LANSING — Governor Gretchen Whitmer delivered a speech at the Michigan Capitol on Tuesday, Sept. 16, urging state lawmakers to reach a budget agreement as the threat of a government shutdown grows. With the fiscal year set to begin Oct. 1, the divided legislature remains far apart on spending proposals, heightening economic instability.
“Failure to act will bring more uncertainty, higher costs, and fewer employment opportunities,” Whitmer stated in Heritage Hall, emphasizing her administration’s focus on economic development and infrastructure improvements. She reiterated that road funding is non-negotiable in any final deal and outlined her own proposal, though she offered limited details on job creation spending. This comes as the state’s primary corporate subsidy fund, used to attract manufacturing investment, nears expiration.
The governor’s address marked her first major public appearance following an overseas trip aimed at attracting foreign capital to Michigan. As she took the stage to applause, Whitmer asked attendees to withhold celebration until a budget is secured.
She highlighted how federal tariff policies have contributed to economic instability, arguing that while targeted tariffs can support domestic manufacturing, the current approach under former President Donald Trump has made businesses hesitant to commit to long-term investments. The Trump administration has defended its trade strategy as a catalyst for revitalizing American industry.
Whitmer initially proposed an $83.5 billion budget in February. The Michigan Senate later approved a nearly $84.6 billion version, but updated forecasts revealed financial strain due to federal tax legislation signed by Trump. Meanwhile, the House passed a $79 billion plan in late August. Whitmer made clear she would not accept the House GOP’s version, calling it incompatible with her priorities.
She expressed confidence that a compromise could satisfy multiple goals: repairing roads, funding free school meals as sought by Senate Democrats, and achieving modest spending reductions desired by House Republicans. “These objectives are achievable. If I receive a bill reflecting shared goals, I will sign it,” she said.
Currently, lawmakers disagree not only on total spending but also on issues like school funding models and how unspent departmental funds are handled—whether they roll over or return to the general fund.
Democratic leaders, including Senate Majority Leader Winnie Brinks and House Minority Leader Ranjeev Puri, attended the speech. Republican counterparts—House Speaker Matt Hall and Senate Minority Leader Aric Nesbitt—were absent. A spokesperson for Whitmer confirmed both were invited. Hall later defended his chamber’s budget stance, claiming billions in wasteful spending were identified. “Senate Democrats haven’t presented a road funding plan,” he said, a point Brinks disputes, noting her caucus supports such investments. Hall expressed optimism about reaching an agreement now that Whitmer has returned.
After the event, Brinks declined to assign blame for the impasse but criticized recurring breakdowns in negotiations with Hall. With Democrats controlling the governor’s office and Senate, she stressed that compromise from House Republicans is essential. “If he refuses to engage constructively, he fails the people of Michigan,” she told reporters.
Whitmer has avoided government shutdowns during her tenure, but this is the first time she faces a split legislature, where each chamber is controlled by a different party. She has previously attributed budget gridlock to political polarization.
