The Legislature established the Veterans Trust Fund with a transfer of $50 million of investments from which earnings are to support the Veterans Trust Fund operations. The Legislature twice returned part or all of these investments to the General Fund and replaced the earnings with General Fund appropriations.

The Veterans Trust Fund, utilizing approximately $4 million of interest earnings from the trust, administers two grant programs - - the Emergency Grant Program and the Tuition Grant Program. Emergency grants are available to war time veterans and their dependents during times of personal emergent need. This program is administered through local Veterans Trust Fund county committees appointed by the Veterans Trust Fund Board of Trustees. The Tuition Grant Program dates back to 1935 and has been administered by the Veterans Trust Fund since 1966. Tuition grants are available to sons and daughters of totally disabled or deceased service-connected veterans attending Michigan institutions of higher education.

Veterans Trust Fund grant policies and adjudication, county committee appointments and expenditure from trust earnings are governed by a seven-member, governor appointed board of trustees nominated by statutorily designated state veterans service organizations for staggered three-year terms.