What’s The Fallout from the Michigan House’s ‘Work Project’ Denials?
Question 1): It’s always been routine. It should be easy.
As required by statute, the budget office of Gov. Gretchen WHITMER recently sent the Senate and House appropriations committee chairs a list of $2.7 billion in continued spending that had been left over from the 2024-25 state budget that was dedicated to projects and programs for years into the future. In the past, it’s been rubber-stamped, no matter which party was in charge of the process.
But NO! This time House majority Republicans did something unexpected — they axed about a quarter of the unspent dollars ($644.9 million), steering the money back into the General Fund, at least for now. Could they really do this? Apparently, yes, either chamber can deny carryover unspent dollars dedicated to specific categories through something called the “work project” process, based on a little-known 1984 law.
Democrats and many interest groups are outraged. Senate majority Democrats say this rarely used Scrooge-like maneuver is unnecessarily cutting services and projects at the knees, and they took action this past Tuesday to counter the House action. They also immediately began fund-raising off it, even before they adjourned for the year.
MIRS newsletter reported that nearly all the work project spending the House Republicans denied last week would be restored under legislation the Senate passed by a vote of 23-14, including five Republicans. Sens. Jon BUMSTEAD (R-North Muskegon), John DAMOOSE (R-Harbor Springs), Bill HUIZENGA (R-Zeeland), Ed MCBROOM (R-Waucedah Twp.) and Michael WEBBER (R-Rochester Hills) joined all of the Democrats present in voting “yes” on the bill.
Senate Appropriations Committee Chair Sarah ANTHONY (D-Lansing) (D–Lansing) called the House move “reckless, opaque and harmful” to communities statewide, and she sent a request for an opinion to sister Democrat Attorney General Dana Nessel on the constitutionality of the House action. House Appropriations Committee Chair Ann Bollin (R-Brighton Twp) fired back, contending that what the Senate did was itself unconstitutional.
House Speaker Matt Hall (R-Kalamazoo Co.) makes the claim that this $644.9 million was approved in 2023-24 by the Democratic majority “trifecta” and falls under the new House majority Republicans’ definition of “fraud, waste and abuse” they are using to reduce the size of the state budget and state government. Besides, he says, the axed spending could be restored in whole or in part in a supplemental spending bill that could be negotiated while GOP-style oversight and demand for transparency is exercised.
Will the House Republicans’ maneuver hold up, and if so what will be the upshot? Does this slam the door on the possibility of bicameral cooperation on spending going forward? Can legislative Democrats run a successful “Republicans are Scrooges” campaign in the 2026 election? If so, can Republicans counter it?
Answer 1): The philosophy of House Speaker Matt Hall and his majority Republicans is “use it or lose it” — either spend the money the Legislature appropriated for these many projects by the end of the fiscal year (Sept. 30, 2025) or it can be clawed back by lawmakers. Hall has taken on the identity of “Trump 2.0” in Michigan, constantly ‘pushing the envelope’ as he seeks to expand House power vis a vis Senate majority Democrats and the executive branch. Hall’s fingerprints are all over this latest House Republican maneuver, just as they were over the tipped wage credit/paid sick leave kerfuffle at the beginning of this year and the budget cliffhanger/Fix the Damn Roads imbroglio on Sept. 30. Hall’s mantra is that Michigan voters in 2024 put House Republicans in the majority to end “waste, fraud, and abuse.” He believes saying ‘No’ to a $645 million “slush fund” is not a political liability — it’s House Republicans doing their job and drawing a clear contrast with the old way of governing.
What is the upshot? Unless Gov. Gretchen Whitmer can pull a rabbit out of the hat with an Executive Order that will scuttle the House ploy and pass muster in court, the House GOP may win out in demanding a reset of the way business has traditionally been done in the capitol.
Legislative Republicans are saying that, if Senate Democrats are serious about structural, bipartisan economic development reform — clear standards, transparency, and accountability — the House GOP would welcome that opportunity through the HEAT (Hall Ethics, Accountability and Transparency) model.
Going forward, projects will have to be justified, negotiated openly, and aligned with statewide priorities, says Hall as he tries to change the culture in Lansing. That’s a healthier process for Michigan, he argues, even if it upsets Senate Democrats and many interest groups.
Ultimately, the fallout looks to be two-fold: Both sides now have more ammunition — expect to see lots of Democrats talking about the soulless, DOGE-oriented GOP, and Republicans running ads about how their opponents want to make government bigger, doling out pork that Republicans think should not be funded by the taxpayers.
Could this latest Lansing contretemps be a boon to Mike Duggan, the independent candidate for Governor who contends that Lansing is broken and he’s the best equipped to fix it? Very possibly, because his message will likely be attractive to a frustrated populace that wants to throw everyone out and start over.
As for next year’s budget? With an election looming, that’s when legislators of both parties traditionally retreat from partisan rancor and take care of business quickly (by the Fourth of July, anyway) so that they can repair to the campaign trail.
But that was before Matt Hall came to town.
