Judge freezes Michigan’s $645M in work projects

A Michigan judge has told the state not to spend $645 million that was cut by the Michigan House Appropriations Committee.

Court of Claims Judge Michael F. Gadola granted a preliminary injunction Jan. 16 in a case brought by the Michigan House of Representatives against the Department of Technology, Management, and Budget.

The House sued after Attorney General Dana Nessel disputed the constitutionality of the spending cut lawmakers approved in December. A House committee voted Dec. 10 to cancel $645 million in spending for work projects.

Nessel declared Jan. 7 that the law used to cancel that spending was unconstitutional. On the same day, the State Budget Office tried to spend the money despite the House vote, according to the lawsuit. The Republican-led Michigan House sued the Department of Technology, Management, and Budget to stop the spending.

Gadola wrote in his ruling that the preliminary injunction prohibits Michigan from spending the money until the court decides if a separate law is constitutional.

“Plaintiff will suffer irreparable harm if defendants encumber, expend, or otherwise utilize those funds designated as work projects that were unencumbered within 15 days before the end of the 2025 fiscal year,” Gadola wrote. “This harm outweighs the harm an injunction may cause to defendants. The public interest will be served by the entry of this preliminary injunction order.”

26-007 Order Granting Preliminary Injunction by mcclallen

House Speaker Matt Hall, R-Richland Township, welcomed the ruling in a news release.

“I’ve said all along that we were going to win this easily, because any fair court would rule in the House Republicans’ favor,” Hall said. “While ultimate Lansing insiders and Senate Democrats are desperate to protect their pork spending, House Republicans are fighting for hardworking taxpayers. This ruling has stopped Dana Nessel’s bogus legal opinion in its tracks, forcing the Whitmer administration to stop illegally spending their slush fund dollars.”

A revenue-estimating conference last week found that the state should expect about $1 billion less in revenue than previously forecast.