Early September 2025 Newsletter

House Republicans Pass Budget
A spending plan with cuts in nearly every department passed the House on Tuesday quickly after it was presented for the first time following weeks of Democrats calling on majority House Republicans to show their cards on the budget.

The House Republican budget makes cuts to almost every budget area, despite objections from Democrats.

HB 4706 includes the House Republican proposal for the state's departments and agencies. It totals $54.6 billion ($12.09 billion General Fund). The Executive Office, Legislature, Department of Auditor General, Department of Military and Veterans Affairs and Department of Transportation are the only areas that wouldn't be cut under the plan.

The bill passed 59-45. Rep. Karen Whitsett, D-Detroit, voted with the Republican majority.

"We've been hounded by the press, by the Senate – we've said, the governor's said, show us your roads plan," House Appropriations Chair Rep. Ann Bollin, R-Brighton, said. "Well, guess what, they have our whole budget now. We did it. … We're not budging as much as they're going to have to budge if they want to get a budget done."

Coupled with the spending plans for community colleges, higher education and K-12 schools, the Republican budget proposal is nearly $79 billion. The budget passed by the Senate totaled $84.6 billion, and the executive recommendation proposed by Gov. Gretchen Whitmer totaled $83.5 billion.

The spending plan was voted on within the of being released publicly.

House Republicans acted well after the July 1 statutory deadline for a budget to be signed into law. The move comes after weeks of Democrats and other stakeholders calling for a Republican budget so negotiations could begin in earnest.

Also on Tuesday, a little over a month until the end of the fiscal year, Gov. Gretchen Whitmer, House Speaker Matt Hall R-Richland Township, and Senate Majority Leader Winnie Brinks, D-Grand Rapids, met on the budget.

The House Republican plan does boost road funding by more than $3 billion or 50 percent. Republicans also moved to require departments to prioritize in-person work, report on severance pay to top officials and provide information on work project status.

Some of the larger cuts are for the Department of Attorney General (down $38.4 million, a 29.6% reduction), Department of Environment, Great Lakes and Energy (down $200 million, a 19.2% reduction) and the Department of Labor and Economic Development (down $1.1 billion, a 46.7% reduction).

The Department of Health and Human Services is split into three categories: Medicaid, Public Health and Human Services. All saw cuts, The Medicaid portion of the budget was cut by $3.7 billion, the Public Health portion $92.5 million and the Human Services portion by about $1 billion.

The budget would cut grant programs and the Strategic Outreach Attraction and Reserve Fund. It also eliminates 4,300 unfilled positions, which House Republicans say will free up $560 million, and it requires state employees to return to in-person work.

Additionally, the budget cut the Department of Corrections (down $28.5 million or 1.3%) and the Department of State Police (down $66.3 million, or 7%).

House Democrats criticized the process.

"This has to be the least transparent budget that I have even been a part of, which is more than ironic coming from a speaker who prided himself on being very transparent," House Minority Leader Rep. Ranjeev Puri, D-Canton Township, said. "There was no time for us to review an 800- page document to understand what we were voting on. …They didn't allow HFA to give us a full analysis, so we have not been able to review that. This was very authoritarian in terms of how this was presented to us."

Rep. Alabas Farhat, D-Dearborn, former minority vice chair of the House Appropriations Committee , said the process needed to be better.

"The speaker continues to operate in a silo in the four walls of his office, not engaging with Democratic values at all, with the Senate or the governor," he said. "The governor and (Senate Majority Leader) Winnie Brinks are ready to negotiate a budget and to avert a government shutdown, and you've seen the speaker instead come out and slam the governor for her inaction … on a 'road funding plan for over two terms.'… Democrats are ready. We're here. They can reach out to us."

House Republicans defended the process, saying they held 137 hours of public testimony on the budget, though much of that testimony was dedicated to legislative earmarks.

"We went through the budget, and we eliminated the waste, fraud and abuse in government," Hall said. "Our subcommittee chairs have never been more engaged in the process. … I would just say, as we're going forward, (legislative Democrats are) a very negative group of people that have no intention of advocating for a position or supporting any budget. We couldn't even find a vice chair of the Appropriations Committee on the Democrat side who wants to solve problems an get a budget done, so we just said, look, this committee's broken. We're going to move forward with the budget because the people of Michigan expect this budget to be done on time."

