AAM Statewide Mobility Challenges

On July 17, 2025, Michigan established the Michigan AAM Initiative as 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 our workforce, manufacturers, and infrastructure as national assets in the deployment of AAM technologies. This Initiative will support the Unleashing American Drone Dominance Executive Federal Orders from June of 2025.

The Office of Future Mobility and Electrification (OFME) accelerates the development, testing, and deployment of AAM technologies. The AAM Statewide Mobility Challenges are part of OFME's broader strategy to attract and retain high-growth mobility companies by connecting them with state stakeholders who are seeking innovative solutions to address agency challenges.

Consistent with the Federal Executive Order prioritizing American drone manufacturing, proposals showcasing a commitment to building and expanding drone production within Michigan will receive priority consideration. To be eligible, applicants must work with the relevant state agency (MSP, DNR, MDOT, EGLE, MDARD), propose a project that solves identified state department challenges, and provide matching funds in the form of in-kind contributions or financial resources. These criteria ensure projects deliver direct economic benefits to Michigan and solidify the state's leadership in AAM technologies. Applicants are not required to be Michigan-based, but their application must include a clear plan for growth within the state of Michigan.

The proposed projects must demonstrate:

Technology Focus: The project must demonstrably leverage AAM technologies, including but not limited to unmanned aircraft systems (UAS), advanced sensors, AI-powered analytics, and innovative aviation platforms. Proposals should clearly articulate the specific AAM technology being utilized and its relevance to the proposed solution.

Interoperability: The proposed project must demonstrate a clear ability to integrate seamlessly with existing technologies, systems, and infrastructure currently utilized by the relevant state department(s). Proposals should describe in detail how the new technology will interact with existing assets, ensuring compatibility and minimizing disruption to ongoing operations.

Problem Solving: The project must directly address a clearly defined and significant challenge faced by one or more of the participating state departments. The proposal must include a description of the problem and how the proposed AAM solution will effectively address it.

Michigan Benefit: The project must provide clear and direct economic benefits to the State of Michigan. This can include job creation, workforce development, cost savings for the state government, improved efficiency of state services, or attraction of additional investment to the state. Proposals should include quantifiable metrics to demonstrate the anticipated economic benefits.

Deployment Plan: The project must include a detailed deployment plan, outlining proposed location(s) within Michigan where the project will be implemented, the timeline for deployment, and the necessary infrastructure and resources required for successful implementation. The deployment plan must comply with all applicable federal, state, and local regulations related to aviation and UAS operations.

Matching Funds Commitment: The proposal must include a firm commitment of matching funds, in the form of in-kind contributions or financial resources. The source and nature of the matching funds must be clearly documented in the proposal, including letters of commitment from funding sources. In-kind contributions must be valued at fair market value and documented appropriately.

Scalability and Sustainability: The project should demonstrate the potential for scalability and long-term sustainability beyond the initial pilot phase. Proposals should address how the project's results can be replicated and expanded to other state departments or applications and how the project will be sustained financially and operationally after the grant funding ends.

Proposals will be evaluated and scored by a review committee on a best value basis, using the following criteria:

• Description of proposed project
• Alignment with state goals:
  • Leverage AAM technologies to solve agency problems more efficiently and innovatively
  • Drive Public-Sector Use and Commercial Market Growth in Michigan
  • Activate Production Capacity
  • Build Public Understanding of AAM Technologies
• Capacity and experience of the team
• Financial sustainability of the project after the demonstration period
• Interoperability with other technologies
• Matching funds requirement
• Overall quality of the proposal
• Cost of the proposed project

Note: The criteria listed above are not in priority order.

• Review the MSP Frequently Asked Questions document.
• Review the DNR Frequently Asked Questions document.
• Review the MDOT Frequently Asked Questions document.
• Review the EGLE Frequently Asked Questions document.
• Review the MDARD Frequently Asked Questions document.

If you have questions related to statewide mobility challenges, please email OFMEMobilityChallenges@nextenergy.org. All questions will be added to an FAQ section that will be available on this page in the near future.