Michigan News And Capitol Report, Week Ending Friday, April 24th, 2026

Urban Dems See HOPE In Creating Tax-Capture Zones 

A group of Michigan House Democrats on Thursday unveiled a multi-bill “HOPE Zone” package aimed at steering economic investment into struggling communities by redirecting tax revenues and expanding redevelopment tools. 

Speaking at a Lansing press conference, Rep. Helena Scott (D-Detroit) said the proposal is designed to ensure “no community in Michigan is left behind,” particularly those facing long-term disinvestment and limited economic opportunity. 

The package would create designated “HOPE (Helping Opportunity Prosper Everywhere) Zones,” where certain tax revenue generated within those areas would be reinvested locally rather than flowing into the state’s general fund. Those dollars would support infrastructure improvements, workforce development programs and neighborhood services. 

“In simple terms, this legislation redirects tax dollars . . . and channels those resources directly into struggling communities,” Scott said. 

Scott said the plan prioritizes areas with lower median incomes and higher poverty rates, with the goal of attracting small businesses, supporting entrepreneurship and expanding access to good-paying jobs. The initiative would also rely on partnerships with local governments and community organizations to guide investments. 

Rep. Brenda Carter (D-Pontiac) highlighted a workforce component of the package, which would capture a portion of income tax revenue tied to newly-created jobs and reinvest it into training programs. 

“When companies create new jobs, the state already captures withholding tax revenue,” Carter said. “This legislation directs a portion of that revenue . . . into workforce development where it is needed most.” 

She said the approach is meant to better align economic development incentives with community benefits, creating “pathways to stable employment” rather than focusing solely on job creation totals. 

Rep. Amos O'Neal (D-Saginaw) said his portion of the package would modernize the state’s Brownfield Redevelopment Financing Act, allowing more flexible use of tax capture tools to support large-scale redevelopment projects. 

The changes would help turn vacant or underused properties into productive sites while maintaining oversight through local governments and the Michigan Strategic Fund, he said. 

“This is about turning vacant and unused properties into productive assets, revitalizing neighborhoods and expanding the future tax base,” O’Neal said. 

Supporters framed the legislation as a shift toward “community-driven” economic growth. Keith Williams, chair of the Michigan Democratic Party Black Caucus, described the plan as “race-neutral” and focused on reinvesting existing tax dollars back into the communities that generate them. 

“It’s not about handouts . . . but a pathway for wealth in the future,” Williams said. 

Backers said the package builds on existing economic development models but places greater emphasis on equity and local impact. The bills have been introduced but have not yet been taken up for committee consideration. 

Lawmakers said they hope the proposal will gain bipartisan support, positioning it as a strategy to boost both urban and rural economies by investing in people and places that have historically been overlooked. 

Senate Passes Salary History Ban For Employers, More Session News 

The Senate passed, along a partisan line, legislation banning employers from telling job applicants to disclose their previous pay, credit score and past fringe benefits. 

According to Paycor, the human resources and payroll software company, recruiters and hiring managers have "often" asked about salary histories to weed applicants out of their candidate pool, either because their past pay indicates them being too expensive (when it's high) or under-qualified (when it's low). 

But now there is a trend of states enacting salary history bans at various levels, including Alabama, Connecticut, Georgia, Illinois, Massachusetts, Ohio, New Jersey and Pennsylvania. 

SB 145 by Senate Appropriations Chair Sarah Anthony (D-Lansing) establishes both a statewide salary history ban and would prohibit employers from "shutting down" conversations on wages in the workplace. 

Anthony said that, particularly for women and people of color, applicants disclosing their wage histories has oftentimes led to employers questioning things like whether someone who earned $25,000 a year should be paid $40,000 to $50,000.  

"The reality is that what you have made in the past, or your credit score, has no bearing on your ability to do the job that you're applying for," Anthony said. "We want to eliminate any barriers that would prevent folks from being paid well and fairly in the state of Michigan."  

She added that, especially for young people, being asked about credit scores during a job interview can have a freezing effect.  

Before SB 145 passed 19-16, Sens. Thomas Albert (R-Lowell) and Lana Theis (R-Brighton) gave their opposition speeches.  

Albert said that the inclusion of credit history restrictions in the bill raises additional concerns. He said there's no clear evidence linking credit inquiries to gender-based discrimination, adding that credit history can serve as a legitimate risk screening tool for certain occupations.  