— news from Lansing State Journal
— News Original —
Whitmer: Trump tariffs inject uncertainty into Michigan economy as budget deal brews
LANSING — Gov. Gretchen Whitmer implored lawmakers to come together to reach a state budget deal during a speech at the Michigan Capitol Tuesday, Sept. 16, as the possibility of a government shutdown looms with a divided Michigan Legislature far apart on competing spending proposals. n n”Failing to get this done means more uncertainty, higher costs and less jobs,” Whitmer said in a speech at Heritage Hall in the Capitol, during which she emphasized once more that her key spending priorities include economic development and road repairs. She has previously said that there is no budget deal without road funding and has outlined her own plan. She provided few specifics on what state spending on job creation might look like with the state ‘s largest corporate subsidy fund used to lure new manufacturing jobs to the state set to expire. n nHer speech marks her first major public appearance after returning from international travel meant to secure foreign investments in Michigan. When Whitmer took the podium to a standing ovation before beginning her speech, she told the crowd to save their applause until she and lawmakers secure a state budget deal. n nHer speech focused broadly on economic uncertainty she said stems from tariff policies and the state budget. “This is a man-made storm of uncertainty that hits Michigan harder,” she said. n nShe said that uncertainty threatens her economic development strategy to retain and bring jobs to the state. n n”When used strategically and precisely, tariffs can encourage companies to build and create jobs in America and benefit a place like Michigan,” she said. But she criticized the implementation of new tariff policies, saying they have made companies skittish about investment decisions. President Donald Trump ‘s administration has defended its economic approach — including its trade policies — as a way to bring about a manufacturing renaissance. n nThe state ‘s fiscal year begins on Oct. 1, giving lawmakers and the governor until the end of September to reach a budget deal. But under Michigan law, lawmakers must send a budget to the governor ‘s desk by July 1, a deadline lawmakers failed to meet this year. But the law is toothless, imposing no punishment on lawmakers for missing the deadline. n nWhitmer unveiled an $83.5 billion state budget recommendation in early February. The Michigan Senate passed a nearly $84.6 billion budget in May, before subsequent economic forecasts showed a major fiscal hit to the state from the federal tax and spending bill Trump signed into law. The Michigan House passed its budget in late August, totaling nearly $79 billion. n nWhitmer eliminated any doubt that she might approve the House GOP ‘s spending plan, stating unequivocally in her speech that it was a non-starter for her. n nWhitmer said a budget compromise can deliver on her priorities, such as fixing the roads, Senate Democrats’ goals including funding for free school meals and House Republicans’ hopes, such as cutting state spending. “All of that is doable. If the Legislature sends me a bill that reflects these shared priorities, I will sign it,” she said. n nFor now, not only do lawmakers remain far apart on the size of the budget, they have picked a slew of budget fights from how to structure school funding to the unspent money state departments have carried over from one year to the next instead of lapsing back into the state ‘s general fund, the state ‘s pot of money for funding a wide range of government activities. n nBoth Democratic legislative leaders — Senate Majority Leader Winnie Brinks, D-Grand Rapids, and House Minority Leader Ranjeev Puri, D-Canton Township — sat in the front row for Whitmer ‘s speech at the Michigan Capitol. Their GOP counterparts — House Speaker Matt Hall, R-Richland Township, and Senate Minority Leader Aric Nesbitt, R-Porter Township — were not spotted. Whitmer press secretary Stacey LaRouche said that the pair of GOP legislative leaders were invited to the speech but did not attend. Nesbitt spokesperson Jeff Wiggins did not immediately respond to a request for comment. n nHall, in a statement, defended House Republicans ‘ approach to the budget. “House Republicans identified billions of dollars of waste,” he said. “Democrats say there is zero waste in the state ‘s $80 billion budget, but that ‘s not true.” He said Senate Democrats haven ‘t put a road funding plan on the table, a frequent criticism to which Brinks has maintained road funding is a goal Senate Democrats share. “Now that Gov. Whitmer is back from her travels and we can work through this, I think she and I can strike a deal,” Hall said. n nMore: Vice President JD Vance to visit Michigan on Sept. 17 n nFollowing Whitmer’s speech, Brinks declined to speculate on who would bear blame in the event of a government shutdown. n n”Listen, nobody should be proud of the position that we are in at this point, barreling toward that is completely unnecessary,” she told reporters. n nBut she expressed frustration over what she described as a pattern in her negotiations with Hall in which agreements that appeared to be reached kept falling apart. Noting that Democrats control the governor ‘s office and the Senate, Brinks said that Hall needs to compromise. “If he is unwilling to do that, he is not doing his job for the people of Michigan,” she said. n nWhitmer has never had a government shutdown under her watch. But she faces a new dynamic in Lansing. While Whitmer has served as governor when Republicans and then Democrats controlled both chambers of the Michigan Legislature, she has never dealt with a divided Legislature with one party controlling one chamber and the opposing party controlling the other. Whitmer has previously blamed polarization for the budget stalemate.