LANSING, Mich.—Susan Corbin, Director of the Michigan Department of Labor and Economic Opportunity (LEO), responded sharply to the Michigan House Republicans’ proposed $78.5 billion budget, warning of severe consequences for workers and communities.
“This budget proposal delivers a damaging setback to employers, working families, and vulnerable residents across Michigan,” Corbin stated. She stressed that the plan threatens fundamental worker protections and access to career development resources essential for economic mobility.
The proposal includes eliminating hundreds of LEO staff positions and slashing approximately $1.13 billion—47%—from the department’s total funding. Such reductions, she warned, would trigger widespread repercussions throughout the state’s economy, weakening support systems and limiting job creation.
Additionally, the plan would block LEO from utilizing around $340 million in federal funds designated for programs like unemployment insurance and services for individuals with disabilities, including those who are blind or visually impaired.
At a time of national economic instability fueled by federal tariff policies, these cuts could lead to immediate layoffs and long-term setbacks for both families and businesses. Rather than advancing workforce development and access to quality employment, the budget risks reversing progress across the state.
Key projected outcomes of the House-passed budget include:
– Discontinuation of the Michigan Going PRO Talent Fund, which supports workforce training, particularly for small businesses. In 2025, the program assisted 942 companies with $56.9 million, enabling training for over 30,000 workers.
– Termination of expanded Registered Apprenticeship initiatives, affecting roughly 2,000 workers and 150 companies by halting structured skill-building programs that ensure safety and strong returns on investment.
– A loss of $130 million in federal authority for the Unemployment Insurance Agency, delaying modernization of outdated systems, increasing operational costs, and impairing services for claimants and employers.
– Significant reductions in funding for Michigan Rehabilitation Services and the Bureau of Services for Blind Persons, leaving approximately 8,000 individuals with disabilities without critical support for employment or independence.
– Sharp cuts to MIOSHA, reducing workplace inspections and safety training by about 40%, thereby increasing risks for employees across the state.
– Potential violations of multiple state and federal regulations due to under-resourcing.
“Preserving these investments isn’t just about maintaining programs—it’s about ensuring people, businesses, and communities have the tools they need to thrive,” Corbin concluded.
— News Original —
LEO Director Susan Corbin Response to House Republican Budget
LANSING, Mich.—Today, the Michigan Department of Labor and Economic Opportunity (LEO) Director Susan Corbin released the following statement in response to the Michigan House Republicans’ $78.5 billion budget proposal. n n“The budget passed by House Republicans deals a devastating blow to Michigan’s employers, working families and vulnerable citizens — hurting Michiganders who deserve the right to earn a good living, have access to the skills they need to succeed in a career, and go to work knowing their rights and safety aren’t in jeopardy. n nThe House Republican budget would eliminate hundreds of LEO employees and cut approximately $1.13 billion, or 47%, from LEO’s overall budget. These drastic cuts to budget and staffing will create a ripple effect across Michigan’s economy and the programs people depend on. Reductions in resources mean fewer protections and safety nets, fewer jobs, and fewer opportunities for hardworking Michiganders. n nThe House Republican plan would also prevent LEO from accessing approximately $340 million in federal funding across the department in areas such as unemployment insurance and services for individuals with disabilities, including those who are blind or visually impaired. n nIn a time of national economic uncertainty brought on by federal tariffs, these cuts would not only cause immediate job losses, but they would also create long-term economic harm for families and businesses across the state. Instead of building a stronger workforce and preparing people for good-paying jobs, these reductions risk pulling Michigan backward — hurting workers, employers and communities alike.” n nEstimated impacts from the House-passed budget include: n nElimination of the Michigan Going PRO Talent Fund, which helps employers assist in training, developing and retaining current and newly hired employees. More than 91% of awards go to small businesses with less than 500 employees. In 2025, the Talent Fund provided 942 businesses with $56.9M in funding to support the training of over 30,000 Michigan workers. n nTermination of LEO’s expansion of Registered Apprenticeship initiatives to accelerate right-skill development for both employers and workers while ensuring maximum safety, quality and return on investment. Approximately 2,000 workers and 150 companies would be affected. n nLoss of $130 million in federal spending authority for the Unemployment Insurance Agency would delay and increase costs for the ongoing modernization efforts to replace outdated systems, reduce fraud, and improve claimant/employer services. n nDrastic reduction in funding for both Michigan Rehabilitation Services and the Bureau of Services for Blind Persons will leave 8,000 individuals with disabilities without the vital services they need to gain employment or independence. n nSevere cuts to MIOSHA would make Michigan workplaces less safe by reducing business trainings and inspections by approximately 40%. n nNoncompliance with numerous state and federal laws across the department. n n“Protecting these investments goes far beyond the programs, it’s about making sure our people, businesses and communities have the resources they need to succeed.”