Treasury: Grants Available for Financially Distressed Cities, Villages and Townships

Cities, villages and townships experiencing financial struggles can now apply for a grant through the Michigan Department of Treasury (Treasury) to help fund special projects and free up tax dollars for important services.

Applications are now being accepted for the Financially Distressed Cities, Villages and Townships (FDCVT) grant program. Municipalities interested in applying for a grant must submit applications to Treasury by 11:59 p.m. on Friday, January 30, 2026.

All cities, villages and townships experiencing at least one condition of "probable financial distress" as outlined in the Local Financial Stability and Choice Act are eligible to apply for up to $2 million. A total of $2.5 million in funding is available for Treasury to award through the FDCVT grant program for the 2026 fiscal year.

Grant funding may be used to pay for specific projects or services that move a community toward financial stability. Preference will be given to applications from municipalities that meet one or more of the following criteria:

• A financial emergency has been declared in the past 10 years.
• An approved deficit elimination plan for the General Fund is currently in place.
• Two or more conditions indicating "probable financial distress" currently exist.
• The fund balance of the General Fund has been declining over the past 5 years and the fund balance is less than 3 percent of the General Fund revenues.

Due to requirements outlined under state law, school districts are not eligible for funds from this grant program.

For more information about the FDCVT grant program or to download an application, go to www.michigan.gov/revenuesharing.