Michigan Avoids Immediate Shutdown; Budget Details Pending

Michigan leaders said state government operations will "run as normal" after the Oct. 1 budget deadline while lawmakers finish a bipartisan budget framework reached last week, averting an immediate shutdown for now. The announced package funds state and local roads — including a proposed 24% wholesale marijuana tax to help pay for projects — and includes tax cuts for seniors and working families, Medicaid protections, free breakfast and lunch for students, and reforms to reduce waste, fraud and improve transparency. Gov. Gretchen Whitmer, House Speaker Matt Hall and Senate Majority Leader Winnie Brinks said the full budget will be passed "this week," urged state employees to keep reporting to work, and said the legislature will vote on implementation bills and send the finalized package to the governor for legal review and signature. Officials have not explained exactly how a shutdown would be avoided if no signed budget is in place at midnight, and have hinted a continuing resolution may be used but provided no definitive legal mechanism. Leaders framed the agreement as a compromise — House Republicans said it aligns more with their priorities while Senate Democrats called it imperfect but still beneficial.