MLC Insider Intelligence: December 12, 2025
Michigan Legislative Consultants
Weekly Recap: The House held session and committees Tuesday-Thursday, while the Senate held session on Tuesday and committees throughout the week.
House Stops Millions in Funding: In an extremely rare move, the House Appropriations Committee voted to cancel almost $645 million in ongoing funding to various work projects throughout state government. The projects were all approved during the FY25 budget process and received appropriations. Work projects are multi-year projects vs. a standard one-year project appropriation. As part of the process, the State Budget Office provided a list of ongoing work projects to both Appropriations Committees. If neither committee took any action, the previously approved projects would have continued. However, unlike every other action taken by the legislature, it only takes one of the committees to cancel some or all of the ongoing work projects. While the process the committee took is allowed under a 1984 law, it has never been used on a large scale. At a press conference, Representative Will Snyder (D-Muskegon) stated he intends to introduce legislation to change the law to ensure both chambers must approve cancelling work projects.
Canceled Projects: The list of cancelled work projects is wide-ranging and spans across multiple departments. Some of the larger items include nearly $160 million for the Make it in Michigan Competitiveness Fund, over $102 million in community enhancement grants, and $50 million for the Indigent Defense Commission. Additional impacted projects include $18 million for prenatal and infant support programs, $3.5 million for Native American Health Services, and roughly $368,000 for the Michigan Veterans Facility Ombudsman.
Moving Forward: While the House Republican Caucus has stated this is part of their plan to cut “waste, fraud, and abuse” from state government, the House Democratic Caucus held a press conference in strong opposition to this move. The hearing deepened the rift in what was already a precarious relationship between the caucuses.
As of Friday morning, there remain a lot of questions and uncertainty. Neither the House, the Senate, nor the administration has a full list of every program that will see its funding removed. Additionally, they don’t know the exact amount, as some programs have already spent a portion of appropriated funds.
House Appeals Bill Presentation Ruling: Michigan House Republicans are appealing a Court of Appeals (COA) decision requiring them to present all legislation that passes both chambers to the governor. In the appeal to the Michigan Supreme Court, they’re stating a lack of standing by the Senate and a separation of powers concern with the COA ruling.
Background: Nine bills passed both the House and Senate at the end of 2024 but weren’t presented to the governor before the end of the previous Speaker of the House’s term. Typically, all legislation passed by both chambers would have been presented before a change in leadership. When Speaker Matt Hall (R-Kalamazoo) assumed his leadership role in January 2025, he declined to present them to Governor Whitmer until a legal review was completed. On behalf of the Michigan Senate, Senate Majority Leader Winnie Brinks (D-Grand Rapids) filed a legal challenge in the Michigan Court of Claims. Earlier this year, the court ruled that the House must present the bills to the governor, but declined to enact a timeframe for which they must comply. After another legal challenge, the COA agreed with the Court of Claims, finding the Michigan Constitution requires that after a bill passes both chambers, it must be presented to the governor for final consideration.
Next Steps: If the Michigan Supreme Court declines to hear the appeal, the COA’s decision will remain in effect. The Court currently has a 6-1 Democratic majority.
State Superintendent Begins Role: Dr. Glenn Maleyko started his role as State Superintendent and head of the Department of Education this week. The State Board of Education selected him for the role in August, following the retirement of former Superintendent, Dr. Michael Rice. Dr. Maleyko has 30 years of experience in Dearborn Public Schools as a central office administrator, building principal, teacher, and superintendent.
Priorities: At this week’s State Board of Education meeting, Dr. Maleyko outlined his priorities, including renewing the Top 10 Strategic Education Plan to update and strengthen it through robust statewide stakeholder engagement and improving student literacy by building upon new measures that are already being implemented under laws for which the Department of Education and the State Board of Education advocated. Additionally, he’s focused on strengthening student pathways to academic and career goals and postsecondary readiness. This includes expanding dual enrollment, early college, Career and Technical Education, Advanced Placement, and International Baccalaureate programs, many of which are already at record-high levels, and increasing graduation rates, which are also at a historic high. To address shortages, he wants to strengthen the workforce by investing in teachers and support staff, improving mentoring, and growing the educator pipeline.
Next Steps: “In the coming months I will launch a Statewide Listening Tour,” Dr. Maleyko said. “I will visit schools across Michigan, meet with educators, students, families, support staff, school board members and community partners, and attend events across every region. This Listening Tour, with support from the State Board of Education and Michigan Department of Education staff, will directly inform a major statewide initiative: the renewal and enhancement of the Top 10 Strategic Education Plan through broad stakeholder engagement. High-achieving states build strategies through deep listening—and we will do the same. As Wayne Gretzky said: ‘I skate to where the puck is going to be, not where it has been.’ Our Listening Tour will help Michigan skate toward the future of education.”
Senate Votes to Forgive Unemployment Overpayments: In a show of bipartisanship, the Senate voted unanimously to forgive $2.7 billion in overpayments sent to Michigan residents during the COVID-19 pandemic.
