Detroit, Michigan, December 13, 2025
The Michigan Senate has advanced critical economic development initiatives, including expanding the Transformational Brownfield Program and waiving unemployment benefits repayment during the pandemic. However, the House Appropriations Committee has implemented significant budget cuts totaling $644.9 million, raising concerns about the future of various economic projects. Advocates, including the Detroit Regional Chamber, are calling for restoration of funding to support Michigan’s economic growth.
Michigan Senate Advances Key Economic Initiatives Amid House Budget Cuts
Exciting developments for Detroit’s economy as key legislation moves forward while budget cuts raise concerns.
Detroit, Michigan – In a series of significant legislative actions, the Michigan Senate has advanced key economic development initiatives, while the House Appropriations Committee has enacted substantial budget cuts affecting various work projects.
Senate Advances Key Economic Development Legislation
The Michigan Senate has passed several bills that align with the Detroit Regional Chamber’s priorities:
- Transformational Brownfield Program Expansion: Senate Bill 723 increases the tax capture cap for Michigan’s brownfield redevelopment program from $1.6 billion to $3.5 billion. This expansion is expected to facilitate major redevelopment projects, including the Renaissance Center in Detroit and Lakeside Mall in Macomb County. The bill now moves to the House for further consideration.
- Unemployment Insurance Repayment Waiver: Senate Bill 700 waives the repayment of unemployment benefits paid in error during the COVID-19 pandemic. This measure ensures that claimants who received benefits through no fault of their own are not penalized for administrative errors. The final version of the bill preserves the Unemployment Insurance Trust Fund, preventing potential tax increases on Michigan employers.
- Expansion of Michigan Reconnect Program: The Senate has advanced legislation to extend the Michigan Reconnect program to include individuals aged 21 and older, down from the previous age requirement of 25. This program provides non-traditional students with opportunities to earn skill certificates or degrees at no cost, aiming to boost the state’s skilled workforce.
House Enacts Unprecedented Budget Cuts
In an unprecedented move, the Michigan House Appropriations Committee utilized a rarely used procedure to eliminate specific work projects from the 2024-25 budget, resulting in cuts totaling approximately $644.9 million. The affected projects include:
- Funding for Reconnect career navigators
- Lake Michigan Circuit
- The Office of Future Mobility Electrification
- The Office of Global Michigan
- The Michigan Innovation Fund
- The Make it in Michigan Competitiveness Fund
The Detroit Regional Chamber plans to advocate for the restoration of funding for these programs through supplemental budget appropriations and the full appropriations process, emphasizing their importance to Michigan’s economic development.
Background Context
The Transformational Brownfield Program aims to revitalize underutilized properties, turning them into economic assets. The expansion of the program’s tax capture cap is seen as a critical step in supporting large-scale redevelopment projects that can drive significant economic activity in the region.
The Unemployment Insurance Repayment Waiver addresses administrative errors that occurred during the pandemic, ensuring that individuals who received unemployment benefits through no fault of their own are not burdened with repayment obligations. Preserving the Unemployment Insurance Trust Fund is crucial to prevent potential tax increases on employers, which could impact job creation and economic stability.
The Michigan Reconnect Program has been instrumental in providing educational opportunities to non-traditional students, contributing to the development of a skilled workforce. Lowering the age requirement to 21 broadens access to these opportunities, supporting the state’s economic growth and competitiveness.
The House’s decision to cut funding for various work projects has raised concerns among stakeholders. The Detroit Regional Chamber emphasizes the importance of these programs in fostering economic development and plans to continue advocating for their support in future budget considerations.
Key Features
| Legislative Action | Description | Impact |
|---|---|---|
| Transformational Brownfield Program Expansion | Senate Bill 723 increases the tax capture cap for Michigan’s brownfield redevelopment program from $1.6 billion to $3.5 billion. | Facilitates large-scale redevelopment projects, including the Renaissance Center in Detroit and Lakeside Mall in Macomb County. |
| Unemployment Insurance Repayment Waiver | Senate Bill 700 waives the repayment of unemployment benefits paid in error during the COVID-19 pandemic. | Ensures individuals are not penalized for administrative errors and preserves the Unemployment Insurance Trust Fund to prevent tax increases on employers. |
| Expansion of Michigan Reconnect Program | Legislation extends the Michigan Reconnect program to include individuals aged 21 and older, down from 25. | Broadens access to educational opportunities for non-traditional students, supporting the development of a skilled workforce in Michigan. |
| House Budget Cuts | The Michigan House Appropriations Committee cuts approximately $644.9 million from specific work projects in the 2024-25 budget. | Raises concerns among stakeholders; the Detroit Regional Chamber plans to advocate for the restoration of funding through supplemental budget appropriations and the full appropriations process. |
FAQ
What is the Transformational Brownfield Program?
The Transformational Brownfield Program is an initiative aimed at redeveloping underutilized properties, turning them into economic assets. The recent expansion increases the program’s tax capture cap from $1.6 billion to $3.5 billion, facilitating large-scale redevelopment projects in Michigan.
What does Senate Bill 700 entail?
Senate Bill 700 waives the repayment of unemployment benefits that were paid in error during the COVID-19 pandemic. This ensures that individuals who received benefits through no fault of their own are not penalized for administrative errors, while preserving the Unemployment Insurance Trust Fund to prevent potential tax increases on employers.
What is the Michigan Reconnect Program?
The Michigan Reconnect Program provides non-traditional students with opportunities to earn skill certificates or degrees at no cost. The recent legislation aims to expand the program to include individuals aged 21 and older, broadening access to educational opportunities and supporting the development of a skilled workforce in Michigan.
What are the implications of the House’s budget cuts?
The Michigan House Appropriations Committee’s decision to cut approximately $644.9 million from specific work projects has raised concerns among stakeholders. The Detroit Regional Chamber emphasizes the importance of these programs in fostering economic development and plans to advocate for their restoration through supplemental budget appropriations and the full appropriations process.
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Author: STAFF HERE DETROITMI WRITER
DETROIT STAFF WRITER The DETROIT STAFF WRITER represents the experienced team at HEREDetroitMI.com, your go-to source for actionable local news and information in Detroit, Wayne County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Movement Electronic Music Festival, Detroit Grand Prix, and America's Thanksgiving Parade. Our coverage extends to key organizations like the Detroit Regional Chamber and Focus HOPE, plus leading businesses in automotive and healthcare that power the local economy such as General Motors, Ford Motor Company, and Henry Ford Health. As part of the broader HERE network, including HEREGrandRapids.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
