Federal Shutdown Continues, Chamber Voices Michigan Impact Concerns

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October 09, 2025

By The Michigan Chamber ● Oct. 9, 2025

Covering what's hot this week or could affect you and your business.

 

Federal shutdown continues, Chamber voices Michigan impact concerns

What happened: With Congress and the Trump Administration unable to reach an agreement on a Continuing Resolution for funding, the federal government has now been shut down eight days. It is the sixth time since 1995 that the government has shuttered.

  • History shows that shutdowns have ripple effects across the U.S. economy. For example, when the government partially shut down from December 2018 to January 2019, analysts estimate it reduced economic output by $11 billion in the following two quarters, including $3 billion the U.S. economy never regained.

While some federal agencies have funds to keep employees working, many have had to furlough federal workers until an agreement can be made.

What we’re saying: The Michigan Chamber has continued to call on Congressional leaders to find a solution to restore stability and bring the federal government back to work.

  • “Michigan families and job creators can’t afford the instability of a federal shutdown. Protracted political debates and dysfunction in Washington create uncertainty and risk negatively impacting Michigan communities, schools and business districts.” said Jim Holcomb, President and CEO of the Michigan Chamber of Commerce.

What’s next: While every day brings new opportunity for resolution in Washington, a timely end to the shutdown does not appear to be in sight. Most up-to-date reporting indicates that Congressional leaders are not publicly meeting, although private discussions may be ongoing.

  • The MI Chamber will remain actively engaged with Michigan’s Congressional delegation, emphasizing the urgent need for action. A prolonged shutdown could further harm Michigan businesses, which are already facing significant economic challenges.

For more information, contact Mike Alaimo.

 

 

Legislature votes to split from federal tax code, what it means for you

What’s new:   As part of the final budget negotiations, state lawmakers voted to “decouple” from numerous federal tax reforms in the One Big Beautiful Bill Act (OBBBA). This decision significantly increases Michigan businesses’ state tax bills  and adds new administrative headaches for job providers.

Why it matters: Recent reforms under OBBBA were designed to strengthen U.S. competitiveness – helping companies expand, reshore operations and invest in workers. Michigan policymakers, however, chose to go their own way by passing HB 4961, separating from those pro-growth provisions.

  • For decades, Michigan has aligned its tax code with the federal government to simplify compliance and encourage investment. But, by breaking that link, lawmakers effectively imposed a $2 billion tax hike over the next five years and created a far more complex, confusing and less competitive tax environment for Michigan employers.

The bottom line: Michigan businesses will no longer be able to use several provisions in Michigan tax code to calculate their taxable income and liability (see full list of these provisions no longer permissable here).  

  • Some argue this is only a temporary timing difference – but that’s simply not true. Unless Michigan law is changed, this decoupling is permanent, leaving Michigan companies paying higher state taxes while competitors in neighboring states continue to benefit from these reforms.

What we’re doing: The Michigan Chamber is actively exploring whether lawmakers are open to restoring alignment with these federal tax reforms so Michigan employers can benefit too. We’re also making clear that this move represents a permanent tax increase on businesses in our state and a step backward for Michigan’s economy and prosperity.

For questions or more information, contact Randy Gross.

 

Michigan’s Capitol and news — Are you in the Inner Circle?

Last week brought turbulence in Lansing — and beyond. Michigan narrowly avoided a state government shutdown after last-minute budget negotiations, while instability continues at the federal level with no end yet in sight. 

For Michigan employers, the question remains: What does this mean for us?

For members of the Michigan Chamber’s Inner Circle, the answer is clear — and accessible.

What happened:  As budget talks stalled and the risk of a shutdown loomed, Inner Circle members were invited to a special briefing with our top-ranked advocacy team. The exclusive session delivered real-time insights on:

  • What was happening behind closed doors in Lansing

  • How last-minute deals could affect employers

  • How businesses could engage to effectively to protect their interests and share impacts.

Why the Inner Circle:

  • Timely, insider access: Hear it directly from the experts.
  • Strategic briefings: Regular legislative update meetings with our lobby team and live Q&A offer deep dives into:
    • Regulatory shifts and legislative priorities
    • Political dynamics and leadership changes
    • Threats to employment law, tax policy and business stability
  • Actionable intelligence: Receive curated updates to help brief your teams and prepare for what’s next.

The bottom line: In times of political uncertainty, information is power. The Inner Circle is your gateway to understanding what’s really happening in the Capitol — and how to stay ahead. It's more than a membership, it’s your strategic advantage in a volatile policy environment.

Join the Inner Circle by contacting Amanda Toy today.