Detroit Regional Chamber Reveals 2025 Legislative Priorities, Immediate Actions

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The Detroit Regional Chamber's Public Policy and Business Advocacy team reveals its 2025 Policy Priorities, which reflect an ongoing commitment to shaping a prosperous future for the Detroit Region by underscoring the importance of fostering innovation, nurturing talent, and promoting economic prosperity.

Chamber Priorities During the First 100 Days

The last days of the 102nd Legislature were crucial for legislative activity. While many key priorities and threats were addressed, a few remained unaddressed and will have significant implications for Michigan's business community.

The Public Policy and Business Advocacy team is taking immediate action on the following items during the first 100 days of the 103rd Legislature.

Earned Sick Time/Minimum Wage

Because the Earned Sick Time Act (ESTA) and Tipped Minimum Wage were not addressed before the end of 2024, your business's sick time policy and overall salary budget will be majorly affected starting Feb. 21, 2025.

Therefore, Michigan businesses must adjust their policies as ESTA currently stands, with regular minimum wage increases, a tipped wage credit phase-out, and extreme changes to earned sick time.

Finding a solution to this issue, especially before Feb. 21, is a top priority for the Chamber's Public Policy and Business Advocacy team and the next Speaker of the House, Matt Hall. However, both the House and Senate will need to quickly reorganize to find more support for amendments that will fix ESTA's dangerous problems for businesses.

Road Funding

Speaker Hall has made road funding one of his top priorities, mainly focusing on funding for local roads. He has indicated a preference for using current funding sources for this purpose.

This topic was discussed extensively during the lame-duck session, including a bipartisan effort to use a corporate income tax to raise new revenue as part of a larger deal that would have included economic development and ESTA.

There are indications that a compromise proposal could involve new revenue and redirecting existing funds. According to the Senate Fiscal Agency, there could be a surplus of up to $1 billion in the next fiscal year. However, the current need for road funding is at least $4 billion.

Economic Development

The Chamber is a long-standing supporter of reliable and sustainable economic development incentives. Efforts to extend SOAR stalled in the lame-duck session. A proposal to provide state funding for the redevelopment of the Renaissance Center also failed to gain traction. Speaker Hall has indicated little willingness to support the Renaissance Center redevelopment, and members from both parties have been highly critical of SOAR projects in the past. The majority of Senate Democrats also have a different approach, focusing on neighborhood development, talent retention and attraction, and housing as the core of their economic development strategy. A SOAR extension and Renaissance Center redevelopment plans will both be uphill fights and will likely require complicated negotiations with the Whitmer administration.

Budget

Michigan Gov. Gretchen Whitmer will give her seventh State of the State address in February, followed soon by her budget presentation, where she will lay out her priorities for the 2025-26 budget year. The Senate Fiscal Agency indicates a surplus of up to $1 billion. Chamber staff expects the Whitmer budget to include investments in public education, supporting increases in staff compensation, and increasing investment in current programs like health, safety, and education. Senate Democrats are expected to support largely in alignment with Whitmer's budget. In contrast, House Republicans are anticipated to propose a new budget that outlines their own priorities. Chamber staff expects that the House Republican budget will focus on redirecting current spending and Corporate Income Tax revenue to local road projects.

Changes to Michigan House Leadership

The 103rdMichigan Legislature's opening session is Jan. 8 and will feature many leadership changes, which the Chamber looks forward to working with.

Speaker of the House: Matt Hall 
Speaker Pro Tempore: Rachelle Smit 
Associate Speaker Pro Tempore: Jay DeBoyer 
Majority Floor Leader: Bryan Posthumus 
Majority Assistant Floor Leader: Brian BeGole 
Majority Caucus Chair: Ken Borton 
Majority Caucus Whip: Mike Harris 

Minority Leader: Ranjeev Puri 
Minority Floor Leader: John Fitzgerald 
Minority Caucus Chair: Stephanie Young 
Minority Caucus Whip: Jennifer Conlin

Public Policy Guiding Principles

Business Climate

A strong business environment is essential for Michigan's global competitiveness. When government pursues regulatory, labor, legal, or tax policies that increase the cost of doing business, it diminishes that competitiveness. The Chamber will support policies emphasizing Michigan's competitive advantages, eliminating disadvantages, and streamlining government processes to grow its economy.

Economic Development

Michigan needs holistic, cohesive economic development incentives. Economic development programs should have longevity across administrations and follow a consistent set of strategic goals that recognize the hyper-competitive global market, expand existing industries, and attract new businesses and talent in areas of our competitive advantage.

Talent

To foster a stronger workforce that will thrive in the 21st-century economy, the Chamber set the goal to increase the postsecondary educational attainment rate to 60% by 2030 - a goal later adopted by the State of Michigan. As part of that, the Chamber supports a "K-12 + 2" education approach, strong college preparation, focus on student success, and promotion of high-value degrees and other credentials.

Mobility

As the home of MichAuto, the state's only automotive, mobility, and technology association, the Chamber knows that Michigan must take a fact-based, business-focused approach to support the industry's evolution despite pervasive politicization, especially around electrification. Policymakers and economic developers should capitalize on Michigan's manufacturing and innovation legacy to solidify its economic future and continue global leadership during this change. It will require investment in the supply chain, innovation, and infrastructure to succeed. The Chamber and MichAuto will support Michigan's prosperous mobility future.

Regional Growth

We are one Region made up of many political entities. The Chamber brings regional leaders together to work on issues of common interest, transportation, economic development, and shared resources. To that end, the Chamber encourages open dialogue, fiscal responsibility, and regional solutions.

Democracy, Equity, and Good Government

The Chamber engages with complex issues that impact society broadly and businesses differently. Employers need a stable, free democracy with a well-educated, civilly engaged electorate. The Chamber expects elected officials to work in bipartisan ways, focusing on constituent needs and inclusive economic prosperity. Further, well-formed policies to achieve economic equity establish long-term economic benefits and grow future business leaders.