Whitmer signs spending bill with $630 million to support Ford EV battery plant

Michigan Gov. Gretchen Whitmer is introduced on stage by Ford Motor Company Executive Chair Bill Ford before speaking about the BlueOval Battery Park Michigan to be built in Marshall during a news media announcement at Ford Ion Park in Romulus on Monday, Feb. 13, 2023.

Gov. Gretchen signed into law Wednesday a supplemental spending bill that appropriates nearly $630 million in incentives to support a Ford Motor Co. electric vehicle battery plant expected to create 2,500 jobs in the Marshall area.

The spending bill also allocates more than $147 million in federal funds to help states recover from the impact of the COVID-19 pandemic, funds to help remediate mineral wells, a suicide prevention grant for the Michigan Department of Military and Veterans Affairs and more.

"I'm proud to sign this bipartisan legislation to grow our economy, protect public health, and lower costs for families," Whitmer said in a statement.

More:Michigan lawmakers approve $630M more in incentives for Ford battery plant near Marshall

More:Lawmakers raise questions at additional $750M request for Ford battery plant

Funds to help prep Ford battery plant are biggest spends

The biggest item in the supplemental spending bill — House Bill 4016 — is a $330 million appropriation for road and infrastructure improvements to prepare the site of the Ford battery plant. The second largest item is a $299.7 million appropriation for land acquisition, demolition, tree clearing and other activities to achieve a "pad ready" site with an expected completion date in late 2026.

The funds are on top of the $36 million loan previously distributed to the Marshall Area Economic Development Alliance to get the site ready.

State economic development officials have already approved a $210 million grant for Ford along with a 15-year tax abatement for the company with an estimated value of $772 million.

Some Republican lawmakers have balked at the size of state funding for the Ford plant. "The return on investment is horrible," said state Rep. Ann Bollin, R-Brighton, in a statement.

What else is in the spending bill?

The spending bill also includes other spending by the state. Other items include:

  • $170.3 million for the Strategic Outreach Attraction Reserve Fund, the state economic development fund that doles out taxpayer-funded incentives for companies that expand to create jobs in the state.

  • $63.5 million to support long-term care services for Medicaid recipients.

  • $10.8 million — including $5.8 million in federal COVID-19 relief funds — to create an Office of Community Violence Intervention Services and provide grants to address community violence.

  • Nearly $9.9 million for the Career and Technical Education Complex at North Central Michigan College.

Federal funding allocated

The bill will also allocate federal dollars, including COVID-19 relief funds in the American Rescue Plan. Federal funding will support several investments in Michigan, including:

  • $212 million for energy efficiency updates undertaken by homeowners and landlords.

  • $75 million in COVID-19 relief dollars to recruit, retain and train acute care and behavioral health care providers and $67 million to do the same for Michigan's long-term care workforce and support nursing home workers' career development.

  • $60 million for a grant program to support community centers in Michigan.

  • $10 million to rehabilitate wetlands in the Lake Erie and Saginaw Bay watershed.

  • Nearly $7.9 million to help mid-Michigan recover from storms in June 2021.

  • Nearly $7.3 million to support the AmeriCorps community service program.

Clara Hendrickson fact-checks Michigan issues and politics as a corps member with Report for America, an initiative of The GroundTruth Project. Make a tax-deductible contribution to support her work at bit.ly/freepRFA. Contact her at chendrickson@freepress.com or 313-296-5743. Follow her on Twitter @clarajanehen.

This article originally appeared on Detroit Free Press: Whitmer approves $630 million to support Ford battery plant