Honigman Capitol Report

Whitmer Speaks at Selfridge

President Trump announced that Selfridge Air National Guard base will receive 21 new F-15 Eagles, replacing the retiring A-10 Warthogs. This decision is a major win for the base and Governor Gretchen Whitmer, who advocated for the change despite political risks. During the announcement, Trump praised Whitmer for her efforts and invited her to speak, where she expressed her satisfaction without mentioning Trump. The decision is crucial for the Harrison Township facility, which faced an uncertain future after 2027. The new F-15EXs will arrive in 2028, securing jobs and $30 million in wages. Trump also acknowledged House Speaker Matt Hall, U.S. Rep. John James, and Senate Majority Leader Aric Nesbitt for their contributions. Whitmer highlighted the bipartisan effort and the economic and security benefits for Michigan. Local officials, including Macomb County Executive Mark Hackel, Public Works Commissioner Candice Miller, and Sen. Kevin Hertel (D-St. Clair Shores) praised the decision.

Committee News

Senate Proposal Moves out of Subcommittee

The Senate has proposed a $100 million "LEO Lifeline" budget for FY 2026 to support entities impacted by President Trump's tariffs. Authored by the chair of the Senate LEO/MEDC Appropriations subcommittee Sen. Mary Cavanagh, the budget is designed to help businesses and communities navigate economic challenges. It includes $20 million for grants and loans to businesses most negatively affected by tariffs, ensuring that those experiencing the greatest financial strain receive priority assistance. Additionally, $20 million is allocated for economic relief and emergency preparedness grants to nonprofits that provide essential community support. The budget also dedicates $30 million to worker training and retooling initiatives, focusing on industries hardest hit by tariffs. Furthermore, $10 million is set aside for grants to food banks, $10 million is allocated for grants to apprenticeships and adult education programs, and $9 million is designated for grants or incentives. Beyond these allocations, the Senate's budget includes $125 million for housing programs, addressing the state's ongoing housing challenges. It also provides $55.75 million for small business support and $34.23 million for workforce-center programs. While acknowledging that the budget won't fully resolve the housing crisis or compensate for federal funding cuts, Cavanagh emphasized that it represents a crucial step in ensuring Michigan remains a viable place to live and work. The budget was reported on a party-line vote.

House Oversight Subcommittee Scrutinizes SOAR Program

This week the Subcommittee on Corporate Subsidies and State Investments held an animated on the Strategic Outreach and Readiness (SOAR) program with official from the Michigan Economic Development Corporation (MEDC). Members of the subcommittee were seeking specifics on dollars spent, industries targeted, proposed job creation numbers, and timelines for completion. During the hearing members referenced the recent Bridge Magazine article which deeply scrutinized the program. The bipartisan grilling of MEDC officials Christian Armstrong and Josh Hunt could mean that another round of legislation supporting this program could be in danger. According to testimony from the duo at MEDC, no projects have had dollars clawed back since the inception of the program meaning recipients were abiding by the parameters of the program. It is expected that additional hearings will be added to the docket. This could result in major employers in Michigan facing an imminent future of these funding sources becoming jeopardized.

Election News

John James Leading Early Polling for GOP Primary

The Michigan Conservative Coalition poll, conducted by National Research Service Inc., surveyed 500 likely Republican voters. It shows U.S. Rep. John James leading the GOP primary for the 2026 gubernatorial race with 35% support. However, his support is described as "soft," indicating vulnerability. Tudor Dixon, the 2022 gubernatorial nominee, follows closely with 29%, and Senate Minority Leader Aric Nesbitt has 11%. Other candidates include former Attorney General Mike Cox at 4%, business executive Kevin Rinke at 3%, with 2% supporting "someone else" and 15% undecided. Among "high information voters," who stream their news, James and Nesbitt are nearly tied, with James at 24% and Nesbitt at 23%, while Dixon is at 15%. The poll also examined James' unfavorable ratings, noting criticisms such as being labeled the most liberal Republican by Americans for Prosperity, voting to increase the federal budget, and allegedly questioning President Trump's trustworthiness. When these unfavorables are highlighted, Nesbitt's support rises to 37%, Dixon to 23%, Cox to 8%, and James drops to 4%. Rosanne Ponkowski, spokesperson for the Michigan Conservative Coalition, emphasized that the race is still early, with potential new candidates expected to join. The poll's respondents were 80% Republican and 20% identified as Independent, Democrat, or other.

On Point

Client Alert: Spotting Opportunities: 2025 Tax Appeals for U.S. Property Owners

Looking Ahead

The state Senate and House are expected to exchange fiscal year 2026 budget bills in the next two weeks officially starting budget negotiations. Yesterday, Veronica Kleinfelt placed more than $3 billion on her Transportation Subcommittee balance sheet for a roads funding plan. It is expected that this subject will be a key sticking point for both chambers during the budget negotiations. The House passed a bipartisan package weeks ago that landed like a lead balloon in the Senate. Two very different visions for how roads are funded over a long period are going to continue to hamper budget talks. A funding plan combining both aspects of the House and Senate for a budget deal, is the likeliest outcome the point of contention will be around whether to include additional revenue enhancements.