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Trump and Republicans' Budget Robs $1.1B from Michigan Budget

Government and Politics

July 31, 2025


Amid state House Republicans’ ongoing refusal to negotiate, Trump’s tax cuts are creating yet another barrier as Michigan Dems try to pass a budget 

LANSING - While state House Republicans drag their feet and fail to pass a state budget, Congressional Republicans’ billionaire budget will devastate Michigan’s operating budget to the tune of $1.1 billion in the next year alone. Not only does this budget gut health care, take away food assistance, and give the ultra wealthy another tax break, but it will also create a colossal hole in the state’s general fund. 

“This DC budget is killing Michigan, and yet, Republicans are perfectly willing to hang us and our neighbors out to dry over this devastating legislation that takes more than a billion dollars from Michigan and hands it to their billionaire buddies,” said Chair of the Michigan Democratic Party Curtis Hertel. “At the same time, while Democrats in the state Senate have had a proposed budget for months now, MAGA Matt Hall has been dragging his feet and throwing political temper tantrums in an outright refusal to come to the table in good faith.”

At every level, in every way, Republicans are failing Michiganders — even Republican gubernatorial candidates like John James and Aric Nesbitt are praising the budget that shoots our state in the foot. Right now, Michigan Democrats are the only ones standing up to fight for working families, and now, Dems have $1.1 billion less to deliver the critical services that Michiganders rely on — all because Republicans wanted to line the pockets of the wealthy. 

Read more about how Republicans are hurting Michigan below:

Detroit News: Trump tax cut law blows $1.1B ‘hole’ in Michigan budget, new report warns

  • A new $1 billion financial hit, spurred by a tax law signed by President Donald Trump, is poised to complicate Michigan lawmakers’ mission of crafting a state budget and avoiding a government shutdown, suggests a new report from a nonpartisan research group…
  • The report echoed findings from the nonpartisan Michigan House Fiscal Agency, which stated last week that changes to federal tax policy would result in a $677 million reduction in state business tax revenue next year…
  • “Regardless of the eventual outcome, all parties need to recognize that the OBBBA will bring a new $1 billion challenge to these discussions,” the Citizens Research Council report said…
  • The Democratic-controlled Senate passed its own full $84.6 billion state budget proposal in mid-May.
  • However, the Republican-led House has approved only a budget plan for schools, universities and community colleges, leaving questions lingering about its ideas for funding state agencies and road projects…
  • In the near term, the policy creates “a $1.1 billion hole” in the budget plan the governor recommended in February, the Citizens Research Council’s report found.