Court puts a halt to state grant payouts

State funding for a new fire truck has been halted while a court decides whether state funding for various projects in a number of communities is constitutional.

By Charles Sercombe
For a moment, it looked like Hamtramck would be off the hook for funding a new fire truck and other items amounting to about $5 million.
But the Republican-led state legislature canceled $645 million worth of community projects that, in many cities, were already underway.
That decision was halted by state Attorney General Dana Nessel.
So, Hamtramck was able to breathe easy again.
That is, until state Republicans went to court and successfully sought a reversal. A Michigan Court judge did just that, and ordered a halt to making good on paying those millions of dollars.
According to media reports, Republicans may very likely get their wish.
At stake for Hamtramck are the following projects:
• $2 million for a new DPW building
• $2 million for the parking lots/road in Veterans Park for the Historical stadium project
• $800,000 for a new fire truck

The Veterans Park project and the construction of a fire truck are each already underway.
At this point, Hamtramck has already received a portion of the promised grants.
Recently, Michigan Court of Claims Judge Michael Gadola sided with state Republicans, but ruled that past payments will not be affected. The matter, however, remains unresolved.
Interim City Manager Alex Lagrou said that, at this point, “We have to wait and see where it goes. … We need that money more than anything. We were relying on it.”
Lagrou said he’s concerned that, in the future, this could impact low-income communities like Hamtramck.
“It’s going to hurt these communities,” he said.
A financial bonanza was realized in Hamtramck when it came to federal and state grants for the city. In total, the city received $22 million from those multiple grants.
T put that in perspective the city’s entire yearly budget is usually around $22 million.
Going forward, Lagrou said the city has to be more aggressive in seeking grants.
“You just have to know how to do it,” he said.
Finding and getting grants may prove more challenging this year.
The state recently said that its yearly budget was dealt a $1 billion setback in projected income – meaning there will be less money to share with local communities.
Posted Jan. 23, 2026