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Michigan Governor Whitmer Urges Bipartisan Budget Deal Amid Tariff-Driven Economic Uncertainty

Sep 18, 2025, 4:16 p.m. ET

On Tuesday, Sept. 16, 2025, Michigan Governor Gretchen Whitmer called on the state Legislature in Lansing to reach a bipartisan budget agreement before the end of September, warning that stalled negotiations and federal tariffs are fueling economic uncertainty and risking a partial government shutdown.

Michigan Governor Gretchen Whitmer delivered a speech on Tuesday, Sept. 16, 2025, in Lansing urging lawmakers from both parties to resolve the ongoing budget stalemate before the end of the month. She emphasized that the deadlock in the divided Legislature, combined with unpredictable federal tariffs, is creating significant uncertainty for Michigan's economy and job market.

Whitmer highlighted that the state faces a looming partial government shutdown if a budget deal is not finalized by the Oct. 1 deadline. Thousands of state employees represented by the United Auto Workers Local 6000 are anxiously awaiting layoff notices as contingency plans are being prepared.

"Uncertainty makes it difficult, if not impossible, for businesses to plan ahead. Uncertainty pushes family finances to the brink," Whitmer said in her prepared remarks. She described the current situation as a "man-made storm of uncertainty" exacerbated by "chaotic national tariff policies" and the stalled budget negotiations in Lansing.

The governor pointed to tariffs imposed by the Trump administration on imports such as aluminum and steel as particularly harmful to Michigan's key industries, including automotive manufacturing and agriculture. A recent report from the Michigan Department of Agriculture and Rural Development found that tariffs have increased food prices and reduced agricultural exports, threatening jobs and rural economies.

Whitmer expressed openness to compromise but stated she would not sign the Republican-controlled House's budget proposal, which includes over $5 billion in cuts to state departments and services. The House and the Democratic-led Senate have passed differing budget plans, and negotiations have yet to produce a unified spending agreement.

Republican House Speaker Matt Hall has linked school aid funding to a road funding plan, complicating the budget talks. Senate Majority Leader Winnie Brinks reaffirmed the Senate's commitment to protecting key services such as school meals, healthcare, and infrastructure, stating, "I’m proud to have a partner in this fight with Gov. Whitmer, and we’re going to get the job done."

Whitmer urged the Legislature to act swiftly to avoid disruptions to vital state services and to reduce economic uncertainty for Michigan families and businesses. She also pledged to advocate for more strategic tariff policies with federal officials in Washington, D.C.

The governor's address came a day before Vice President JD Vance visited Michigan to promote the Trump administration's economic agenda, focusing on tax cuts and manufacturing job restoration but not addressing tariffs directly.

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