Background: Given the sharp increase in claims during the pandemic, Michigan’s Unemployment Insurance Agency (UIA) was moving quickly to get funds to claimants, leading to errors. Around 350,000 residents are being asked to repay claims that were paid in error. Recovery of the funds was put on hold for three years while a legal challenge worked its way through the courts. However, this past fall, collections were allowed to restart.
Key Points: The legislation prohibits the recovery of improperly paid funds after three years from the date of payment, for claims on or after February 1, 2020. It requires the UIA to treat benefits paid between February 7, 2020, and September 5, 2021, as an administrative or clerical error, and for the agency to waive recovery of those benefits. To allow the agency to continue to pursue fraud, the legislation provides an exemption for benefits paid due to fraudulent activity.
Governor Whitmer Elected to National Role: Governor Gretchen Whitmer was elected to serve as Vice Chair of the Democratic Governors Association (DGA). She’ll serve alongside DGA Chair, Governor Andy Beshear of Kentucky, to help Democratic candidates win gubernatorial races in 2026. Next year, voters in 36 states will cast ballots to elect their governor. At the start of the year, Democrats will control 24 of America’s 50 governorships.
2026 Elections: According to the DGA, they’ve identified issues that will be part of its “winning playbook,” including an intentional focus on making life more affordable, a message they hope will work even in some conservative-leaning states. To further help their chances in red states, they will emphasize the costs of housing, child care, utilities, and groceries under the Trump administration. The DGA will focus on competing in states such as Iowa and Ohio, where the party used to be competitive but has struggled in the Trump era, with a priority of flipping Iowa, Georgia, and Nevada.
Democratic Governors Association: The DGA is an independent voluntary political organization, supporting Democratic governors and candidates across the nation. The organization participates at all levels of campaigns, from providing resources to fund operations to helping articulate and deliver their messages. The DGA also helps governors lead their states, serving as a clearinghouse of best practices to help governors and their staff share their policy successes and learn from each other.
Senate Moves PPO Reforms: The Michigan Senate unanimously approved two bills that seek to ensure personal protection orders (PPOs) are immediately served by law enforcement officials at no cost.
District: Currently, someone seeking a PPO must pay fees that include mileage and other costs for the order to be served, or they may designate someone they know to serve the PPO for them. Under the legislation, law enforcement would be required to immediately serve a PPO at no cost. The proposal creates a Personal Protection Order Service Fund, administered by the Michigan State Police, to cover local law enforcement costs for providing the service. The fund received a $1 million appropriation in the FY26 budget. The law enforcement agency serving the document may collect $50, or $26 plus mileage, from the fund.
Importance: “Forcing someone to choose between not having a PPO served, paying a fee they may not have, or sending a family member or friend to confront someone who has already demonstrated threatening or violent behavior is shameful and illogical,” Senator Johnson said. “These commonsense measures would have Michigan join 43 other states in eliminating these costs and require law enforcement officers to swiftly serve protective orders.”
Lottery Commissioner Resigns, Acting Commissioner Named: Suzanna Shkreli announced her resignation as Michigan Lottery Commissioner in order to run in the open Michigan Secretary of State election in 2026. Following the announcement, Governor Gretchen Whitmer named Joe Froehlich as acting commissioner.
Mr. Froehlich: He previously served as chief operating officer of the Michigan Lottery, deputy commissioner of Legal Affairs and Charitable Gaming, and director of Compliance and Legal Affairs. Before joining the Lottery, he served for more than a decade in a variety of staff and management positions at the Michigan Department of Attorney General. Additionally, he worked in the legal division of a Fortune 500 property and casualty insurance company, an attorney at a Lansing-area law firm, and as a law clerk and court officer for the Ingham County Circuit Court. Mr. Froehlich is a graduate of Eastern Michigan University and Michigan State University College of Law.
Michigan Lottery: Founded in 1972, the Michigan Lottery is an independent agency within the State of Michigan. The agency is self-funded and operates as a business enterprise. For every $1 spent on Lottery during FY25, 63 cents went to prizes, 25 cents went to the School Aid Fund, 9 cents went to retailer and vendor commissions, and 3 cents funded Lottery operations. In FY25, more than $1 billion was contributed to the School Aid Fund, which provides funding for Michigan’s K-12 public schools.
Spotlight On Representative John Fitzgerald: Representative Fitzgerald (D-Wyoming) is serving his second term in the Michigan House of Representatives and is currently serving as the House Democratic Floor Leader. He began serving in public office in 2020 when he was elected to the Wyoming City Council. He is a graduate of Michigan State University.
District: He represents the 83rd House District, which includes the city of Wyoming and other Kent County communities.
Committees: Representative Fitzgerald serves as minority vice chair of the Government Operations Committee and is a member of the Insurance Committee.
Next Week: The House and Senate are scheduled to hold their typical Tuesday-Thursday session schedule.