Cuts to Federal Programs Could Risk 5,000 Jobs and $1 Billion in Economic Loss in Michigan

A 20% cut to federal programs could also impact more than 100 industries, including construction and telecommunication services, in the state. 

Washington, D.C. – Today, National Skills Coalition (NSC) released an analysis conducted by the Burning Glass Institute on the potential impact of significant cuts to the Bipartisan Infrastructure Law (BIL), Inflation Reduction Act (IRA), and Broadband Equity, Access, and Deployment (BEAD) program on Michigan’s economy. The findings show that a 20% reduction in these programs could result in over $1 billion in lost economic output* and the elimination of 4,973 jobs—in the first year—across more than 100 industries. 

“These federal investments are doing exactly what they were designed to do: creating middle-class jobs that people can access with skills training and strengthening local businesses,” said Brooke DeRenzis, CEO of National Skills Coalition, a national, bipartisan policy organization that fights for inclusive, high-quality skills training so that more people have access to a better life, and more local businesses see sustained growth.   

 “We can’t cut our way into shared prosperity. Stopping these programs now would pull the rug out from under workers, businesses, and communities that have been preparing for these new job opportunities.” 

The analysis shows that the losses would hit hardest in industries like power and communications construction, highway and street repair, and architecture and engineering services — sectors that provide good jobs to workers without a four-year degree, the exact jobs that are the backbone of our country’s economy. In total, 103 industries would be affected. 

The cuts would ripple across communities, hurting: 

• Mid-career workers — particularly those around age 44 who have built careers in skilled trades, infrastructure, and telecommunications 

• People without a college degree — including those who gained skills through apprenticeships, community colleges, or on-the-job training 

• Working-class families in rural and industrial parts of Michigan — the very communities that these infrastructure and broadband investments were designed to support 

• Small and local businesses — such as restaurants, retailers, and healthcare providers that rely on the spending power of workers employed by these projects 

With unemployment already higher than the national average for people without a college degree and employment growth slowing across the state, these proposed cuts threaten to deepen economic insecurity — especially for the workers and regions that can least afford it. 

NSC is urging Congress to protect these critical investments in upcoming reconciliation and budget discussions. Michigan’s economy — and the families, businesses, and communities it supports — cannot afford the setbacks these proposed cuts would bring. 

Download the full analysis fact sheet here. 

* Economic output means wages, income for businesses, the value of materials and services, and taxes generated. Nearly 1 billion lost means lost paychecks, lost business revenue, and fewer dollars flowing through Michigan. 

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Contact:  

Carlos Diaz Barriga
Managing Director of Communications and Narrative Change
carlosdb@nationalskillscoalition.org