What to Expect From Michigan’s Democratic Trifecta 

With Democrats set to control the Governor’s office and both chambers of the Michigan Legislature, a new political landscape will form come January 2027. 

While the full legislative agenda for 2027 has yet to take shape, early conversations are providing a clearer picture of the issues businesses should be watching. Working with other business associations in the state, including the Michigan Chamber of Commerce, the Detroit Regional Chamber’s Public Policy and Business Advocacy team has built out this analysis of what to expect in the first year of the next legislative session and how it will bring significant changes to your business.  

Labor and employment policy will emerge as one of the most consequential areas for employers during the 2027-28 legislative session. 

The main issue to watch is the repeal of local preemption, the Local Government Labor Regulatory Limitation Act, which prohibits local governments from imposing certain employment requirements on private employers. A repeal would give communities greater authority over policies such as local minimum wages and employee benefits, creating a patchwork of employment requirements across Michigan communities. The repeal of the “Death Star” has already been discussed by incoming legislators and is likely to be one of the first bills introduced in January. 

Another proposal likely to receive attention would make striking workers eligible for unemployment insurance benefits. Because Michigan’s unemployment system is funded 100% through employer payroll taxes, changes to eligibility would directly increase employers’ costs. The issue will become particularly significant ahead of the 2028 expiration of the UAW contracts with the Detroit automakers. 

Other labor policies that could surface include changes to independent-contractor classifications, noncompete agreements, pay-transparency requirements, and paid family leave. 

If there is one issue likely to cut across nearly every policy discussion next year, it’s affordability. State leaders have already emphasized reducing costs for Michigan residents, which could translate into legislative proposals addressing energy and utility costs, housing, prescription drugs, childcare, healthcare, or paid family leave. 

On the campaign trail, Governor-elect Jocelyn Benson made bold promises to tackle affordability, including plans to negotiate subnational agreements with Canada directly to mitigate the effects of federal tariffs. Benson also proposed establishing tax credits for childcare and long-term family care but did not address how the state would fund these measures. She has placed blame for high fuel prices on the ongoing war in Iran, calling on the federal government to enact a holiday or suspension on the 18.4-cent federal gas tax. Still, she has recently stated that she is willing to explore lowering Michigan’s 52-cent-per-gallon state gas tax and to work with the Legislature on potential cost-relief measures at the pump. 

Speaker-elect Puri said the incoming Democratic majority will focus on tackling affordability issues including rising utility costs, lagging household incomes and population growth. 

Leader-elect Camilleri’s (D-Trenton) affordability agenda includes legislation to establish a Prescription Drug Affordability Board in Michigan, setting state-imposed payment limits on certain drugs as his answer to the affordability problem.  

For employers, the details of these policies will matter. Efforts to make Michigan more affordable can help attract and retain talent. Still, policies that substantially increase the cost of doing business will run counter to the state’s broader economic competitiveness goals.  

Michigan’s growing data center industry is another area poised for increased attention. Discussions in Lansing have centered on potential new guardrails for data center development, including community engagement, tax incentives, water consumption, and energy costs.  

Benson has called for a statewide moratorium on new data center development. With Democratic control of both chambers, Benson could use her gubernatorial weight to push for legislation to alter Michigan’s zoning act or halt permitting for new construction via an executive order. Camilleri has also voiced interest in pursuing data center regulations, including bans on NDAs for public officials, water-permit requirements, and prevailing wages for construction projects.  

As a member of the Michigan for Responsible Data Center Coalition, the Chamber will continue to push for sound policy that protects taxpayers, expands the tax base, and cements the Detroit Region as a destination for modern enterprise.

With revenue dips affecting the state’s bottom line and a general distrust of the business community, conversations have begun to form around Michigan’s tax base and revenue generation.  

Benson has discussed a blue-ribbon commission on the campaign trail to conduct a top-to-bottom review of how Michigan generates revenue, which could put the corporate income tax in the spotlight. Benson also takes the office at a time when Michigan has a flailing MEDC and little to no economic development incentives to attract, retain, and grow businesses in the state.  

Regardless of which proposals ultimately reach the Governor’s desk, Michigan’s underlying economic challenges remain. Michigan’s standing in several key economic measures includes 43rd in economic performance, 40th in workforce participation, 45th in educational achievement, and bottom-10 per-capita income.  Leaders must consider whether any solution helps Michigan attract investment, grow its workforce, increase incomes, and compete more effectively with other states. 

The weeks ahead should provide considerably more clarity about the direction of the 2027-28 Legislature. Benson has selected Former Congressman Dan Kildee, Cindy Pasky, the President and Chief Executive Officer of Strategic Staffing Solutions, Gary Torgow, the Board Chairman of Huntington National Bank, and Wayne County Prosecutor Kym Worthy as her Transition Team Chairs. Her transition team also includes Chamber members Jeff Donofrio, the President of the Business Leaders for Michigan, Nicole Sherard-Freeman, the President and Chief Executive Officer of the Community Foundation for Southeast Michigan, Fadwa Hammoud, the Managing Member of the Miller Johnson law firm’s Detroit office, and Linh Song, the Chair of the Song Foundation. Benson’s transition team is expected to unveil a “First 100 Days” agenda in the coming weeks. 

There is not expected to be much of a lame-duck session, with little activity expected in December 2026. The Chamber will continue working with policymakers from both parties to advance solutions that strengthen Michigan’s business climate, improve affordability, support talent attraction and retention, and position the state for long-term economic growth.