He also said that if employers were paying female workers less for the same work, such conduct would already be illegal under federal law and would be prohibited under Michigan's own Elliott-Larson Civil Rights Act.  

"When employees have less information and when employers have less information, it's harder to make strong, competitive offers," Theis said in her own remarks. "The practical impact is a slower, more uncertain hiring process at a time when we should be making it easier to get people into good-paying jobs. Michigan already has one of the highest unemployment rates in the country."  

Earlier this month, the Michigan Center for Data and Analytics published that employment in the state decreased by 10,000 over the month, with the seasonally adjusted unemployment rate being unchanged at 5% between December and January.  

The Senate also passed SB 481 by Sen. Mallory McMorrow (D-Royal Oak) 34-1. It would require motels, hotels and short-term rentals in Michigan to prominently display the National Human Trafficking Resource Center hotline. 

Sen. Jon Bumstead (R-North Muskegon) voted against SB 481.  

Also, SB 463 passed by a party-line and SB 466 passed 20-15, with Sen. Joseph Bellino Jr. (R-Monroe) joining Democrats in support. The two bills are part of a larger bill package the Senate started voting out this term in December, requiring retailers to pay for a three-year, $500 license to sell tobacco and vapor products, with various fees for not properly checking ID and distributing to minors. 

State-Run Insurance Marketplace Being Revisited In Senate 

Senate Democrats are hoping they can lower health care costs by offering Michiganders without employer-sponsored insurance a state-run marketplace instead of the federal Affordable Care Act (ACA) marketplace.  

The ACA marketplace – an insurance-shopping network 530,000 residents used last fall – was in the news last year when Congress let tax credits expire from the Biden administration that had brought down costs for non-Medicaid eligible households. 

By no longer subsidizing insurance, the state's Department of Insurance and Financial Services (DIFS) informed legislators that a 60-year-old couple earning $82,000 a year are seeing their monthly premiums rise from $580 to $1,710. 

Senate Health Policy Chair Kevin Hertel (D-St. Clair Shores) proposed moving Michiganders from the ACA marketplace from one that would be overseen by the state last term, passing in the Senate in June 2024 on a partisan line.  

It was left behind, untouched by the House in the final months of the Democratic trifecta in Lansing. 

During a press conference in Senate Majority Leader Winnie Brinks (D-Grand Rapids)' office, Hertel said that legislators have a responsibility to build a system more affordable, reliable and responsive for the people they serve.  

The caucus called it their "Quality Health Care You Can Afford" agenda.  

Hertel said that transitioning Michigan away from the federally-managed marketplace will allow the state to be more creative, inclusive and "ultimately more cost-effective in the types of insurance products that are available to Michiganders."  

He said that currently, Michigan sends about $70 million to the federal government from enrollment charges. He said that if Michigan could keep that $70 million in state, it could be used to lower premium costs within the individual market.  

Insurers could be incentivized to offer lower premiums by the state providing a "reinsurance pool," Hertel believes. Through the pool, the state would pay for part of high-cost claims for participating health care plans.  

Colorado, which offers a reinsurance pool for its own state-based marketplace, projected in October 2024 that the pool was estimated to save Coloradans 23.8% on their premiums. For a 40-year-old enrollee, the government reported it would mean average savings above $1,500, or up to $5,800 in savings for a four-person household.   

"You could use a portion of this fee that we're talking about, the $70 million. You can use some of that to invest in the reinsurance pools to lower those premiums, that's what they did in Colorado," Hertel said. "But you can also use other state revenue sources, as well. The Legislature would have to make those decisions and make the investments that make sense."  

The federal government is using Michigan dollars from the marketplace on things like TV and radio ads, Hertel described, and Michigan could potentially run advertising and outreach “in a much (more) targeted way, from a state perspective . . . we know where we have the most uninsured and places where we can really get into and try to build up those numbers.”  

However, states are experiencing new projected expenses than they were in 2024 when Colorado's projections came out. For instance, the One Big Beautiful Bill Act (OBBBA) that President Donald Trump signed last summer is anticipated to increase Michigan's Medicaid and SNAP food assistance expenses by more than $1 billion by Fiscal Year (FY) 2032.  

Sen. Sylvia Santana (D-Detroit), chair of the Senate Appropriations health department subcommittee, said she believes there are opportunities to find resources that would support a state-based marketplace as participation in the federal exchange has dropped. 

“Yes, we will find a way to make it work,” she said. 

