Michigan News And Capitol Report, Week Ending Friday, March 13th, 2026

Michigan Businesses Push Back On Tariffs As Whitmer Sends Letter To Congress 

Gov. Gretchen Whitmer led the charge in crafting a letter signed by the governors of 18 other states that urges Congress not to enact President Donald Trump's tariffs that the U.S. Supreme Court recently shot down. Instead, the governors ask Congress to pass statutory constraints on presidential tariff power that include congressional review. 

 She said the states have seen “the consequences” of the tariffs “ripple through every sector of our economy.” 

“Families and consumers are paying dramatically more for everyday goods, with independent economic analyses estimates that these tariffs have cost the average American family hundreds to over $1,000 per year in higher prices.” 

The Michigan Retailers Association on Wednesday announced the results from a survey that backed up Whitmer’s claims that tariffs were impacting business in the state. 

The survey found nearly 75% of Michigan retailers reported a negative or strongly negative impact from tariffs since Trump first announced them in April 2025. The uncertainty around tariffs has also affected 56.1% of Michigan shops. 

One retailer surveyed said tariffs had raised the cost of goods by $50,000 over the year. Other retailers said they had discontinued or not stocked products or items because of tariff costs. 

Tariffs have seen 62% of retailers increase operational expenses, 51.5% saw impacts on plans for the future and 48.5% have seen changes to the volume of sales. 

More than 62% have changed prices on items, 29% have found a new supplier and more than 83% have had to make changes to their normal operations to offset tariffs. 

The Michigan Chamber of Commerce joined with retailers and five other organizations to call for stabilization of trade policies. 

“Michigan businesses must compete every day in a complex global marketplace, and their success supports families and communities across our state. That’s why thoughtful, non-partisan discussions about trade and tariff policy – grounded in clarity, predictability and long-term growth – are so important,” said Michael Alaimo, the Michigan Chamber senior director of legislative and external affairs. 

State Seeks To Regulate 'Work Now, Pay Now' Services 

At some jobs, employees can get a portion of their paycheck before payday — say $100 — and have it automatically deducted when their full check arrives.  

But these “earned wage access," services operate in Michigan with little oversight — which is what led Rep. Matthew Bierlein (R-Vassar) to spearhead the 12-bill package the House Regulatory Reform Committee heard testimony on Thursday.   

The legislation would create a regulatory framework for companies that offer early access to wages workers have already earned. Under the proposal, providers would have to obtain a license from the Department of Insurance and Financial Services, clearly disclose any fees and offer at least one no-cost option for accessing funds. The bills would cap transaction fees at $7, prohibit providers from charging interest, late fees or penalties and bar them from sending unpaid balances to collections or reporting them to credit agencies.  

Bierlein emphasized the services are fundamentally different from payday loans. 

“These are not payday loans. No loan is issued, no interest accrues, and consumers are not borrowing money,” Bierlein told the committee, arguing workers are simply accessing wages they have already earned before their scheduled payday. 

However, opponents say the distinction is largely semantic.  

Libby Benson, a consumer attorney with the Michigan Poverty Law Program, and Monica Burks, policy counsel with the Center for Responsible Lending, argued the products "operate like aggressive payday loans.” 

While the services may not technically be labeled loans, they said the fee structures and repayment model can still push workers into the same borrowing patterns that payday lending is known for. 

Benson said many users end up paying fees repeatedly for small advances, which can add up quickly. Studies cited in testimony suggest users often pay hundreds of dollars annually in fees and may take out advances multiple times in a single pay cycle. 

Burks said the structure of the products can create a cycle where workers continually borrow against their upcoming paycheck just to cover everyday expenses like food or transportation. 

Once they opened for questions, Rep. Angela Rigas (R-Caledonia) asked if they had any suggestions to make the package while also questioning their characterization of the products functioning as loans. Then the exchange quickly grew tense when Rigas pressed Burks about her organization's ties to Self-Help Ventures and Self-Help Credit Union.  

Rigas suggested the group opposing the legislation may also profit from financial products aimed at consumers with lower credit scores.  

“Is it fair to say that you're here today in opposition of these bills because your organization is one of the organizations that I would say probably preys on the people with low credit ratings by offering high-interest credit cards to those that are desperate to access to credit?” Rigas asked.  

Burks rejected that characterization, saying she was testifying because her organization has reviewed “hundreds of thousands of transactions” and concluded earned wage access products are not a sustainable financial solution for struggling workers. 

Temporary Workers Can Stay At Campgrounds Longer Under House Bill 

Individuals staying at campgrounds don't have to leave after 180 days, as is the current requirement, if there's a local housing shortage, a workforce shortage, or a recent state of emergency, under legislation that passed the House on Tuesday, 89-18. 

