The University of Michigan provided more than $32 million in financial support to the city of Ann Arbor in fiscal year 2025, averaging $22.8 million annually over the past five years, underscoring the university’s long-standing commitment to the community. This is in addition to investments in other area communities.
The contributions, spanning infrastructure partnerships, service payments, capital investments, and community initiatives, help support essential city services, public safety improvements, and shared priorities that benefit residents, students, employees, and visitors alike.
“We’re proud to be woven into the fabric of Ann Arbor and our neighboring communities,” said Chris Kolb, U-M’s vice president for government relations and an Ann Arbor native. “The university and the city share a common goal: to make our community a place where people can live, work, and thrive together. These investments reflect that spirit of partnership in action.”
A significant portion of the university’s support comes through collaborative infrastructure projects that improve mobility, accessibility, and safety across the city. For projects located alongside university property, U-M has provided substantial support, in some situations covering as much as 50% or more of improvements that serve the broader community.
“The city and the university have developed a strong working partnership,” said City Administrator Milton Dohoney Jr. “We are in ongoing dialogue with each other about mutual interests. That has translated to the city receiving financial participation on a wide range of projects. Some of those projects address full community benefits like Bicentennial Park, while others address infrastructure needs in specific parts of the city.”
One example is the recent State Street reconstruction project, which introduced the first dedicated bus-only lane in the city and county.
The university is also partnering with the city of Ann Arbor and the Michigan Department of Transportation on the Packard Street Lighting Project, contributing more than $1 million toward pedestrian-focused lighting between State Street and Stadium Boulevard. The upgrades are designed to improve visibility and safety along one of the city’s busiest routes for students and residents.
Additional university-supported pedestrian and traffic safety initiatives are underway across Ann Arbor, reflecting ongoing coordination between university planners and city officials to address shared transportation needs.
Another recent major collaboration was the city’s East Medical Center Drive Bridge and Road Expansion, a critical route serving Michigan Medicine and the nearby area. U-M contributed $7.3 million toward the $11.6 million project, which covered approximately 63% of the project and improved travel efficiency and safety for patients, visitors, employees, and community members.
Supporting community life
University partnerships also extend beyond infrastructure to initiatives that enhance quality of life throughout the city.
With $132,000 in university support, Ann Arbor piloted upgraded, accessible public restroom trailers in downtown areas and community parks to address growing demand for public facilities.
In recognition of Ann Arbor’s Bicentennial celebration in 2023, U-M contributed $425,000 to support community events and park improvements enjoyed by residents across the city.
Some projects are supported through the university’s community fund, a voluntary funding mechanism created to provide annual support for initiatives identified in partnership with city and community leaders.
Kolb, a longtime Ann Arbor resident, developed the community fund alongside the Office of the Executive Vice President and Chief Financial Officer. Funding decisions are jointly overseen by the two offices to ensure alignment with community priorities and responsible stewardship of university resources.
“As we look ahead, U-M remains deeply committed to being a trusted partner and a good neighbor,” said Bobby Hewlett, interim executive vice president and chief financial officer. “Through the community fund and other initiatives, we steward our resources to benefit not only the state as a whole, but also our local communities.”
The community fund represents one component of the university’s broader contributions. The overall $32 million in annual support also includes payments related to water and sanitary services, public safety and emergency response services associated with athletic and special events, and other operational expenses tied to university activity within the city. Together they reflect U-M’s role as an active civic partner committed to strengthening the community it shares with local residents, in the city and with other communities.
In December 2025, the university awarded $450,000 in community fund grants to nonprofit organizations serving residents across Ann Arbor, Ypsilanti, Ypsilanti Township, Washtenaw County, and Detroit. These organizations help address critical needs including food security, health care access, education, housing stability, and economic development.
This marked the second time in three years the Office of the Vice President for Government Relations has coordinated regional nonprofit support through the community fund. The effort complements additional philanthropic initiatives across the university, including the annual University of Michigan United Way campaign, which raises more than $1 million each year for regional human service organizations.
Michigan Medicine advances community well-being through annual investments in local organizations and the delivery of substantial non-compensated health care services across Southeast Michigan. In FY ’25, Michigan Medicine provided more than $737 million in community benefits, including $469 million in charity care and other and unreimbursed care and $259 million supporting training, research, outreach, community programs and programs statewide.
“Our contributions reflect a spirit of partnership that has defined U-M’s relationship with the community for more than 200 years,” Kolb said. “It’s a reminder that our success is deeply connected to the success of our community.”
As the university moves into the future, investments, from infrastructure and safety improvements to nonprofit partnerships and community services, reinforce a shared commitment to ensuring the community remains a vibrant and welcoming place for all.
David Gregorka
This is a shameful “commercial” filled with 1/2 truths and distortions. The bridge project was to benefit the medical center, yet the city unnecessarily spent $4 million on the project. Rather than paying the full cost of sewer upgrades for the new dorms (like everyone else does), the city is paying $1-2 million of the cost, rather than the u paying the full cost. Btw—the amount the u is paying is not a contribution! It’s a required fee for services. I’m surprised the u didn’t claim their water/sewer bill as another contribution! The u has traditionally underpaid their fair share for fire protection for many many years, although it has improved. Maybe pay back all those missed payments? The city continues to repave streets that are surrounded by u property while letting neighborhood streets across the city crumble. And on and on and on. They also blatantly disregard city zoning regulations and noise ordinances related to their construction projects with impunity. And then, with the other hand, the benevolent u continues to take more and more property off the tax rolls. I can’t believe The Observer published this one sided, inaccurate PR piece.