Trump and Musk loom over Whitmer’s incoming budget proposal

This week, the governor of Michigan is anticipated to present her proposed budget to lawmakers. However, a new White House administration might make it more difficult for her to get money for the initiatives she wants to work on.

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    The Michigan governor will unveil her budget for the state this week
    
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    While he won’t be in the room, President Donald Trump and his tariffs looms large over Gretchen Whitmer’s plans
    
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    Also present is Elon Musk’s attempts to trim the federal budget.
    

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  The Michigan governor will unveil her budget for the state this week
  
• 
  While he won’t be in the room, President Donald Trump and his tariffs looms large over Gretchen Whitmer’s plans
  
• 
  Also present is Elon Musk’s attempts to trim the federal budget.
  

FOX 2, Lansing, Mich.On Wednesday, the governor of Michigan will present her budget to the legislature. Even though President Donald Trump won’t be present, his legacy and the federal policies he has put in place will be very noticeable.

In the last two years of her second term, Gretchen Whitmer will try to cross more things off the list of objectives she set out to do six years ago when she was first elected.

Based on the figures:

Ahead of difficult budget negotiations, Michigan has one advantage: an increase in state tax income is anticipated.

“We’re projecting combined revenues to rise about 5.6% in fiscal year 2026,” University of Michigan economist Gabriel Ehrlich stated. “Of course, there are always risks to our forecast.”

Michigan has been successful in obtaining funds from the federal government, which accounts for roughly 42% of its total budget.

However, such strategy has its own hazards in the context of White House changes.

Overview:

Trump’s tariff plan is another danger that might harm Michigan’s economy, particularly in the auto and agricultural sectors.

A 10% tax on Chinese goods is in place, but plans for tariffs on Canada and Mexico are on hold.

The state would receive less money if the auto industry was affected.

Federal funds flowing into Michigan may also be impacted by Elon Musk’s tearing through the federal government in an attempt to cut spending.

Look more closely:

In addition, Whitmer has plans to use $2 billion from the budget to construct 11,000 new affordable housing units and a new preschool for three-year-olds.

In addition, she wants to increase state funding for public colleges, maintain free school breakfast and lunch programs, and provide free tuition for community college students.

The Source: This story was based on data from the University of Michigan’s economic projection.