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

House moves state budget pieces, includes new increases on business

What’s new: On Thursday night, leaders in the House and Senate, along with the Governor, announced they had reached a tentative deal to finalize the 2025–26 budget just days before the Oct. 1 deadline. The agreement includes nearly $2 billion in additional annual funding for roads. The announcement came after the Michigan House passed several pieces of legislation tied to the negotiated budget — including a series of tax increases aimed at businesses.

Why it matters: A key challenge in the budget negotiations has been balancing competing priorities: identifying billions in additional funding for road projects across the state (a top priority for the Governor), reducing waste and increasing government efficiency (a focus of the House), and protecting key programs such as Medicaid (a priority for the Senate).

The bottom line: While the full details of the budget — including any potential cuts — remain largely unknown (and may still need to be hashed out), the key revenue elements of the agreement include: “Decoupling” Michigan’s tax law from federal tax changes in the One Big Beautiful Bill Act (OBBBA); a revamped Insurance Provider Assessment; and wholesale tax on marijuana. 

What we're saying: We’re encouraged a government shutdown may be avoided, but the lack of transparency around key elements — including the final topline number — makes it impossible to conduct a true cost-benefit analysis.

• We remain concerned that the revenue pieces — especially the “decoupling” changes — will negatively impact businesses. Decoupling from federal tax cuts not only raises taxes on employers large and small, it creates compliance headaches and puts Michigan at a competitive disadvantage against other states.

Go deeper: Read more for details on the key revenue elements or read the full memo outlining our opposition to decoupling.  

Employers face $100K H-1B Visa fee under Trump policy

What happened: Last Friday, President Trump signed a presidential proclamation that bans H-1B employees from entering the United States unless they or their employers have paid a $100,000 fee. The proclamation applies to new, not-yet-filed H-1B petitions. Current H-1B holders, approved petitions, pending petitions as of the Sept. 21 effective date, and individuals with valid H-1B visas are not affected.

Why it matters: The proclamation introduces new compliance obligations for U.S. employers relying on global talent pools for specialized roles by restricting entry of H-1B visa holders unless accompanied by the payment. The moves mark the latest in a series of efforts from the administration to crack down on immigration and place new limits on the types of foreigners allowed into the country.

What's next: The U.S. Chamber is actively pursuing clarification on key questions related to the proclamation and exploring potential responses.

Go deeper: Read on for the full list of key points the U.S. Chamber has shared so far.

• Read the proclamation.
• Read a full legal analysis by our friends at Barnes & Thornburg.

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