Hall: Budget deal ends attorney general’s lawsuits against oil companies, feds

Michigan’s enacted budget for 2027 prohibits Attorney General Dana Nessel from suing oil and gas companies or continuing her legal conflict with the federal government, House Speaker Matt Hall, R-Richland Township, said during a July 7 news conference.

Lawmakers changed boilerplate language on page 26 of Senate Bill 878 to read, “The Conference included language prohibiting the Attorney General from joining a multistate lawsuit or taking part of a lawsuit against the Federal government or an oil or gas entity except on appropriation or legislative transfer. ...”

The change follows Nessel’s decision to use three out-of-state law firms to sue oil and gas companies over their alleged contributions to climate change. Her office then pivoted that lawsuit’s focus from deception involving climate change to antitrust. A new attorney general, who will take office at the start of 2027, will need to decide whether to continue the lawsuit.

Hall said:

“We wanted to make it very clear what the intention of the Legislature was. The Legislature, and this speaks for the entire Legislature, Republican and Democrat, we all voted for this. We don’t want our attorney general suing the federal government. We don’t want our attorney general filing these lawsuits against oil and gas companies for political reasons. We want her working on consumer protection and fighting against people that are scamming us and all the other legitimate functions of the attorney general, so I was happy we got it in there, and it’s very clear what the Legislature’s intent is for her to spend money.”

The Michigan Attorney General’s office doesn’t need the Legislature’s permission to file lawsuits, Press Secretary Danny Wimmer told CapCon in an email.

“The Attorney General is well within her established authority and historical precedent to initiate litigation like this. In fact, both of her two immediate predecessors in this office filed lawsuits against the federal administration during their tenures without ever needing the Legislature’s permission.

“By her more than 50 lawsuits filed against the current federal administration over their unlawful policies and actions, Attorney General Dana Nessel has preserved or recouped more than $3.4 billion for Michigan residents. These lawsuits against the Trump administration protect the rights, services, and federal funding that Michigan residents depend on. These lawsuits have been an essential bulwark against a cruel and lawless administration, and it is vital that the Attorney General continue to defend the State of Michigan in the courts across the nation.”

The new budget is a “win” for Michigan families, Rep. Cam Cavitt said in a news release.

“This is a win for families across Northern Michigan and throughout the state,” Cavitt, a Cheboygan Republican, said. “The House put forward a clear path to fund the services that matter to the people of Michigan while cutting fraud and failing government programs.”

The $75.2 billion budget spends less in state money than its predecessor.

The 2027 budget also details a framework for preventing the attorney general from targeting oil and gas companies with politically motivated lawsuits, Cavitt said.

“No industry should have to wonder whether it will become the next political target simply because it is successful,” Cavitt said. “We can’t allow the attorney general to punish lawful businesses just because of the product they produce. Elected officials should not be using taxpayer-funded litigation to accomplish actions that the voters did not ask for.”