Michigan News And Capitol Report, Week Ending Friday, October 16th, 2026

Michigan Unemployment Rate Stuck At 5% In September

The seasonally adjusted unemployment rate has remained at 5% for the majority of 2026 and didn’t budge in September, according to data from the Michigan Department of Technology, Management and Budget.

Employment went down by 27,000 between August and September, while the number of people on unemployment went up by 1,000, which resulted in the labor force coming down by 26,000 over the month.

“Michigan’s labor market cooled as payroll jobs dipped in the third quarter. Declines were concentrated in the other services and professional and business services sectors this quarter,” said Wayne Rourke, Michigan’s Center for Data and Analytics labor market information director.

The professional and business services sector lost 4,000 jobs over the month, while other services lost 2,000 jobs. Financial activities and Leisure and hospitality each lost 1,000 jobs.

Job gains came from construction and manufacturing, which each gained 1,000 jobs.

The overall jobs went down by 4,000 over the month.

The statewide labor force participation rate went down by 0.3% to 58.5% as more people left the job market all together.

The employment-population ratio also went down by 0.4% to 55.5% in September.

Whitmer OKs Red-Dyed Diesel For Farm, Forestry Trucks

Gov. Gretchen Whitmer signed an executive order (EO) Monday declaring a statewide energy emergency, which suspends the rules regarding red-dyed diesel for some farm and forestry vehicles.

Red-dyed diesel is a tax-free fuel used by off-road vehicles on farms and in logging operations. Now, because of the volatility of prices and tightened global fuel supplies, Whitmer signed the EO allowing for the dyed diesel to temporarily be used on Michigan roads.

"The Iran War, supported by D.C. Republicans, continues to raise the price of everything, and exorbitant diesel prices are hitting Michigan farmers and loggers in the middle of harvest season," Whitmer said. 

The order she signed Monday would be effective immediately and expires not later than Dec. 31, unless Whitmer ends it earlier. 

"While I can't control what's happening at the federal level, I can try to protect Michigan's economy. This order will allow farm and logging vehicles to use dyed diesel on our highways without risk of penalty," she said.

President Donald Trump signed a similar executive order on Oct. 5 that allowed farmers and truckers to use red-dyed diesel between Oct. 5 and Dec. 31, the idea being it would allow excise taxes to be avoided and lower the cost of diesel.

Reuters reported that red-dyed diesel is the exact same as other diesel fuel, but with red-dye added that allows the tracking of violators circumventing the fuel tax. The problem is the use of red-dye fuel is not as widely used and may be harder to find outside of stockpiles in rural areas. 

Patrick De Haan, head of petroleum analysis at GasBuddy, said the national average of diesel is $6.25, which is down nearly six cents from last week, but up $2.64 from last year and up six and a half cents from last month.

"On the policy front, the Trump administration's proposed diesel deal raises more questions than it answers, and I remain skeptical that it will deliver significant relief to the trucking industry and consumers who depend on diesel," De Haan said.

De Haan cautioned that hurricane-related refinery uncertainty from Hurricane Isaias and geopolitical tensions could reverse the decline.

"It is far too early to declare the pressure on fuel prices resolved," he said.

Ex-MCSC Chair Sues MERC Over Unionization Of Caregivers

A former Michigan Civil Service Commission (MCSC) chair is challenging state laws that allow home help caregivers to unionize.

In a complaint filed in the Court of Claims, former House Speaker Jase Bolger's lawsuit seeks to invalidate portions of two laws enacted in 2024 that designated home help caregivers as public employees solely for collective bargaining purposes.

Bolger, who is represented by the Mackinac Center Legal Foundation, argues the legislation violates the Michigan Constitution by circumventing the MCSC's authority over state employment.

"Michigan's Constitution puts safeguards around state employment for a reason: to keep politicians from using it to serve special interests," said Bolger. "Having served on the Civil Service Commission, I understand the importance of those protections. 

"I'm bringing this lawsuit not just because this skim is a scam but because the Legislature cannot sidestep the Constitution to benefit a major donor, no matter how big and powerful that union is," he added.

The lawsuit names the Michigan Employment Relations Commission (MERC), three of its commissioners, the Michigan Department of Health and Human Services (DHHS) and its acting director as defendants.

A spokesperson with the Michigan Department of Labor and Economic Opportunity said she is looking into the issue while a message seeking comment from DHHS was not returned Monday.

Bolger, who served on the Civil Service Commission from 2016 to 2024 and chaired it in 2023 and 2024, argues that the state Constitution gives the commission broad authority over state employees, including their classification, compensation and working conditions.

The challenged laws, Public Act 144 and Public Act 145 of 2024, established a framework for DHHS to bargain with a union representing home help caregivers, who would be classified as "public employees," even though they remain employed by the individuals receiving their services.

Bolger argues that the Legislature cannot create a special category of state employees exempt from MCSC oversight simply by designating them public employees for collective bargaining. He also contends that DHHS cannot legally bargain with the union.

"Caring for a loved one at home does not make someone a state employee," said Derk Wilcox, Mackinac Center Legal Foundation senior attorney. "Lawmakers cannot turn family caregivers into public employees for union purposes while ignoring the constitutional rules governing state employment."

MERC certified SEIU Healthcare Michigan as the bargaining representative for a proposed unit of 31,616 caregivers following an election in October 2025, according to the complaint.

