Honigman Capitol Report

Governor's Office

Governor Whitmer’s Executive Order Extended

Michigan motorists should continue to have access to lower-cost gasoline for the remainder of the summer after the Michigan Legislature extended Gov. Gretchen Whitmer’s state of energy emergency, allowing Executive Order 2026-4 to remain in effect beyond its July 1 expiration date. The order temporarily relaxes certain summer fuel requirements, which are typically imposed in warmer months to reduce air pollution but can increase production costs and limit fuel supply. By permitting covered gas stations to sell lower-cost fuel that is already available in other parts of the state, the waiver is expected to save drivers approximately 10 to 20 cents per gallon. The extension is intended to provide near-term relief to Michigan families, commuters, small businesses, delivery services and other drivers during the busy summer travel season, when gasoline expenses often make up a larger share of household and operating budgets.

Committee News

$75 Billion Budget Approved

Michigan lawmakers approved a $75 billion FY 2027 budget last week after a long and complex negotiation process, reducing overall spending from the current $81 billion plan by rolling back federal spending authorizations, eliminating one-time appropriations, cutting earmarks and ending certain pilot programs. Legislative leaders characterized the reductions differently, with House Republicans emphasizing cuts to “waste, fraud and abuse” and Senate Democrats describing the changes as efficiencies made necessary by the end of COVID-era funding and a roughly $1 billion budget gap, while maintaining Medicaid and food assistance benefits. The final agreement reflected tight fiscal constraints, limited special-project funding, and extensive staff-driven negotiations among House, Senate and administration leaders, culminating in overnight conference committee action and bipartisan passage in both chambers.

Economic Development Incentive Programs Extended and Expanded

The Michigan legislature passed a series of bills extending and expanding key economic development incentive programs designed to support real estate redevelopment and rehabilitation projects across the state. Senate Bills 721 and 722, both introduced by State Senator Jeremy Moss (D-7th) extend and revise two expired property tax abatement programs for commercial properties: the Commercial Rehabilitation Act, Public Act 210 of 2005, as amended (“PA 210”), and the Commercial Redevelopment Act, Public Act 255 of 1978, as amended (“PA 255”). The bills extend authorization to approve and issue tax abatement certificates under these programs through 2035 and update several program features, including increasing the maximum term of a PA 210 certificate from 10 years to 12 years. Senate Bill 723 introduced by Senator Sarah Anthony (D-21st) also modifies the transformational brownfield program under Michigan’s Brownfield Redevelopment Financing Act, including by increasing the statutory limit on certain tax revenue capture. Together, the bills preserve essential economic development tools and enable local communities to support adaptive reuse and new commercial development through greater tax stability.

Election News

McMorrow Drops Out

Mallory McMorrow’s decision to suspend her U.S. Senate campaign reshapes Michigan’s Democratic primary, leaving U.S. Rep. Haley Stevens and Abdul El-Sayed to compete for her supporters and reinforcing a broader contrast between Stevens’ institutional, pragmatic positioning and El-Sayed’s progressive, anti-establishment appeal. McMorrow’s supporters are expected to split roughly evenly between the two remaining candidates, though some absentee ballots already cast for McMorrow may remain in the final count. Recent endorsements are sharpening the divide, with EMILYs List and Attorney General Dana Nessel backing Stevens, while Sen. Stephanie Chang has endorsed El-Sayed. On the Republican side, Donald Trump’s endorsement of John James significantly strengthens James’ position, although Perry Johnson’s self-funding and Mike Cox’s experience could keep the primary competitive. Overall, McMorrow’s exit accelerates consolidation in the Democratic field and raises the stakes for both Stevens and El-Sayed.

On Point

Client Alert: Credit Privacy Number Fraud Developments