Bollin said transparency looked different during this budget process.

"We have hearings almost every single week. Hearings that ask questions about programs, about projects, not about where you want to go and where you want to spend more but really getting into the meat and potatoes of whether or not these programs and projects are delivering," she said. "Does that transparency look a little different on the budget? Yes."

House Republicans touted their spending plan as including $3.1 billion for roads, eliminating taxes on tips and overtime, including $140 million for new public safety investments and making more than $5 billion in cuts.

"Our budget plan transitions Michigan from a status quo to a let's go for the taxpayers," Bollin said during a floor speech. "Instead of adding 3 or 4% to last year's top line, we poured through it, line by line. We asked tough questions about what was working, what wasn't working. We followed the money. We shined a light on the prices for tax dollars were being wasted and abused."

House Democrats objected strongly to House Republican's proposal.

"Who are we defending in this budget?" Farhat said during a floor speech. "Are we defending the working families of our state?... Or are we trying to defend special interest of the state … when I look at this document that we got about an hour ago, I can only see how much further we're allowing our state to slide back into a position of mediocrity instead of leading."

House Democrats did not say they were against any cuts, though.

"We're all for efficient, effective government," Farhat said. "We're all for making sure that we're delivering the highest level of customer service every single day for Michiganders. …That's what we all stand for here. We all believe that government can be the best through staunch accountability."

In the Department of Corrections budget, the House cuts funding for higher education, transitional housing development and does not include any funding for reimbursing ambulance service providers. Elsewhere in the General Fund budget, however, $6 million in unexpended funds from work projects are made available in the Department of Technology, Management andBudget to compensate ambulance providers (editor's note: an earlier version of this story incorrectly stated the status of emergency service reimbursements). The Corrections budget also includes $50 million in General Fund dollars to provide pay increases for corrections officers.

House Republicans said their budget will protect Supplemental Nutrition Assistance Program and Medicaid.

"What we did with Medicaid is we said, let's tailor Medicaid to make it work so that everyone who's eligible can continue to use Medicaid," Hall said.

Hospitals criticized the House budget.

"The proposed state budget from the Michigan House of Representatives guts hospital funding and would be disastrous if even a semblance of the cuts eventually makes it into the state budget," said Brian Peters, CEO of the Michigan Health and Hospital Association, in a statement. "Michigan hospitals already stand to lose more than $6 billion over the next ten years due to federal budget cuts. Slashing more funding that supports delivering healthcare services and the nurses, physicians and other staff employed by hospitals harms Michigan and our more than 10 million residents."

Hall defended cuts to rural hospitals

"Our budget funds $250 million for rural hospitals, and they know that," he said. "I would caution the hospitals. They're really getting a little too political and they're siding too much with the Democrats… I really think they should pick their battles because everything they say is going to put them out of business."

On the cuts to State Police, House Republicans said they wanted to invest in local police because of the controversy with the Director James Grady.

"We're trying to make investment in local police and county sheriffs so that they can go and lower our violent crime rates," Hall said.

House Democrats, however, are already accusing potentially vulnerably House Republicans who voted for the proposal of defunding the police.

A Whitmer spokesperson for Brinks addressed the meeting with Hall on the budget ahead the House's action.

"It was a productive meeting, and our team will stay in close touch with legislators and their staff over the next month to get this done," a spokesperson for Whitmer said before the House acted on its plan.

Brinks, also before the House presented then passed its proposal, said she has made her frustrations about a lack of proposal heading into September "abundantly clear."

"It's 36 days until October 1, and we have a lot of work to do," she said. "It's work that we can accomplish, but the games and distractions need to end."

Whitmer Calls for Early 2026 Special Election in 35th Senate District
After nearly eight months and regular calls by Republicans and even some Democrats to call a special election for the vacant 35th Senate District seat, Governor Gretchen Whitmer finally made the announcement Friday, calling for a special primary and a special general election.

