly 95% of the appropriation is federal and general fund dollars combined.

Military and National Guard lines: Meek described roughly $45.9 million for military training sites and support facilities covering operations and maintenance at MNG facilities and department-wide functions; $24.4 million for administrative functions including the adjutant general's office, HR and facilities management; $11.2 million for the Michigan National Guard State Tuition Assistance Program (MINGSTAP); $10.3 million for the Michigan Youth Challenge Academy (MICA); and smaller allocations for STARBASE and retirement obligations. Meek said about two-thirds of the military unit appropriation is federal authorization and the remainder is mostly general fund.

On Selfridge Air National Guard Base: Meek said recent legislature appropriations since fiscal 2023 totaled about $35.8 million for improvements and construction projects at Selfridge, including a roughly 41,000-square-foot hangar and runway-shift work intended to support future fighter missions and reduce encroachment risks near residential development. He said the fiscal 2026 executive recommendation includes a proposed additional $26 million for continued Selfridge projects as a one-time line.

Education and workforce programs: Meek summarized student and funding figures for two in-state programs. The Michigan Youth Challenge Academy (MICA) operates two 22-week voluntary programs for at-risk 16- to 18-year-olds; Meek said the program produced 236 graduates last calendar year and averages about 213 graduates annually. Fiscal 2025 funding for MICA was $10.3 million gross, with a federal-to-state split Meek described as roughly three federal dollars for every one state dollar (about $6.9 million federal, $3.4 million general fund, and roughly $90,000 private donations). Meek said administrative and staffing costs account for about 80% of MICA and job-challenge program costs and that the state general fund cost per student averages about $5,000.

STARBASE and federal funding status: Meek told the subcommittee that STARBASE, a Department of Defense STEM program operating three Michigan sites (Selfridge, Battle Creek Air National Guard Base and Alpena Combat Readiness Training Center), is closed nationwide as of Feb. 7 because of federal funding negotiations. He said the DOD comptroller had released about $20 million for STARBASE programs under the continuing resolution and had not released additional funds, leaving the programs closed pending further federal action.

Tuition assistance and fund rules: On MINGSTAP, Meek said the program and fund were created in 2014 and were amended in 2023 to extend benefits to spouses and dependents. He said by statute money in the fund above $15,000,000 lapses to the general fund; the MINGSTAP fund balance was about $8.7 million in expenditures and encumbrances to date for fiscal 2025 of about $2.8 million.

MVAA and veterans grants: Meek said MVAA's fiscal 2025 unit totals about $24.8 million gross, with roughly 41% going to administrative costs and more than half directed to a range of veterans grant programs. He gave line amounts including $4.25 million each for county veteran service (CVS) grants and veteran service organization (VSO) grants, $2.5 million for Veterans Trust Fund (VTF) grants, $1.2 million for VTF administration, and $2.5 million in one-time funding for programs aimed at eliminating veteran homelessness. Meek said most MVAA funding is general fund; the VTF grant dollars come from interest earnings rather than the trust principal.

MVFA and veterans homes: Meek said MVFA's unit totals about $105.2 million and operates three veterans homes (Chesterfield Township, the D.J. Jacobetti Home in Marquette and the Grand Rapids home) plus a veterans cemetery adjacent to the Grand Rapids facility. He said about half of MVFA funding is federal (including Veterans Health Administration revenues and federal Medicare/Medicaid program revenues) and about half is general fund, with approximately $6.6 million in state restricted revenue from income-based assessments paid by or on behalf of residents.

Meek noted a long-term decline in veterans home populations: gross resident populations across the three homes have declined roughly 48% from fiscal 2009 through fiscal 2024. He attributed differences in appropriations among homes partly to construction and unexpected staffing-related costs but said detailed causes for population decline were beyond HFA's immediate data and likely better answered by MVFA staff.

Capital outlay, IT and one-time appropriations: Meek said capital outlay totals roughly $32.5 million (mostly federal) to support armory and facility maintenance and land appraisal/acquisition. The IT unit is smaller; MVFA IT is appropriated separately. He identified three general-fund one-time appropriations in fiscal 2025 totaling $19 million: $15 million for Selfridge projects, $2.5 million for eliminating veteran homelessness grants and $1.5 million for grounds and roads maintenance at the VFW National Home in Eaton Rapids.

Q&A and follow-ups: During questioning, members asked whether VSO grant funding is general fund (Meek said he believes those specific grant line items are general fund and offered to confirm with the department), whether a northern Michigan veterans cemetery received fiscal 2025 funding (Meek said not in fiscal 2025 but the fiscal 2026 executive recommendation includes money), and whether an RFP/procurement for the cemetery had expenditures (Meek said he did not have dollar-level details and would coordinate with the department). Meek also said he could compute the overall federal pass-through percentage for the committee and said a back-of-the-envelope estimate was that around half of the department's funding is federal. Representative comments showed concern about possible federal reductions to VA staffing and the potential local impact on services.

Votes at a glance: Representative Rogers moved to excuse absent members; the motion was adopted without objection and the subcommittee adjourned.