The Detroit Regional Chamber today released the following statement regarding the critical work of the United States Department of Education and its impact on Michigan’s competitiveness.
Keeping Michigan Competitive: The Critical Work of the US Department of Education
March 25, 2025
“The United States Department of Education delivers critical, coordinated programs, like financial aid, Title I funding, and career and technical education resources, which are vital to enhance the talent pipeline and grow the economy in Michigan and across the country. Programs like these, along with the Pell grant, help ensure Michigan employers have the talent they need to fill jobs today and tomorrow, which directly impacts the state’s ability to compete globally and build an innovation economy. The exact placement of a federal program may warrant discussion, and programs should be examined for effectiveness and efficiency, but many of the programs currently executed by the U.S. Department of Education remain important and fill gaps not served by state or local entities. The disruption or elimination of these programs and functions will have a disproportionate effect on Michigan residents, especially those in underserved communities.”
– Greg Handel, Vice President, TalentEd, Detroit Regional Chamber
Read more about the Department and its impact on Michigan ‘s education and workforce ecosystem below.
Michigan’s economic competitiveness depends on a strong, well-prepared workforce. Specific U.S. Department of Education programs play a critical role in ensuring that students across the state gain the skills, credentials, and support needed to meet the demands of Michigan’s employers. If the Department’s core functions were reduced or eliminated, the consequences would disproportionately impact Michigan’s ability to grow, attract, and retain talent—directly disrupting the workforce pipelines the state’s businesses rely on.
While the Department does not dictate curriculum or run schools, it plays an important supporting role in strengthening Michigan’s education and workforce ecosystem by:
- Overseeing the Carl D. Perkins Career and Technical Education Act, which works to align education with real-time labor market needs and growing career and technical education (CTE) pathways. The majority of Michigan’s $44.5 million of this funding goes directly to secondary and postsecondary programs that are actively training the current and future workforce.
- Administering federal student aid, including the Free Application for Federal Student Aid (FAFSA) and Pell Grants that help hundreds of thousands of Michigan students pursue college and credentialing opportunities. Since the launch of Michigan Reconnect, over 66,000 adults have enrolled at Michigan community colleges. As of March 2025, 60,000 students are receiving the Michigan Achievement Scholarship. FAFSA is a critical component for both programs.
- Providing targeted funding, including Title I support for schools in low-income communities that are foundational to equitable talent development. Title I funding supports additional staffing, family and community engagement efforts, academic interventions, and other crucial supports in approximately 60-65% of Michigan’s public schools. These funds are essential to more than 1,500 Title I schools across Michigan and directly support the development of the state’s future workforce—particularly in communities with the greatest need.
- Managing the submission and tracking of data through the Integrated Postsecondary Education Data System (IPEDS), a national database that is a backbone to track metrics that inform decision-making. IPEDS provides free access, allowing transparency and accountability as the state monitors progress towards its 60% degree attainment by 2030.
These programs are important to individuals seeking more education and skills for the economic prosperity of their families and communities. Sudden changes in program operation stand to undermine economic growth, slow innovation, and strain employers already struggling to fill jobs.
Despite managing programs that serve millions of students and institutions nationwide, the Department receives just 4% of total federal expenditures. That investment is vital to talent development in Michigan. In a state where too few students are earning in-demand postsecondary credentials—and where employers across sectors already report shortages in critical talent areas—disrupting federal support would only widen these gaps.
The Detroit Regional Chamber calls for deeper partnerships between federal, state, and local government, business leaders, and education stakeholders to ensure Michigan’s students are prepared to drive the future economy. Education remains the most powerful vehicle for upward mobility and economic prosperity—for individuals and the state.