Updated Oct. 1, 2025
The federal budget deadline has come and gone, and political gridlock in Washington, D.C., has triggered a federal government shutdown that is creating significant uncertainty and disrupting Michigan’s economy. This failure to avoid a shutdown creates an unstable environment for businesses, threatening everything from daily operations to long-term investments.
This shutdown presents challenges across several key sectors. Michigan’s health care providers face a potential telehealth cliff, as the COVID-19 pandemic-era rules that expanded virtual care could lapse, disrupting services for Medicare beneficiaries, especially in rural areas. The real estate market could see significant delays, with a potential lapse in the National Flood Insurance Program threatening to halt approximately 1,300 property closings nationwide each day. Furthermore, furloughs in the Environmental Protection Agency are halting environmental permit processing and stalling projects across the state.
Beyond the immediate disruptions, the proposed funding bills include provisions that are inherently counterproductive to business interests and economic development.
The proposed 30% reduction to the Department of Labor’s budget would halve the funding for the Job Corps, severely impacting workforce development programs that businesses rely on for skilled talent. Similarly, a proposed $264 million cut to the Commerce Department would limit resources for the International Trade Administration and the Economic Development Administration, which are crucial for helping Michigan businesses expand and attracting new investment.
These cuts, combined with a proposed $12 billion reduction for the Department of Education, threaten to undermine the educational foundation necessary for a robust talent pipeline with sustainable longevity.
The shutdown’s impact on consumer confidence stands to slow spending and create a ripple effect across the entire economy.
Michigan businesses need stability and predictability from the federal government to invest, hire, and grow.
The Detroit Regional Chamber will continue to advocate for passing budgets on time or early, both in Michigan and in Washington, D.C., as well as for commonsense solutions that support a pro-growth business climate.