Honigman Capitol Report

Whitmer and Trump Meet

Governor Gretchen Whitmer met with President Donald Trump at the White House to discuss bringing jobs back to Michigan, tariffs, Great Lakes protection, and defense investments. This meeting is significant as it's the first known interaction between a high-profile Democrat and Trump at the White House since he took office in January. Whitmer will also attend the U.S. House Democratic Caucus retreat, speaking on a panel with other swing state governors. She aims to share her success in leading a purple state and offer strategies for Democratic electoral success, focusing on legislative achievements and countering Republican misinformation. Despite criticism for not opposing Trump more publicly, Whitmer prioritizes securing federal support for Michigan's key projects, such as the Mundy Township megasite and a new air fighter mission at Selfridge Air Force base. Michigan Economic Development Corporation CEO Quentin Messer Jr. expressed optimism about federal support, noting recent favorable signals from the Trump administration. Whitmer's approach involves maintaining a working relationship with the administration to advance Michigan's interests, despite past criticisms from Trump.

Senate Passes Appropriations

The Senate passed two supplemental appropriations bills, SB 55 and SB 56, for the 2023-24 fiscal year along party lines, with a vote of 19-17. SB 55 allocates $165.6 million, primarily for the Department of Health and Human Services, while SB 56 re-appropriates $3.3 million in federal Coronavirus State Fiscal Recovery Funds for K-12 school aid. Sen. Sarah Anthony (Democrat), chair of the Senate Appropriations Committee, emphasized the technical nature of these bills and expressed optimism about reaching an agreement with the House. She highlighted the importance of closing the books by the end of March to avoid potential credit issues for the state. House Speaker Matt Hall (Republican) criticized the Senate's approach, stating that the House would not take up the supplemental bills. He argued that the House's $20 billion partial budget was intended to ensure essential services and negotiate the budget effectively. Republicans proposed several amendments, all of which failed. These included reallocating funds for local road repairs, addressing pandemic learning loss, banning diversity programs, and revoking incentives for projects like the Gotion electric vehicle battery plant. Sen. Roger Hauck (Republican) proposed funding for a special election in the 35th Senate District, while Sen. Thomas Albert (Republican) sought to remove diversity programs from state universities. The political dynamics reflect a divide between the Senate and House, with ongoing negotiations to finalize the budget and close the fiscal year books.

Buttigieg Out of Senate Race

Pete Buttigieg's decision not to pursue the Democratic nomination for Michigan's open U.S. Senate seat has opened the field for other prominent Democrats. This decision comes as U.S. Sen. Gary Peters is not seeking a third term, creating a significant opportunity in Michigan politics. Among the Democrats considering a run is Mallory McMorrow, a state senator from Royal Oak. McMorrow has expressed gratitude for the encouragement she's received and is expected to announce her decision soon. Meanwhile, U.S. Representative Haley Stevens from Birmingham is actively engaging with communities and stakeholders to build a coalition. She is focused on preparing the necessary resources and momentum for a potential campaign. Kristen McDonald Rivet, a U.S. Representative from Bay City, is also contemplating the race following Buttigieg's announcement. Her focus remains on improving the lives of children and working families, reflecting her past work and campaign themes. Attorney General Dana Nessel is another potential candidate. She is currently considering her next move, with a strong emphasis on protecting Michigan residents from harmful actions by the Trump Administration. Additionally, U.S. Representative Hillary Scholten from Grand Rapids and Abdul El-Sayed, the former gubernatorial candidate and current director of the Wayne County Department of Health, Human and Veterans Services, are also weighing their options. On the Republican side, former U.S. Representative Mike Rogers from White Lake is reportedly close to announcing his candidacy. He has already taken steps by hiring Chris LaCivita, a top advisor from Donald Trump's 2024 campaign, indicating a strategic alignment with conservative values. U.S. Representative John James from Shelby Township and Tudor Dixon, a 2022 gubernatorial candidate, are also considering entering the race. The race is attracting significant attention and the outcome of this race could have substantial implications for Michigan's political landscape and the balance of power in the U.S. Senate.

On Point

Honigman Client Alert: 10 Changes from the Michigan Earned Sick Time Act Amendment

Looking Ahead

On March 12 the Oversight Subcommittee on Corporate Subsidies and State Investments held a hearing on Michigan Economic Growth Authority (MEGA) credits. It is clear based on the questions from members of the subcommittee that these credits are going to be a target. The bipartisan skepticism from the members of the subcommittee on continuing these credits was met with careful guidance from the House Fiscal Agency that this would not only affect the Big 3 but could also affect Tier 1, Tier 2, and Tier 3 suppliers if they were to be eliminated. Another hearing is likely coming soon. No firm proposals were mentioned at the hearing. However, the tenor of the questions posed to the House Fiscal Agency means there will be more to this discussion.