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House subcommittee hears MDOT, airport executives on Michigan aviation funding; parking-tax sunset flagged as a risk

House Appropriations Subcommittee on Transportation · December 11, 2025
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Summary

MDOT and airport officials told the House Appropriations Subcommittee on Transportation that Michigan’s aeronautics programs rely heavily on federal capital grants and a parking-tax earmark that sunsets in 2030, urging lawmakers to preserve state match funding and boost airport support beyond a $50,000 recruitment line item.

Madam chair convened the House Appropriations Subcommittee on Transportation for a briefing on state support for aviation, where MDOT and airport executives described current funding sources and urged action to avert a future funding gap.

William Hamilton, who opened the briefing with a budget overview, said the state transportation budget is roughly $7.8–7.9 billion, with federal revenue around $2.3 billion and state-restricted revenue about $5.4 billion. Hamilton said approximately $330 million is appropriated for aeronautics programs in the current budget, and roughly $317.1 million (96%) is directed to capital outlay grant programs that provide capital assistance to publicly owned, public-use airports.

Lynn Smith of the Michigan Department of Transportation’s Office of Aeronautics described MDOT’s…

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