Funding coincides with Gov. Whitmer’s executive directive to advance the testing, production and integration of uncrewed aircraft systems technologies

Today, Governor Gretchen Whitmer announced a new executive order to establish the Michigan Advanced Air Mobility (AAM) Initiative, designed to scale Michigan’s AAM capabilities, ensure safe and efficient integration of these technologies across public and private sectors, and position our workforce, manufacturers and infrastructure as national assets in the deployment of these technologies. In conjunction, four new projects will receive over $4.1 million in total funding to scale AAM research and infrastructure through the second round of the state’s AAM Activation Fund. 

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Michigan Governor Gretchen Whitmer attending the inaugural Uncrewed Triple Challenge, a competition that challenges entrants with using unmanned, autonomous drones to seamlessly transport a package across the state.

“Michigan has long been the center of American mobility innovation. Today, advanced air mobility is a new mobility frontier, presenting an opportunity for Michigan to demonstrate next-generation industrial leadership,” said Gov. Whitmer. “As the global aviation sector grows rapidly, the United States must hurry to commercialize uncrewed aerial systems (UAS) technologies, strengthen critical supply chains, and reduce dependence on foreign manufacturing.”

Executive Directive 2025-X represents a whole-of-government strategy to scale Michigan’s AAM capabilities, ensure safe and efficient integration of these technologies across public and private sectors, and position the state’s workforce, manufacturers and infrastructure as national assets in the deployment of AAM technologies.

The Office of Future Mobility and Electrification (OFME) will lead the implementation of the Michigan AAM Strategy in partnership with the Michigan Department of Transportation (MDOT), Michigan Aeronautics Commission, Michigan Economic Development Corporation (MEDC), Department of Labor and Economic Opportunity (LEO), Department of Military and Veterans Affairs (DMVA), Office of Defense and Aerospace Innovation (ODAI) and other agencies as appropriate. Each department is directed to implement relevant strategies and initiatives to advance the safe and efficient growth of the AAM sector in Michigan.

Michigan is already making investments to drive its leadership in future AAM innovations, including through the second round of AAM Activation Fund recipients announced today. The projects receiving funding will address critical delivery needs in healthcare, emergency services, and the automotive industry while also advancing academic research in the area. The AAM Activation Fund is a collaborative effort between MDOT, the Michigan Aeronautics Commission, OFME, and the MEDC, which aims to create a centralized pipeline of projects that can accelerate AAM readiness and growth in the state. The first round of funding, totaling over $6 million, was launched in July 2024.

“The new AAM Initiative, as well as the second round of grant funding, represents our commitment to advancing the future of mobility, beyond the automobile, to uncover new opportunities for the movement of people, goods, and information across land, air, and water,” said Michigan Chief Mobility Officer Justine Johnson. “From delivering life-saving medical supplies to setting a world record for drone delivery, we are proud to continue developing aerial mobility solutions that will have a positive impact on Michiganders for generations to come.”

The four projects receiving funding include:

CVS Health ($1,500,000 – Troy, MI)

Michigan will be the first state to support CVS Health’s drone initiative, which aims to leverage UAS to address critical challenges in health care. Through this program, CVS Health will partner with multiple stakeholders to test using UAS to make it faster, simpler and more environmentally sustainable to get critical specialty medications to patients.

Traverse Connect ($949,000 – Traverse City and surrounding areas)

Expanding upon the Traverse Connect’s previously awarded AAM project, which tested and scaled UAS for use cases that include delivery of medical supplies and other critical healthcare services to improve rural health outcomes. This project seeks to implement a new phase of use of UAS to enhance the transportation of critical medical supplies, laboratory samples, and essential equipment across Munson Healthcare’s network of clinics.

“Traverse Connect and its partners are honored to receive additional funding from the Advanced Air Mobility Activation Fund for expanded use of uncrewed aerial systems for medical supply and sample delivery across Munson Healthcare clinics and facilities,” said Warren Call, president and CEO of Traverse Connect. “Northern Michigan’s emerging aerial mobility hub of public, private, and nonprofit partners is driving innovation and economic opportunity, while developing solutions for local and statewide challenges.”

Jack Demmer Automotive Group ($740,000 – Various Locations)

In partnership with DroneUp, Blueflite, and Airspace Link, the project will focus on utilizing drones for the rapid delivery of high-demand automotive parts within a 12-mile radius of Jack Demmer Ford dealerships. By leveraging drone delivery, the project aims at addressing current logistics challenges caused by road congestion and workforce shortages in urban settings like metro Detroit, creating a more resilient and efficient supply chain.

University of Michigan ($1,000,000 – Ann Arbor, MI)

The university will create “M-Air,” an expansion of the Mcity public/private partnership, building out testbeds for AAM and UAS. M-Air will also help incubate, attract, and nurture startups in aerospace, improve student experiential learning from K-12 to graduate education, and with its industry partners assist academic faculty with responding to and winning large federal grants for the region. In partnership with Michigan Central, M-Air will help establish a Detroit–Ann Arbor air mobility corridor that links the Advanced Aerial Innovation Region anchored at Michigan Central with a new hub to be established at the University of Michigan, creating a connected ecosystem for innovation, testing, and deployment.

"The next frontier of mobility is moving from land to sky, where drones and electric aerial vehicles can transform how we move people and goods,” said Karen Thole, the Robert J. Vlasic Dean of Engineering and a professor of mechanical engineering and aerospace engineering. “Michigan Engineering's M-Air partnership will play an important role in propelling the state to national leadership in advanced aviation technology and developing the workforce we need to sustain it."

Advancing the State’s Aerial Mobility Leadership

The AAM Activation Fund builds on the state’s growing impact on the future of the aerial mobility industry. In addition to the first round of funding for this program, the state also recently held its first-ever Uncrewed Triple Challenge, a competition that challenged entrants with using unmanned, autonomous drones to seamlessly transport a package across Michigan. The event resulted in ABJ Drone Techniques’ SiFly Q12, a fully electric multirotor drone, setting a world record by completing the entire 63-mile course while carrying a 10-pound payload and braving wind gusts of up to 32 mph.

To learn more about Michigan's comprehensive mobility and electrification ecosystem, visit www.michiganbusiness.org/mobility.

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 X.

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