Michigan News And Capitol Report, Week Ending Friday, October 2nd, 2026

Labor Taking Another Pass Around 'The Death Star'

Sen. Sean McCann (D-Kalamazoo) announced a renewed effort to restore home-rule authority to local governments by reintroducing legislation to repeal two Rick Snyder-era state preemption laws.

Sen. John Cherry (D-Flint) and SEIU members stood alongside McCann on the steps of the state Capitol, taking aim at Public Act 105 of 2015, dubbed the "Death Star" bill by critics, and Public Act 98 of 2011. They argue that state restrictions passed over a decade ago have tied the hands of local leaders trying to address wage stagnation and cost-of-living pressures in their own backyards.

Public Act 105 prohibits municipal governments from passing local ordinances regulating employee wages, fringe benefits, paid leave, scheduling, and apprentice requirements, while Public Act 98 similarly restricts local units of government from requiring Project Labor Agreements on publicly funded construction projects.

McCann, who served on the Kalamazoo City Commission before entering the state Legislature, says the laws have taken decision-making authority away from cities, counties and other local governments.

"Local governments should have the power to make local decisions," McCann said. "I’m proud to announce that I’m reintroducing legislation to repeal the Death Star bill and reinstate much-needed local authority over workplace guidelines. If you're a fan of Star Wars, you know what ultimately happened to the Death Star. It blows up."

The press conference on the Capitol steps opened with testimony from Linda Hall, an SEIU Local 1 steward at Detroit Metro Airport, who described how state preemption directly impacts frontline airport and arena workers. Hall noted that under current state law, authorities like the Wayne County Airport Authority or local industry boards are barred from establishing living wage thresholds for their workers.

"In 2015, Michigan legislators decided that in this state, decision-making would become top-down, not bottom-up," Hall said. "It feels like our cities are under corporate rules instead of home rules."

Cherry, an eight-year SEIU member who originally sponsored the legislation in the previous session, framed the reintroduction as an essential step for community representation and working families.

"When you talk about elected leaders who are closest to the people, it's your local elected leaders, your council people, your mayors, your township boards," Cherry said. "We shouldn't be taking away their power to help their constituents."

Representing unionized construction workers across the state, Jacob Toomey of the Laborers' International Union of North America (LiUNA) emphasized that repealing PA 98 would allow municipalities to utilize PLAs to guarantee safety standards and apprenticeship training on local infrastructure projects.

"This is about taking out corporate interests who have been fighting to keep your wages low," Toomey said. "It's time to put these decisions back into the hands of the people closest to the project, which is the workers and the communities."

While labor leaders and local officials view the repeal as a necessary restoration of local control, the effort has faced opposition from business organizations, which have argued that repealing the laws could create different labor requirements across Michigan and increase costs and regulatory burdens for businesses and public projects. 

In 2023, groups including the Michigan Chamber of Commerce and Small Business Association of Michigan opposed the repeal effort.

Small Biz Wants Health Care Costs Tackled First

Two-thirds of small business owners surveyed by the Small Business Association of Michigan (SBAM) said containing employee health care costs should be the top priority for Michigan’s next governor and Legislature, ahead of taxes and workforce availability.

The survey, conducted in August and September, found 84% of respondents reported employee health insurance premium increases of up to $2,000 per employee from 2025 to 2026. The remaining 16% reported increases of $2,000 or more per employee.

“The small businesses of Michigan are varied in many ways, from geography to industry, but there is one major thing they’re united on: they are being absolutely crushed by the increasing costs of health care,” said SBAM President and CEO Brian Calley.

Calley has flagged increasing health care costs all year.

Two-thirds of respondents also said Michigan is becoming less friendly to small businesses. Meanwhile, 69% said they increased wages and benefits in the past year to attract or retain employees, and 77% supported legislation allowing businesses to purchase coverage through a self-insured Association Health Plan.

Business confidence was largely unchanged: 49% said their confidence in their business’s future stayed the same during 2026, while 29% reported a decrease and 22% an increase.

Of those surveyed, 81% owned businesses with 50 or fewer employees. SBAM’s release did not provide the survey’s sample size or margin of error.

Ford, JPMorganChase Set $1B Goals For Michigan Manufacturing Initiative

Ford Motor Company and JPMorganChase each set a $1 billion goal for contracts and financing over the next decade through a new Michigan initiative designed to help suppliers secure customers and expand production.