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The problem with ‘use it or lose it’ is how it encourages reckless spending in the last quarter of every fiscal year.
For a change, we are in agreement. Requiring money appropriated to be spent by the end of the year is a recipe for “waste, fraud and abuse”.
Wrong. The problem is solved now. Just because the Democrats front loaded or hocked our future while they were in control does NOT mean they had the ability to spend it in the fiscal year. It DOES mean they they could not spend it as fast as they they took it.
You greatly underestimate the ability of forewarned bureaucrats to place huge sums of money beyond the Legislature’s control at the drop of a hat. These people are not dumb. They have no intention of ceding control of the government to elected politicians.
Michigan bureaucrats and their obeisant nonprofits won’t be caught with their pants down again. They will carefully study Droolin’ Joe’s EPA’s creation of a $ 20 billion climate fund at Citibank in January of this year which the Trump administration was unable to claw back. Bureaucrats and the NGO class will be forearmed every September.
Hall’s maneuver was a one shot deal. These maneuvers are highly educational.
In politics it is almost always far easier to say ‘no’. It’s true for Matt Hall AND Chuck Schumer. A truer test of effectiveness is creating a majority for ‘yes’. By that measure, Hall’s “dominance” isn’t necessarily good. The reality that this Legislature set a record for fewest public acts since the 19th century shouldn’t be a point of pride for Dr. No.
The “majority for yes” crowd produced a 15.5% increase in real (inflation adjusted) state government spending from 2015 to 2024. Michigan’s population only increased 2% during that same period.
The “easier to say no” crowd is less enthusiastic about spending other people’s money than the “majority for yes” crowd. They appear to be paying attention to growing states like Florida and Texas, rather than the “majority for yes” crowds’ imitation of losers like California and New York.
First of all, don’t insult Ebenezer Scrooge – he is a paragon of fiscal responsibility and could be elected today as a Republican if he were not a fictional Charles Dickens character.
This article details arcane political maneuvering – and yes, I absolutely agree that an unintended third-party beneficiary of this wrangling will be the campaign of Michael Duggan – who needs a boost in the gubernatorial polls.
Matt Hall lives in Kalamazoo County and will likely be re-elected no matter what occurs – however there are many swing districts that can be affected by partisan bickering – such as the 58th House District where the GOP took over after decades of Democratic Party control when Nate Shannon was given the boot by voters in Warren and Sterling Heights by GOP nominee Ron Robinson. This is a seat that the GOP needs to hold onto. Ditto for Rep. Rylee Linting downriver.
There will be a national Blue Wave in 2026 – just like in 2018 – and the goal of the MIGOP should be to NOT alienate the Michigan electorate and retain the seats it flipped in 2024.
The Republicans thinking outside the box?!? Shazam! I’m lovin’ it!
Bill, I hope you don’t mind if I close out the year disagreeing just a little bit with your “use it or lose it” descriptor. I just don’t see that as what’s going on. Whether they call it HEAT, or whatever, what I see is, claw back. Clawing back,
1) Yeah, ~$650M. Draining a little bit of the trifecta slush fund as you say. Chump change. It’ll be back in the budget before we know it as Ms. Bollin has already indicated.
2) Respect. Of themselves. After having one party rule under the trifecta years.
3) Respect. Proving to themselves that lo-and-behold, maybe they really are ready to govern.
4) Re-balance. After having years of in-your-face, smash-mouth, take-it-or-leave-it imperial rule. Now the Dems might actually have to experience a give-and-take, open-forum, governing process. What will the ignorant voter class do with open debate knowledge? Ignore it? Not understand what it is? Perhaps.
The republicans just win in too many ways; not use it or lose it. Business in a new way. Merry Christmas, Bill.
Matt Hall is driving the bus in Lansing. He is a STRATEGIST
With the probability that the House will retain their majority of Republicans, Matt will be Speaker for the next three years.
This will get very interesting if there is a Republican Governor in 12 months, and the Democrats retain a majority in the Senate
The public is probably not buying it that the money can be restored in a supplemental, which is well known to those of us with experience in the state legislature.
MERRY CHRISTMAS to everyone !
My prediction is that John James will be the next Michigan governor – no declared GOP candidate can defeat him – and the Dems are hopelessly divided by having Jocelyn Benson as the presumptive nominee with John James and Mike Duggan scavenging votes from the Democratic Party stronghold of Wayne County.
The GOP will likely recapture majority control of Michigan Senate that it held from 1983-2022.
The key battleground will be the Michigan House. The GOP will have to ensure the respective campaigns first-termers such as Ron Robinson and Rylee Linting are well-funded.
If the “projects” were so critical, then why was the money not spent?
Carry over money just becomes some bureaucrat’s slush fund.
And if, in fact, some critical brilliant need is unfunded surely it would get the monies—-to be actually spent.
All the lobbyists and bureaucrats are upset as the can not STAND the thought of taxpayers not paying more and more taxes each year.
Leanne et al, NO way will James get elected.