Rep. Rachelle Smit (R-Shelbyville)'s  HB 5430 was prompted by the state Department of Environment, Great Lakes and Energy (EGLE) interpreting “temporary” campground stays as 180 days or less, forcing some campers to leave even when they had nowhere else to go. In some cases, this is impacting workers who are truly staying in an area temporarily, such as utility crews or traveling nurses. 

“By expanding this definition and not allowing EGLE to implement its arbitrary rules, we can help solve the housing problem in our state,” Smit told a House committee earlier this year.  

Reps. Gregory Alexander (R-Carsonville), Noah Arbit (D-West Bloomfield), Julie Brixie (D-Okemos), Steve Carra (R-Three Rivers), Brenda Carter (D-Pontiac), James DeSana (R-Carleton), Emily Dievendorf (D-Lansing), Kimberly Edwards (D-Eastpointe), Jaime Greene (R-Richmond), Peter Herzberg (D-Westland), Mike Hoadley (R-Au Gres), Kara Hope (D-Holt), Matt Maddock (R-Milford), Reggie Miller (D-Belleville), Tonya Myers Phillips (D-Detroit), Veronica Paiz (D-Harper Woods), Carrie Rheingans (D-Ann Arbor) and Donni Steele (R-Lake Orion) voted against the bill.  

Dievendorf said the original version offered a broader way to address housing shortages and that the final legislation was a “missed opportunity” to better utilize existing spaces for temporary shelter. 

The original bill allowed a local government to identify a local housing emergency based on Census data or other federal data that shows a rental vacancy rate that is below 5% or the median gross rent exceeds 30% of the median household income. 

“I think it's important to note that the legislation in its original form still left the decision up to the local governments and our campgrounds,” Dievendorf said.  

As part of a four-hour session, the House first passed HB 4949, sponsored by Rep. Jennifer Wortz (R-Quincy), on a 56-51 party-line vote. The bill expands liability protections for sport shooting ranges, shielding owners, operators and users from civil lawsuits or criminal prosecution tied to noise complaints when ranges follow generally accepted operating practices. 

The legislation would also ensure those protections remain in place even if ranges undergo upgrades or expansions, including safety improvements or ecological updates, so long as the facilities continue to comply with accepted operational standards. 

The House also approved a two-bill package aimed at cracking down on cargo theft. HB 5125 passed 87-20 and would allow courts to impose an additional prison term of up to 10 years for individuals convicted of stealing commercial cargo shipments.  

HB 5126 passed 86-21, updating Michigan's sentencing guidelines to reflect the new cargo theft offense created under the package. 

Money Transmission Modernization — A Bill Package Nearly As Confusing As Its Name 

The House Finance Committee on Tuesday adopted a substitute for the lead bill in the package HB 5544 through HB 5550 that would create the “Money Transmission Modernization Act,” updating how Michigan regulates companies that move money on behalf of businesses.  

Rep. Sarah Lightner (R-Springport), the lead sponsor, said the legislation would require payroll processors and similar financial service providers that collect and send payments, such as wages, taxes and other deductions, to be licensed and regulated by the state if they are transmitting money for clients.  

The bills aim to align Michigan with national standards as more businesses rely on third-party services to handle payroll and other financial transactions across state lines. 

Lightner said the substitute corrects a drafting error that would have accidentally exempted payroll processors from the law, adding that companies that transmit money on behalf of businesses should be regulated under the same standards. 

But Lori Brown, representing the Independent Payroll Processors Association, testified against the substitute, warning the change could hurt smaller payroll companies. Brown said there are roughly 3,000 small payroll processors in Michigan, many with only five to fifteen employees, and argued the additional regulatory requirements could push some of those businesses out of the market. 

Still, Lightner pushed back on those concerns after the committee meeting. Lightner said the bill is aimed specifically at companies that collect and transmit money on behalf of businesses, not firms that simply calculate payroll like accountants.  

She added that some payroll processors are currently moving client funds in Michigan without being licensed and said the package would bring those companies under a consistent regulatory framework, with a tiered fee structure through the state’s Department of Licensing and Regulatory Affairs. 

Brown suggested the structure of the proposal could benefit larger national payroll providers. She specifically pointed to companies like ADP and Paychex, arguing larger firms would be better positioned to quickly onboard employers that smaller processors might have to turn away under stricter regulatory requirements. Every angle of this law, she said, benefits ADP. 

After Brown’s lengthy testimony criticizing ADP’s role in the industry, Chair Mark Tisdel (R-Rochester) quipped, “So how do you feel about ADP?”