The State Budget Office says a proposal designed to level the playing field between Amtrak and competing bus companies is unconstitutional.
It says the amendment language is not enforceable. The provision is part of a bill intended to adjust the money agencies receive this fiscal year.
State transportation officials are set to give Amtrak $7 million this year. The ruling means it won't have to share.
The train line also could've been forced to cancel its state-subsidized routes.
The proposal approved by the House and Senate awaits Governor Granholm's signature.