Gov. Gretchen Whitmer has signed a new executive order to establish the Michigan Advanced Air Mobility (AAM) Initiative, designed to scale the state’s capabilities, ensure safe and efficient integration of these technologies across public and private sectors, and position the workforce, manufacturers, and infrastructure as national assets in the deployment of these technologies.
In conjunction, four new projects will receive more than $4.1 million in total funding to scale AAM research and infrastructure through the second round of the state’s AAM Activation Fund.
“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,” says 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 Corp. (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.
The AAM projects receiving funding will address critical delivery needs in health care, 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 seeks to create a centralized pipeline of projects that can accelerate AAM readiness and growth in the state.
The first round of funding, totaling more than $6 million, was launched in July 2024.
The four new projects (second round) receiving funding include:
CVS Health ($1.5M – Troy)
Michigan will be the first state to support CVS Health’s drone initiative, which seeks 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.
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 ($1M – Ann Arbor)
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 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 with wind gusts of up to 32 mph.
To learn more about Michigan’s comprehensive mobility and electrification ecosystem, visit michiganbusiness.org/mobility.
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