With the directive for a special election on Friday, Whitmer ended the nearly 250-day period of uncertainty since U.S. Rep. Kristen McDonald Rivet, D-Bay City, resigned from the Senate on January 3 before being sworn into Congress.

The special primary election was set for February 3, 2026, and the special general election was set for May 5, 2026.

In Whitmer's letter to the Department of State, the deadline for filing for the race was set at 4 p.m. on September 30.

"Today, I am calling a special election for the 35th Senate District that represents parts of Bay, Midland and Saginaw counties," Whitmer said in a statement. "We have a lot of good work to get done before the end of next year. Michiganders want us to create jobs and grow the economy, invest in schools and boost literacy rates, and, of course, fix those damn roads. I look forward to working with the next state senator from this district to tackle these issues and more."

The delay in calling the special election prompted repeated attacks from Republicans throughout the year, pointing to past precedent in which special elections have typically been called within days or a few weeks.

Senate Minority Leader Aric Nesbitt, R-Porter Township, in a statement took aim at the delay from Whitmer and the effect it has had on residents of the district.

"The 270,000 people of Michigan's 35th Senate District are struggling to make it in Michigan, and for over 400 days, they will be without a state senator to fight for them," Nesbitt said. "This is a complete failure of leadership from the governor, who should be ashamed for abandoning these hardworking families."

More recently, several residents of the district filed a lawsuit with the Court of Claims seeking an order compelling Whitmer to announce the special election.

On Thursday, Whitmer filed a response asking for summary disposition in the lawsuit, saying the plaintiffs have no standing and that the constitutional separation of powers prevents courts from being able to issue mandamus or injunctive relief against a sitting governor (See Gongwer Michigan Report, August 28, 2025).

Friday's call for the special election likely makes the lawsuit moot.

It also raises the question of who might file ahead of the September 30 deadline for the special election.

Three Democrats have already filed to run for the seat: Saginaw County Democratic Party Chair Brandell Adams of Bridgeport Township, Chedrick Greene of Saginaw and Board of Education Chair Pamela Pugh of Saginaw.

Rep. Timmy Beson, R-Bay City, announced in late 2024 he was going to run for the seat.

There has also been speculation that Rep. Bill Schuette, R-Midland, might enter the race. In a Friday statement, Schuette called Whitmer's timing for the elections a "case of politics at its worst."

"We will have an opportunity to elect leaders who will fight for more accountability in government and better performing schools, a more affordable economy and a stronger state," Schuette said. "Change is ahead. In the coming days, I look forward to announcing how I plan to serve the people of our state and work collaboratively to solve the serious issues we face."

The response from both sides of the political aisle to the announcement was swift in a flurry of statements.

"We are excited to elect another Democrat to fill the very large shoes left by Congresswoman Kristen McDonald Rivet," Michigan Democratic Party Chair Curtis Hertel Jr. said. "Unlike Republicans, Michigan Democrats are a party by and for working Michiganders, and we stand ready to elect another champion for the families of the 35th Senate District. Game on."

Greg Manz, a consultant with communications firm Wytherson Media who previously worked for the House Republican Campaign Committee and as press secretary for House Speaker Matt Hall, R-Richland Township, took aim at the Democrats. He called the timing of the announcement a public relations disaster for Democrats.

"Republicans will flip this Senate seat not only because of the disrespect Governor Whitmer has shown to 270,000 Michiganders but also because Senate Democrats' priorities are out-of-touch as demonstrated by their bloated bureaucratic Big Brother budget," Manz said.

Sen. Darrin Camilleri, D-Trenton, chair of the Senate Democratic caucus's campaign committee for the 2026 cycle, welcomed the news.

"It's an opportunity to show our Republican colleagues, from Donald Trump down to Lansing, that their agenda is out of step with Michigan families," Camilleri said. "This election will be a chance to hold them accountable and keep Michigan moving forward."

Sen. Roger Hauck, R-Mount Pleasant, said the governor's decision was a political move that has done a disservice to the people of the 35th district.

