Welcome to the January 2026 edition of the Great Lakes Political Report newsletter. This publication is designed to provide you with a quick overview and opinion on current news in the Great Lakes State.

Record-Low Legislative Productivity in 2025

The Michigan Legislature adjourned in December after passing the fewest new laws in modern state history. Divided government between a Republican-led House and Democratic Senate led to stalemates on major issues, with leaders praising and critiquing the slowdown as a sign of fiscal restraint or inaction.

Some laws that were passed were:

The Taylor Swift Bills: Dubbed after the infamous Eras Tour ticket chaos, these laws ban automated bots from scooping up massive quantities of tickets for concerts, sports events, and shows. Scalpers using bots now risk civil fines up to $5,000 per ticket.
Child Care Center Lockdown Upgrades: This bill allowed it so daycares and child care facilities can now install temporary automatic door locks on classrooms.
Cottage Food Freedom Expansion: This loosens rules for "cottage food" operations, allowing online/mail-order sales, third-party delivery, and registration with MSU's Product Center for extra support.
Hunter Safety Goes Virtual: Kids and adults can now complete an online hunter safety course to qualify for a Michigan hunting license. Strong bipartisan backing—making it easier to get out in the woods for future generations.
Auto Repair Fairness Tweaks: New rules help independent repair shops access the same tools and data as dealerships, especially for modern vehicles. As more folks fix rather than replace cars amid rising costs.

Budget Battles and Divided Government Wrap Up

After months of impasses, including disputes over funding cuts and work projects, the 2025 session ended with a finalized budget. Highlights included road funding compromises but ongoing tensions over priorities like education and marijuana taxes.

Major Road Funding Boost: Nearly $2 billion in new ongoing resources, phasing in over four years, for state and local roads. Funded partly by redirecting corporate income taxes and fuel tax adjustments to ensure all pump taxes go to transportation.
New Marijuana Tax for Roads: A controversial 24% wholesale excise tax on cannabis sales expected to generate ~$420 million annually primarily for local/neighborhood roads—making Michigan's cannabis taxes among the nation's highest.
Record Education Investments: $24.1 billion total for education, including a record-high per-pupil foundation allowance of $10,050 and continued universal free school meals.
Tax Relief Measures: Cuts for working families and seniors, including exemptions or reductions on tips, overtime pay, and Social Security income, mirroring federal changes, aimed at lowering costs amid economic pressures.
Government Efficiency and Cuts: Elimination of vacant "ghost" positions; reduced funding for some agencies and economic incentives and increased earmark transparency for legislative pet projects.
Public Safety and Health Protections: Boosts for law enforcement maintained Medicaid coverage amid federal risks; investments in environmental programs and public safety revenue sharing.
Other Inclusions: Funding for Selfridge Air National Guard Base mission, ice storm recovery, no increases to hunting/fishing license fees.

Minimum Wage Increase Takes Effect

Starting January 1, 2026, Michigan's minimum wage rises to $13.73 per hour (a 10% increase from $12.48), part of a phased rollout toward $15 by 2027. This stems from reforms to the Improved Workforce Opportunity Wage Act, also affecting tipped workers' base pay in future years.

2026 Elections Gear Up as a Massive Cycle

Michigan faces a blockbuster 2026 midterm: open races for governor (Whitmer term-limited), U.S. Senate (Sen. Gary Peters retiring), attorney general, secretary of state, all state House and Senate seats, and congressional districts. Early polling shows tight races, with potential for record campaign spending.

Gubernatorial Field Takes Shape

Frontrunners include Democrat Jocelyn Benson (Secretary of State) and Republican U.S. Rep. John James, with Detroit Mayor Mike Duggan running as an independent potentially splitting votes. Other contenders are emerging on both sides amid speculation about Whitmer's post-governorship plans.

Declared Gubernatorial candidates:

Democrats (seeking the Democratic nomination)

Jocelyn Benson — Current Secretary of State
Garlin Gilchrist II — Current Lieutenant Governor.
Chris Swanson — Genesee County Sheriff.
Marni Sawicki — Former mayor of Cape Coral, Florida.

Republicans (seeking the Republican nomination)

John James — U.S. Representative (MI-10)
Aric Nesbitt — State Senate Minority Leader.
Mike Cox — Former Michigan Attorney General.
Tom Leonard — Former Michigan House Speaker.
Anthony Hudson — Truck driver and 2024 congressional candidate.
Ralph Rebandt — Pastor and 2022 gubernatorial candidate.
Evan Space — Traverse City resident and perennial candidate.

Independent

Mike Duggan — Current Detroit Mayor

Be sure to keep an eye out for our candidate postings as we progress in the race.

U.S. Senate Race Becomes National Toss-Up

The open seat, following Peters' retirement, draws big names like Democrats Haley Stevens, Abdul El-Sayed, and Mallory McMorrow versus Republican Mike Rogers. Be sure to keep an eye out for our candidate postings as we progress in the race.

Whitmer's National Role and Legacy Focus

Gov. Whitmer was unanimously selected as vice chair of the Democratic Governors Association in December, boosting her profile ahead of 2026 midterms. In her final year, priorities include student literacy improvements and navigating federal changes under the Trump administration.

Special Election in Senate District 35

A vacant seat triggers a special primary on February 3, 2026, and general on May 5, with competitive fields. The outcome could shift the narrow partisan balance in the Senate ahead of full elections later in the year.

Trump-Whitmer Unlikely Partnership Amid Policy Clashes

Gov. Whitmer forged a pragmatic alliance with the Trump White House in 2025, securing federal wins like F-15EX fighter jets for Selfridge Air National Guard Base and funding to combat invasive Asian carp in the Great Lakes. However, Whitmer pushed back hard on tariffs and proposed Medicaid changes that could cost Michigan hospitals $6B and leave 200,000 without coverage.

Federal DOGE Cuts Spark Michigan Lawsuit Barrage

Trump's bold Department of Government Efficiency (DOGE) slashed wasteful federal spending nationwide, claiming $630M in savings for Michigan taxpayers through trimmed grants including $87M at bloated MSU programs, inefficient health services, and outdated tribal initiatives. In response, liberal AG Dana Nessel launched 41 lawsuits to obstruct common-sense cuts winning a few delays but energizing conservatives for the midterms.