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HomeDroneMichigan Announces $40 Million in AAM Funding in New Report

Michigan Announces $40 Million in AAM Funding in New Report

Michigan’s Office of Future Mobility and Electrification (OFME) released its inaugural Advanced Air Mobility annual report, documenting $42 million in public and private sector investment directed toward AAM-related initiatives throughout 2025. The report outlines progress across six strategic pillars established under Governor Gretchen Whitmer’s Executive Directive 2025-4, signaling substantial momentum in the state’s effort to develop a comprehensive aerial mobility ecosystem.

Advanced Air Mobility Testing Infrastructure Expands Across Michigan

Michigan has established nine active test sites capable of supporting diverse unmanned aircraft operations. The testing infrastructure now includes the Michigan Unmanned Aerial Systems Consortium flight center at Alpena, the Detroit Smart Parking Lab, and the FLITE program at Gerald R. Ford International Airport. These facilities feature BVLOS-capable airspace, turnkey testing environments, and certification support for cargo, surveillance, inspection, and future passenger aviation applications. According to the report, this infrastructure creates a foundation for scaled advanced air mobility deployment across the state.

Commercial Deployments and Manufacturing Growth

Four high-impact commercial deployments are currently operational in Michigan, including CVS Health’s medical-delivery drone operation, Jack Demmer Automotive Group’s rapid parts-delivery pilot, Munson Healthcare’s medical-supply flights, and a blueflite-led search-and-rescue demonstration with Traverse Connect. Manufacturing capacity expansion is being supported through the Make It in Michigan Mobility Prototyping Grant Program, which expanded to $2 million in 2025 funding. New entrants like Birdstop, which relocated its headquarters from Silicon Valley to Detroit, are establishing production operations alongside established manufacturers strengthening Michigan’s UAS supply chains.

Workforce Development and Public-Sector Integration

OFME’s workforce needs assessment surveyed 36 manufacturers, identifying persistent gaps in engineering, skilled trades, and technical roles. The report indicates new certification pathways and training partnerships are being developed across vocational schools, community colleges, and universities. Additionally, five state agencies—Michigan State Police, Michigan Department of Transportation, Department of Natural Resources, Department of Environment Great Lakes and Energy, and Michigan Department of Agriculture and Rural Development—are participating in the AAM Statewide Mobility Challenges to deploy drone-based solutions for public services.

The full report is available here.

About the Michigan Office of Future Mobility and Electrification (OFME)

The OFME works across state government, academia and private industry to enhance Michigan’s mobility ecosystem, including developing dynamic mobility and electrification policies and supporting the startup and scale-up of emerging technologies and businesses. It is part of the Michigan Economic Development Corporation. Michigan’s competitive advantages make the state a place where mobility solutions are born and where companies find long-term success and support. For more information, visit https://www.michiganbusiness.org/ofme/.

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.

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