Great Lakes Wire

After the Michigan Legislature failed to reach a final budget agreement before the start of the new fiscal year, both the Senate and House approved a temporary funding measure to keep state government operations running until October 8. The continuation budget was signed by the Governor early Wednesday morning, following a four-hour period during which the state was technically without an active budget.

The Senate passed its version of HB 4161 around 1:33 a.m., dividing Fiscal Year 2025 spending into weekly increments. Senators Jonathan Lindsey (R-Coldwater) and Jim Runestad (R-White Lake) voted against the measure, while John Damoose (R-Harbor Springs) and Michele Hoitenga (R-Manton) did not vote. The bill received immediate effect.

Senate Majority Leader Winnie Brinks (D-Grand Rapids) addressed reporters after the vote, stating, "I certainly wish we weren’t here in this moment tonight, but I think the important thing to remember is that we were able to come to an agreement, even in a time like this with divided government, we will be keeping government services open."

Legislative sources indicated that a full Fiscal Year 2026 budget deal has been reached in principle and is expected to be finalized and sent to the Governor by next Tuesday.

In the House, members concurred with the Senate’s changes on a 103-4 vote. Representatives Steve Carra (R-Three Rivers), James DeSana (R-Carleton), Jaime Greene (R-Richmond), and Tom Kunse (R-Clare) voted against it. Three Democratic representatives were absent for the vote.

Minority Leader Ranjeev Puri (D-Canton) commented after passage, "This whole budget process has been highly unusual." Representative Alabas Farhat (D-Dearborn) noted that House Democrats' votes were essential for passing the bill.

Majority Floor Leader Bryan Posthumus (R-Rockford) explained that passing this measure allows time for legal review as requested by the Governor. He clarified that while there are expectations for another vote Thursday on a final bill, procedural timing could delay action further.

The Governor's signature ended what amounted to a brief shutdown period where no significant interruptions occurred in state services.

At the federal level in Washington D.C., lawmakers faced their own impasse as U.S. Senate Democrats refused to support a continuing resolution due to opposition over health care cuts included in recent legislation referred to as “One Big Beautiful Bill.” Both of Michigan’s U.S. Senators voted against advancing funding measures needed to avoid a federal government shutdown.

U.S. Senator Elissa Slotkin (D-Holly) stated her concerns about rising health care costs: "Republicans control the White House, Senate, and the House, so I understand that negotiations won’t yield everything I want. But serious adults can sit down, negotiate in good faith and pass a budget," she said. "The President has shown time and again that he thinks he can do whatever he wants, in violation of the Constitution. So whatever deal is eventually struck, I’ll need to see the details laid out in black and white."

U.S. Senator Gary Peters (D-Oakland County) highlighted his focus on affordable health care access: "In my first term in the U.S. House of Representatives, I fought tooth-and-nail to pass the Affordable Care Act... We must take action to ensure families can continue to afford their health care." He added criticism of recent Republican actions: "This is especially important after Republicans and President Trump passed their so-called ‘Big Beautiful Bill,’ which will rip health care coverage from hundreds of thousands of Michiganders... No one wants a government shutdown, but health care premiums are estimated to double..."

Peters concluded his remarks by emphasizing bipartisan cooperation: "Michiganders elected me to fight for them. I stand ready to work with my colleagues on both sides of the aisle..."

For more information or updates related to these developments or resources available for small businesses navigating these changes, visit SBAM’s news section online.