Administration Puts $349M Dollar Figure to ‘Unencumbered’ Work Project Money
February 10, 2026
Article courtesy of MIRS for SBAM’s Lansing Watchdog newsletter
In arguing for a speedy resolution to the case over the House Republicans rejecting $645 million in “work projects” at the end of last year, the Gov. Gretchen Whitmer administration acknowledged for the first time Wednesday that $349 million of that money (roughly 54%) is “unencumbered” and could, theoretically, be used to fill about 35% of the nearly $1 billion drop in state revenues.
The Department of Technology, Management and Budget (DTMB) asked a court to hold off on any further proceedings on the work projects case while it appeals a lower court ruling. However, the DTMB wants the process, in general, to move swiftly because “the people of this state rely on the government to timely pass a budget each fiscal year,” read Wednesday’s brief.
House Speaker Matt Hall (R-Richland Township) referenced the $349 million Wednesday during his regular press conference to make the point that the Whitmer administration has clearly done the math on which individual spending items were impacted by the House Republicans’ work project cuts, and he wants to see whatever list or documentation has been created.
“Let’s see what it is,” Hall said of the unencumbered spending. “We’ll look through it, and we’ll say, ‘OK, of that 349 million, let’s make a deal. There’ll be some of it that we want to fund. Maybe there’s some things that are very good, but there’s a lot of that that’s waste, fraud and abuse and needs to be eliminated.”
Meanwhile, Assistant Attorney General Adam De Bear argued in Wednesday’s filing that the state wants the Court of Appeals to rule on the “weighty question” of whether the law the House Appropriations Committee used to reject about 25% of the administration’s work project requests from November is constitutional.
The state filed an appeal with the Michigan Court of Appeals and asked the Michigan Supreme Court to consider the matter on Jan. 27, according to court records.
DTMB has asked the higher courts for a decision by Feb. 13 “or as soon thereafter as practicable.” That date marks the deadline for the first step in the Fiscal Year 2027 budget process as set by statute.
The lawsuit followed Attorney General Dana Nessel’s formal opinion holding that the law the House Appropriations Committee used to deny that spending through the “work project” process is unconstitutional.
The Committee’s actions disapproved $644.9 million in designated work project appropriations. Those projects span 18 departments and agencies. The projects include a prenatal and infant support program, opioid settlement funds for healing and recovery efforts, nurse workforce development, Native American health services and more.
In January, Court of Claims Chief Judge Michael F. Gadola granted a preliminary injunction blocking the spending of the work project funds as he believes the Republican-led House showed a likelihood of success on the merits.
In the filings, de Bear argues that the House is asking the court to enforce an unconstitutional statute.
De Bear argued that the Legislature’s power for funding appropriation is through bills passed and presented to the Governor.
“Once an appropriation becomes law, the Legislature’s role ends,” he noted. “It cannot claw back executive authority through a committee veto.”
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