Gov. Gretchen Whitmer joined the companies, Michigan Central and Newlab to announce Michigan LIFT (Launchpad for Industrial Innovation & Transformation) during a broadcast on Bloomberg News.

Ford put in $1 billion to be awarded to suppliers to help forward the industrial future by closing a skills gap with workers that was featured at a conference, named Ford ACCELERATE, to be held on Sept. 30 in Detroit (https://www.fromtheroad.ford.com/us/en/ford-accelerate).

JPMorganChase would finance up to $1 billion in debt capital to the suppliers of the program.

The initiative will connect manufacturers seeking solutions to production and supply-chain problems with suppliers offering relevant technologies. Companies selected to move forward could receive help coordinating financing, state economic development resources, workforce assistance and production support.

The Michigan Economic Development Corporation (MEDC) will coordinate the state’s participation. The announcement did not specify a dollar amount for state support.

Michigan Central will provide testing and production-development space within its 30-acre Detroit district. Newlab aims to provide $20 million in in-kind support to help companies turn technologies into commercially viable products.

“Michigan LIFT is about helping solve real manufacturing challenges faster,” said Ford President and CEO Jim Farley. “It connects innovators, suppliers and manufacturers with the support they need to scale.”

Michigan Central, Newlab and MEDC also aim to recruit 10 to 20 additional industrial buyers representing more than $1 billion in annual demand commitments by the end of 2036.

The effort grew out of a June summit hosted by JPMorganChase and the state in Detroit. Participants identified obstacles facing suppliers trying to expand, including uncertain customer demand, delayed financing, worker shortages and complicated supplier qualification requirements.

Manufacturers will identify needs through “Open Calls,” and suppliers can submit proposed solutions at michiganlift.org. Eligible applicants will be referred to industrial buyers for evaluation. The program is open to companies seeking to establish or expand production in Michigan, while participating buyers can be based elsewhere.

The funding will support manufacturing, robotics and welding training, along with employer connections, job placement and transportation assistance for trainees.

Newlab in Detroit will put down $20 million in support.

The program will be run through the Michigan Economic Development Corporation (MEDC) and will be in charge of using any state economic development programs to support Michigan LIFT. 

MEDC, Michigan Central, and Newlab are looking to attract 10 to 20 new industries worth $1 billion by the end of 2036.

Ford Philanthropy and JPMorganChase announced a combined $550,000 for Focus: HOPE, the Detroit nonprofit providing education and job training.

Michigan Farmer’s Solar Project Grant Reinstated

An eighth-generation Michigan farmer said the federal government has reinstated a grant that will allow his family’s farm to complete a planned $120,000 solar project.

Kyle De Beausset told MIRS on Tuesday he was disappointed the U.S. Department of Agriculture canceled his Rural Energy for America Program (REAP) grant in April, but he said his luck has changed.

“I just got a call from the USDA that they’re going to reinstate funding and that they’ll be sending the paperwork for me to sign by the end of this week,” he said.

The announcement came just one day after the Environmental Law & Policy Center announced a lawsuit challenging the agency’s efforts to write solar energy out of REAP.

Jessica O’Donnell, senior attorney with ELPC, said they are “happy” to hear grant funding us being restored, but they will ensure that “every single farmer and rural small business” is treated fairly.

“Just days after we filed a lawsuit against the U.S. Department of Agriculture, the agency has begun to reinstate at least some of the grants that had been promised to farmers and small rural business under the REAP program,” she said. “… We will fight to ensure solar remains a key part of this program going forward.”

The program – created in 2002 to help farmers and rural small businesses invest in renewable energy – funded billions of dollars in projects in rural America, but the Donald Trump administration pulled all solar language from the bipartisan legislation and retroactively reneged on millions of dollars promised to farmers and rural small businesses, like the de Beausset family farm, which already invested money and time into solar projects.

The restrictions include limits on ground-mounted solar projects, projects on designated agricultural land and projects containing components made in countries classified as foreign adversaries, according to the complaint.

Alec Lloyd, public information officer for USDA Rural Development’s Michigan office, said Michigan has 69 REAP grantees receiving a total of $25.2 million. Of those, 59 have renewable energy projects, including solar, wind, geothermal and biomass, while 10 have energy-efficiency projects involving improvements such as HVAC systems, lighting and insulation.