The Senate Democrats' proposal also includes a tax-free health care savings account that would be offered through the state for Michiganders to put aside savings that can be spent on healthcare.   

The press conference also included calls for a Prescription Drug Affordability Board (PDAB) that could investigate and cap drug prices, as well as the bills recently passed in the Senate to reduce the lasting effects of medical debt. 

61% Of Registered MI Voters Say Yes To Changing Regulations To Build More Homes 

(STERLING HEIGHTS) – Sixty-one percent of registered voters in Michigan believe the state needs more housing, and that regulations should be altered to permit more home-building, according to polling of 1,051 registered from March 30 to April 2 from Americans for Prosperity (AFP) Michigan. 

AFP Michigan has endorsed the Legislature's nine-bill "Housing Now" proposal – which has both Democratic and Republican sponsors – pushing duplex and smaller home construction. 

The bills – HB 5529, HB 5530, HB 5531, HB 5532, HB 5581, HB 5582, HB 5583, HB 5584 and HB 5585 – restrict local governments' ability to regulate, disapprove and extend the permitting timeline for such projects, much to the dismay of the Southeast Michigan Council of Governments' (SEMCOG's)  and other local groups. 

The AFP Michigan's polling found that 64% of participants – including 50% of Republican respondents, 76% of Democrats and 63% of "swing" voters – supported multi-housing units like apartments and duplexes.  

Additionally, 70% of respondents – 64% of Republicans, 77% of Democrats and 68% of "swing" voters – said they were more concerned about rules affecting housing affordability than about changes in neighborhood character.  

Also on Friday, AFP Michigan director Tim Golding moderated a panel called "Is Liberty the Solution to Home Prices?"  

The discussion was part of the 250 Summit hosted by the Associated Builders and Contractors (ABC) of Southeastern Michigan in Sterling Heights. AFP Michigan was part of the summit steering committee, as well as the Gerald R. Ford Presidential Foundation, the Mackinac Center for Public Policy and the American Institute for Economic Research.  

AFP Michigan Director Tim Golding moderates a panel promoting the state House's housing construction bills.  

Golding described a lot of first-time home buyers not wanting 3,000 square-foot homes with two acres of land, which they would need to maintain. He suggested if builders could find zoning locations where smaller homes could be flexibly built, "you can sell them like hotcakes."  

"There's overwhelming support from citizenry in Michigan that want to see zoning changes. They want to see housing be affordable and abundant, so families can stay here, (so) Michigan families can start living their own version of the American dream," Golding said, describing the present-day authority of local zoning and ordinances "not the way our Founding Fathers I think would have envisioned us providing places for ourselves to live."  

Participating on the panel was Ilana Blumsack, the senior housing policy analyst for AFP nationally.  

Blumsack described Montana attempting to address its housing shortage with reforms similar to the Michigan House's proposals, especially in the city of Bozeman, where the population skyrocketed by more than 50% from 2010 to July 2022.  

Montana implemented reforms in 2023 like permitting homeowners statewide to create accessory dwelling units on their property, like turning basements and attics into apartments and setting up small cottages in their backyard. Additionally, a statute was signed to support duplex developments in more places.  

Furthermore, in 2025, Republican Gov. Greg Gianforte signed off on cutting the parking requirements that constructors face. The changes were linked to a task force he convened in 2022.  

The AFP Michigan's 1,051-person polling on housing affordability and support for multiunit housing.  

"The most local form of control is with the property owner," Blumsack said. "We should be doing what we can to ensure those rights remain and to ensure that property owners have the ability to build (accessory dwelling units) if they want to . . . make reforms, repairs and renovations to their homes without excessive regulations whether those are federal, state or even local regulations."

Golding also said in the last 20 years, Michigan has experienced a 70% decline in construction permits being issued for housing.

Christina Mojica of the Reason Foundation think-tank – focused on limited government and competition – said having one parking spot alone can increase rent costs by 6%, and by 12% if two spots are required.  

The Michigan House's bills would limit parking mandates to one parking space per unit. Mojica described mandates for multiple parking spots creating a lot of pressure on working-class renters, who sometimes don't even own a car.  

She addressed questions of whether building smaller homes – like multifamily structures, duplexes and units friendly to a working-class budget – would negatively impact the property values of owners of larger homes. She illustrated how lack of housing can be tied to homeless encampments and extra pressure on shelters as well.

"So when we build more for everyone, it really is to the benefit of all," Mojica said.