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Tuesday, December 24, 2024

Whitmer okays COVID-19 spending plan but says no to small business relief in Michigan

Tim mossholder c8jnjslqm3a unsplash

Many of Michigan's small businesses have been struggling due to lockdowns and restrictions imposed because of COVID-19. | Photo by Tim Mossholder on Unsplash

Many of Michigan's small businesses have been struggling due to lockdowns and restrictions imposed because of COVID-19. | Photo by Tim Mossholder on Unsplash

Michigan has authorized a new COVID-19 relief funding plan, according to reporting from Bridge Michigan.

On March 9, Gov. Gretchen Whitmer authorized spending at least $2.3 billion from the $5 billion in federal funds sent to the state in December.

However, the governor vetoed a total of $652 million in proposals after the Republican-led Legislature failed to negotiate with her. She also dismissed a bill that would have restricted her executive authority when it comes to decision-making about COVID-19.


Gov. Gretchen Whitmer | stock photo

Whitmer's plan will "pump money into several bipartisan priorities, including $110 million for vaccine distribution, more than $1 billion for schools, $150 million for a pay raise for direct care workers and $283 million for an emergency assistance program for families struggling to pay rent and utilities during the pandemic," Jonathan Oosting of Bridge Michigan reported.

However, small businesses that were greatly impacted by COVID-19 will not be given any relief due to Whitmer's rejection of a $405 million business tax-and-fee breaks proposal from the Legislature, after it previously balked at her $225 million business grants proposal.

“The bills I received were not negotiated with me or my administration, and I continue to call on the Legislature to ensure that we work together to ensure we maximize every penny that is available,” Whitmer said, according to Bridge Michigan. “There were problems in the bills that I had to veto, and I expect the Legislature to step up to fix the bill to allocate all of the money so we can get back to normal as soon as possible.”

Whitmer also did not approve $150 million that was intended to "prop up the employer-funded Unemployment Insurance Fund, $87 million in relief funding for private schools and $10 million in grants for parents to cover their children’s summer school expenses," Oosting reported.

The remainder of the funding will remain unspent, and the Legislature will have more room for negotiations due to Whitmer's decision.

During the first week of March, the GOP proposed a $4.2 billion plan, but Whitmer reduced it to $3.5 billion through a number of line-item vetoes. About $1.2 billion of the funding is still in limbo as Whitmer's legal team is reviewing the legality of the language attached to the bill by the Michigan Legislature.

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