Senate, House Pass One-Week Continuation Budget; Federal Government Shut Down

Article courtesy MIRS News for SBAM’s Lansing Watchdog newsletter

After failing to reach final budget deals before the start of the new fiscal year, the Senate and House voted to temporarily fund the government until Oct. 8. The Governor signed the continuation budget at 3:50 a.m. Wednesday. It was filed with the Secretary of State at 4:07 a.m., meaning the state was without a budget for four hours.

First, the Senate passed a version of HB 4161 that essentially takes Fiscal Year (FY) 2025 spending and chops it by 1/52. The deed was done around 1:33 a.m. The Senate then adjourned until 10 a.m.

Sens. Jonathan Lindsey (R-Coldwater) and Jim Runestad (R-White Lake) voted against the amended continuation budget, and Sens. John Damoose (R-Harbor Springs) and Michele Hoitenga (R-Manton) did not vote on it. The bill received immediate effect.

“I certainly wish we weren’t here in this moment tonight, but I think the important thing to remember is that we were able to come to an agreement, even in a time like this with divided government, we will be keeping government services open,” said Senate Majority Leader Winnie Brinks (D-Grand Rapids) to the media.

The expectation is that a full Fiscal Year (FY) 2026 budget can be passed by Thursday and sent to the Governor to review and sign by next Tuesday. Sources contend an agreement on the FY ‘26 budget has been made. It’s now a matter of drafting the document and passing it in both chambers.

The House subsequently concurred in the Senate substitute 103-4 with Reps. Steve Carra (R-Three Rivers), James DeSana (R-Carleton), Jaime Greene (R-Richmond) and Tom Kunse (R-Clare) voting against, and Reps. Peter Herzberg (D-Westland), Regina Weiss (D-Oak Park) and Karen Whitsett (D-Detroit) absent.

“This whole budget process has been highly unusual,” Minority Leader Ranjeev Puri (D-Canton) said after the vote. Rep. Alabas Farhat (D-Dearborn) said the vote totals Wednesday showed that House Democrats were needed to get the bill concurred.

Majority Floor Leader Bryan Posthumus (R-Rockford) said the passed bill allows for time to do the legal review the Governor requested, but a signed agreement says no changes will be made. He said they expect to vote Thursday on a final bill, but then clarified that it’ll take two days before a vote is taken, meaning Yom Kippur might not be a session day after all.

The bill is being sent to the Governor for her signature, ending a brief state government shutdown in which nothing appears to have shut down.

Federal Government Flying Without A Budget

Over in Washington D.C., U.S. Senate Democrats declined to put any votes behind a continuing resolution to keep government funded out of protest for the health care cuts made in the One Big Beautiful Bill.

Both of Michigan’s U.S. Senators voted against the continuing resolution that has the federal government operating in shutdown.

U.S. Sen. Elissa Slotkin (D-Holly) said in order to get her vote, Republicans need to talk about health care. Letters from insurance companies are telling her Michiganders are looking at 10 to 20 percent increases on Jan. 1. That’s not going to work for her, she said.

“Republicans control the White House, Senate, and the House, so I understand that negotiations won’t yield everything I want. But serious adults can sit down, negotiate in good faith and pass a budget,” she said.  “The President has shown time and again that he thinks he can do whatever he wants, in violation of the Constitution. So whatever deal is eventually struck, I’ll need to see the details laid out in black and white.”

U.S. Sen. Gary Peters (D-Oakland County) said, “In my first term in the U.S. House of Representatives, I fought tooth-and-nail to pass the Affordable Care Act to ensure that families across Michigan could get access to quality, affordable health care coverage. In the years since it was signed, that law has literally saved lives by ensuring Michiganders can access the care they need, regardless of preexisting health conditions or economic status. We must take action to ensure families can continue to afford their health care.

“This is especially important after Republicans and President Trump passed their so-called ‘Big Beautiful Bill,’ which will rip health care coverage from hundreds of thousands of Michiganders and force rural health centers across our state to close their doors. This will leave more Americans uninsured, which will drive up health care costs for folks across the board, no matter where they get their coverage.

“No one wants a government shutdown, but health care premiums are estimated to double, and this Administration has already shown they don’t care if costs go up for hardworking families. Michiganders elected me to fight for them. I stand ready to work with my colleagues on both sides of the aisle to reach a bipartisan deal that prevents health care costs from rising even more and meets the needs of all of our communities.”

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