I think it will be Duggan. Neither James nor Benson is going to inspire anyone, When a pudgy white politician from Livonia can win a Detroit mayoral primary as a write-in, everything else should be a breeze.
I hope Duggan wins – however he has been only polling about 20% – and third behind the prospective GOP and Democratic Party nominees. That can change – recall Rick Snyder was at 2% at the beginning of 2010.
Some think John Stewart would make a good moderate candidate.
Interesting maneuver on the Speaker’s part and he should buy a beer for whichever staffer came across this idea. As Bill knows all too well, it’s much easier to assert power in the House as Speaker than in the Senate where if one member of a split body decides to go south on their Senate leader it often upsets the balance of power. I think that this would be a non-starter if the members wrote boilerplate into their grant that it can be spent over a period of time and got that passed when the grant came up. Always worked in the past and is common practice in capital outlay projects. You’d have to get the members (especially the Speaker to agree to a specific grant, but leadership always wants something so the old and very relevant saying: “What goes around comes around” may be relevant.)
Leanne,
You are so very kind. I have always apprciated your comments on TBR. Please -stop by -I would love to host you at 1142 S. Main, Plymouth
There is a general political cycle rule that governs Michigan governor elections:
The party of the retiring incumbent governor will LOSE where that governor is the party of the sitting U.S. President. In 1982, Republican gubernatorial nominee Dick Headlee lost when retiring GOP governor Bill Milliken was leaving office and Reagan was in the White House. This cyclical trend has followed ever since:
(A) In 2002, Republican Dick Posthumus was defeated by Democrat Jennifer Granholm where the retiring incumbent was the GOP governor John Engler and George W. Bush was president;
(B) in 2010, Democrat Virgil Bernero was walloped by Rick Snyder where the retiring incumbent governor was Ms. Granholm and the President was Obama – the GOP swept all statewide Michigan offices that cycle;
(C) in 2018, Democrat Gretchen Whitmer easily defeated Bill Schuette where Donald Trump was the sitting president.
This upcoming 2026 election cycle, the countervailing cyclical force going against Republicans is the Trump mid-term phenomenon – however the retiring two-term Gretchen Whitmer does give the GOP some wind at their backs. The wild card is Michael Duggan, who is anticipated to siphon more votes from Jocelyn Benson as Democratic Party nominee. But even this is debatable.
Michigan State Rep. Matt Maddock, vice chair of the Appropriations Committee, is extensively quoted on the $ 645 million impoundment process performed by his committee in this The Midwesterner post:
‘Rep. Matt Maddock thanks Lansing insiders who helped expose waste, fraud, abuse in work project spending’
“There’s 100,000 targets in this town”
By Travers Koory | December 23, 2025
Milford’s Matt Maddock has been a maverick inside the GOP – at one point he was excluded from the House GOP Caucus.
Matt’s wife, Meshawn, ran for GOP chair last election as an “outsider” with a Trump endorsement – and finished a distant second behind Jim Runestad. She was one of the organizers of Michigan’s delegation to the January 6th, 2021 protests at the U.S. Capitol.
Matt has been a right-wing fringe player in state politics.
I expect the Democratic party “trifecta” to be gone from the Executive Branch by 11-1-1027.
The Michigan Democratic Party has undergone tremendous internal upheavals that will have to be mended before they have ANY chance at making 2026 a successful election cycle.
The “Officers-at Large” of the state party organization have been recently filled under the Curtis Hertel chairmanship to include many previously underrepresented minorities. The UAW and AFL-CIO activists used to form the backbone of the grassroots Democratic leadership in Michigan – but no more – the MDP has re-aligned.
Brian Pannebecker, for instance, is a retired UAW activist who has led the growing number of UAW workers and retirees who have supported Donald Trump and GOP policies. His speeches have drawn crowds around the nation. Unless the MDP leadership can stanch this dissension and still attract “woke” Democrats, the party in this state will have problems in the 2026 election cycle.
I saw Mr. Pannebecker speak at an event in the City of Warren. It was at an event sponsored by the MIGOP coalitions vice-chair.
He represents the silent majority of UAW and other labor union members who feel abandoned by the Democratic Party.
You will always have union members that will support the Democrats – however the ability of GOP leaders to recruit union voters to their candidates is and has been a major goal of the Michigan GOP leadership. Ronald Reagan was great at that.
The $ 645 million spending party is back on.
Michigan Attorney General Dana Nessel just issued a formal opinion that MCL 18.1451a(3) is unconstitutional. “The Attorney General concluded in her opinion that this disapproval mechanism violates both the Separation of Powers and Bicameralism and Presentment requirements in the Michigan Constitution.”
Michigan Court of Claims Judge Michael Gadola late this afternoon enjoined all state departments to immediately stop spending the disputed $ 645 million. This reversed his position of earlier today which was to make no ruling until next week.
The judge said the Republican House is “likely to succeed” on the merits of its lawsuit against AG Nessel and would face “irreparable harm” if state agencies were allowed to continue spending the impounded money.