"Let's not pretend that finally calling the election was about principle – it was about politics from the very beginning," Hauck said. "Her long-overdue action today doesn't erase the months of neglect, the voices that went unheard, or the purely political display. I'm glad the people of the 35th District will finally get their seat back. But the delay speaks volumes."

Michigan Forward Network spokesperson Mary Drabik agreed.

"Whitmer chose to ignore the district residents for months with vague commitments, only to leave them without representation for over 500 days by the time the election is certified," Drabik said. "This egregious inaction is a new low for Gretchen Whitmer."

The 35th Senate District consists of parts of Bay, Midland and Saginaw counties and is one of the most evenly split and competitive Senate districts in the state.

Democrats hold a 19-18 majority in the Senate. If the Republicans were to win the seat there would be a 19-19 tie and Democrats would need the lieutenant governor to serve as a tie-breaking vote.

House Cuts to MIDOCS Program Stuns Physicians. They Warn of Serious Consequences
The House Republican budget makes cuts to nearly every department budget, and the Department of Health and Human Services was no exception.

One of the programs cut was the MiDOCS program, which supports medical doctors through tuition loan relief for services provided in underserved and impoverished communities in the state.

"The MIDOCs program has proven to be one of Michigan's most effective tools for addressing physician shortages, with 94% of participating doctors continuing to practice in the very communities where they trained," said Dr. Amit Ghose, president of the Michigan State Medical Society. "It is money effectively and efficiently spent, and cutting our state's funding would reduce residency slots and loan repayment support, hurting Michigan's ability to recruit and retain doctors in underserved areas."

Dr. David Walsworth, also of the Michigan State Medical Society, said although he understood the state only has so much money to spend, the MiDOCS program did not make sense to cut.

"It's been very successful," he said. "94% of the docs have stayed in their communities… these are the rural counties where we desperately need people."

Additionally, the MiDOCS program helps physicians that are going into areas that have less earning potential, such as family medicine and psychiatry, Walsworth said.

"These are often people who are first generation in medicine. They may have been the first generation in their family to go to college. These are the people who look like the patients they're going to see, and that's a very powerful thing," Walsworth said.

The House version of the Department of Health and Human Services budget is split into three categories: Medicaid, Public Health and Human Services. All saw cuts. The Medicaid portion of the budget was cut by $3.7 billion, the Public Health portion $92.5 million and the Human Services portion by about $1 billion.

The MiDOCS program falls under the Human Services portion of the budget.

Over 90% of Michigan's 83 counties have at least a partial designation as a primary care health professional shortage area (HPSA), according to the MiDOCS state report from 2024.

In 2017, the Legislature appropriated $500,000 in funds to develop an implementation plan, which included proposals from Central Michigan University, Michigan State University, Wayne State University and Western Michigan University for increasing residency slots to address the needs in their communities. Since then, $27.9 million of state appropriations, combined with contributions from the institutions and associated federal funds, have been used to create 124 new residency slots, according to MiDOCS

Funding from the state is combined with university contributions and associated federal funds to create 24 new residency slots for the program. To leverage state funding, the MiDOCs institutions work closely with the Department of Health and Human Services each year to obtain federal matching funds.

"It has three sources of funding, and all of those are at risk right now," Walsworth said. "There's only so much money to go around…I started ringing the alarm bell several months ago because I anticipated where we'd be at."

MiDOCS is a relatively small program, Walsworth said, but it does a lot and is consistently something the Medical Society advocates for to lawmakers.

"This has largely been supported in a bipartisan fashion in the past," he said. "MiDOCS is a program… that tries to address the ongoing physician shortage of that we have."

The House has frequently discussed the shortage of medical professionals in Michigan this term and has moved bills to relax licensing requirements and increase scope of practice for nurse practitioners (See Gongwer Michigan Report, May 14, 2025).

Walsworth said he would urge lawmakers to continue funding the MiDOCS program, even if it's just at current levels.

"There's a lot of things that can still happen and hopefully will, he said. "(MIDOCS) is doing a lot… Two-thirds of practicing physicians are at or near retirement age…How are they going to explain to their constituents when they don't have a doctor?... The people of Michigan deserve better."

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