Of the counted ballots, 4,025 favored union representation and 1,502 opposed it.

The complaint, which seeks to invalidate the election, claims only 17.5% of the proposed bargaining unit submitted counted ballots.

The complaint alleges the legislation was intended to benefit SEIU Healthcare Michigan, which is not a defendant in the case.

Bolger's lawsuit follows a July 30, 2025, lawsuit filed on behalf of caregivers Tammy Martin and Dick Sullivan to prevent the union election.

That case ended with Sullivan's death, and the death of Martin's son, which ended her role as his caregiver. As a result, the parties agreed to dismiss the suit in August without ruling on the constitutional claims.

Bill Scaling Back Institutional Homebuying Restrictions Clears Committee

Large companies could build houses for rent and sell homes they already own under legislation that cleared a Senate committee Wednesday to scale back Michigan’s new restrictions on institutional homebuying.

HB 6243, sponsored by Rep. Bryan Posthumus (R-Rockford), cleared the Senate Regulatory Affairs Committee, 11-0, Wednesday after having passed the House, 83-15, in August.

Posthumus said the law went too far in some places. Without changes, it could discourage construction of rental homes and complicate sales of houses investment companies already own.

His bill would allow companies to build new houses specifically for rent. It also would allow sales of homes investors owned on or before July 21, 2026, or bought legally afterward, without putting the buyer in violation of the law.

“If the goal is to get these homes out of the hands of massive investment firms, we obviously need to let them sell the homes,” Posthumus said in an Aug. 26 press release.

Posthumus told the committee the changes would help increase the housing supply while preserving the law’s goal of giving families a better chance to buy homes.

Opendoor and the National Rental Home Council supported the bill. The Community Associations Institute’s legislative action committee opposed it without explaining its objections during the meeting.

The bill now goes to the Senate floor.

Gambling Advertising Restrictions Held For Further Discussion

The Senate Regulatory Affairs Committee also adopted substitutes for SB 713 and SB 714, which would restrict advertisements for online casino gambling and sports betting, but did not advance either bill.

Brian Merlos, chief of staff to sponsor Sen. Erika Geiss (D-Taylor), said the proposals would prohibit ad placements where more than 30% of the audience is reasonably expected to be younger than 21.

The package also would require Michigan Gaming Control Board approval of advertisements, prohibit deceptive claims and sponsorship agreements with people younger than 21, and allow reasonable local restrictions on gambling signs.

Merlos said substitute language would require gambling advertisements placed in mobile applications to carry an adults-only rating.

Committee Chair Jeremy Moss (D-Bloomfield Twp.) said the volume of advertising has exceeded what he anticipated when lawmakers authorized expanded gambling.

“I don’t think anyone anticipated the proliferation of advertisements,” Moss said.

He also called for more funding to address problem gambling.

Sen. Dan Lauwers (R-Brockway) questioned whether the legislation’s exemptions would leave viewers seeing essentially the same advertising.

Merlos said exemptions would preserve certain promotions during broadcasts, including betting information appearing on-screen, while restrictions would apply to commercial-break advertisements. Other exemptions address venue advertising and network naming rights.

Both substitutes were adopted 11-0.

Athlete Contract Protections Draw University Opposition

Members heard testimony on SB 1017, sponsored by Sen. Sam Singh (D-East Lansing), which would prohibit college athletes’ name, image and likeness contracts and agent agreements from binding them beyond their collegiate athletic eligibility.

Singh said athletes can sign deals without realizing those agreements could limit more lucrative opportunities if they become professionals. The legislation also would prohibit mandatory out-of-state dispute resolution provisions.

Andrew Morris, public policy counsel for the NFL Players Association, said some athletes have accepted relatively small college payments in exchange for commitments involving substantial shares of future professional earnings.

“We’ve also seen contracts that hold college athletes’ name, image and likeness (NIL) rights in perpetuity,” Morris said.

The NFLPA and players associations representing professional basketball, soccer, hockey and baseball players supported the proposal.

The University of Michigan and Michigan State University registered opposition without testifying. The committee took no vote.

We're Off On More Horse Racing Funding Ideas

Horse racing and county fairs would see an additional stream of nontribal online gaming revenue under HB 4346 and HB 4347, sponsored by Rep. Angela Witwer (D-Lansing) and Rep. Tom Kunse (R-Clare), which received testimony in committee Wednesday.

Supporters said the package would strengthen breeding and racing incentives, support fairground improvements and permit county fair racing outside fair week. Kunse emphasized that it would not authorize wagering at county fairs.

Sen. Dayna Polehanki (D-Livonia) challenged his assertion that the bills would not affect school funding, citing a fiscal analysis identifying a corresponding reduction in School Aid Fund revenue.

Kunse said the proposal would preserve the fiscal year 2025 funding benchmark while directing a portion of subsequent revenue growth elsewhere.

“The School Aid Fund is going to see less of an increase,” Kunse said. “To me, that is not a cut.”

Michigan Harness Horsemen’s Association representative Brett Boyd said stronger racing purses would encourage breeding, investment and the return of Michigan horsemen currently doing business elsewhere.

Fair representatives said the funding would help pay for electrical, sewer, accessibility and building improvements, particularly after county fair capital improvement grants were omitted from the new state budget.

The Department of Agriculture and Rural Development, the Sault Ste. Marie Tribe of Chippewa Indians and Attorneys for Animals registered opposition. The committee did not vote on either bill.