U.S. Rep. Bill Huizenga, R-Zeeland, and a Democratic colleague have introduced legislation to reform how Congress tackles the national debt limit and avoid the dangerous and costly brinkmanship that threatens the national economy.
Huizenga and Rep. Scott Peters, D-Calif., last week introduced the Responsible Budgeting Act, a move Huizenga said would provide “a commonsense off-ramp that would defang the politics of the debt ceiling while, importantly, maintaining pressure on Congress to reverse our reckless borrowing problem.”
"Our nation's $36 trillion debt crisis is fueling higher prices and making life increasingly unaffordable for families and small businesses today while also mortgaging our children and grandchildren's future," Huizenga said. "Washington has repeatedly failed to properly complete the budget process over the last two decades. The status quo isn't working. The debt ceiling, in its current form, has yet to achieve its intended and designed purpose.”
"The economy will implode overnight if we play politics with the full faith and credit of the U.S. government. The stock market will crash, interest rates on homes, cars, and credit cards will skyrocket, and Social Security, Medicare, and veterans' benefits could be delayed, among other consequences," Peters added. "This bill will eliminate the dangerous threats of the debt limit while putting us on a path toward a healthy economy. If we can improve Congress' approach to budgeting, we can ensure a stronger, more stable economic future.”
The Peters – Huizenga plan would offer two options for Congress to address the debt limit. The first requires a budget resolution that satisfies specific debt reduction measures while simultaneously passing a joint resolution the president can sign to suspend the debt limit until the next fiscal year.
The second option allows the president to suspend the debt ceiling himself via a written request, which Congress could vote to override within 30 days of its submission. This suspension request must be submitted along with a debt reduction proposal to reduce the debt-to-GDP ratio that Congress must consider.
The bipartisan bill is supported by several organizations, experts, and former policymakers.
"Congress repeatedly flirts with default when trying to increase the nation's borrowing limit," said Michael R. Strain, director of economic policy studies at the American Enterprise Institute.
"Paying the nation's bills should not be a dramatic event featuring the real possibility of a global financial crisis. It is long past time for Congress to address the problems created by the debt ceiling."
"In a year with a potentially damaging fight over the debt limit, the Responsible Budgeting Act would be huge improvement over the status quo," said Zach Moller, director of the economic program at Third Way. "This bipartisan idea recenters the debate about the debt limit around actual fiscal responsibility—not partisan gamesmanship. And it would ensure we do not default, preventing drastic harm to middle-class families across this country."
"On many occasions, the debt limit has served as a moment for lawmakers to consider measures to make our country's budget more sustainable," said former U.S. Sen Kent Conrad, who formerly served as chairman of the Senate Budget Committee. "Unfortunately, it also presents a risk to our economy. The Responsible Budgeting Act would smartly reform the debt limit to eliminate the economic threat while instituting provisions to facilitate a bipartisan budget debate. Both parties should support this legislation."
Huizenga and Rep. Scott Peters, D-Calif., last week introduced the Responsible Budgeting Act, a move Huizenga said would provide “a commonsense off-ramp that would defang the politics of the debt ceiling while, importantly, maintaining pressure on Congress to reverse our reckless borrowing problem.”
"Our nation's $36 trillion debt crisis is fueling higher prices and making life increasingly unaffordable for families and small businesses today while also mortgaging our children and grandchildren's future," Huizenga said. "Washington has repeatedly failed to properly complete the budget process over the last two decades. The status quo isn't working. The debt ceiling, in its current form, has yet to achieve its intended and designed purpose.”
"The economy will implode overnight if we play politics with the full faith and credit of the U.S. government. The stock market will crash, interest rates on homes, cars, and credit cards will skyrocket, and Social Security, Medicare, and veterans' benefits could be delayed, among other consequences," Peters added. "This bill will eliminate the dangerous threats of the debt limit while putting us on a path toward a healthy economy. If we can improve Congress' approach to budgeting, we can ensure a stronger, more stable economic future.”
The Peters – Huizenga plan would offer two options for Congress to address the debt limit. The first requires a budget resolution that satisfies specific debt reduction measures while simultaneously passing a joint resolution the president can sign to suspend the debt limit until the next fiscal year.
The second option allows the president to suspend the debt ceiling himself via a written request, which Congress could vote to override within 30 days of its submission. This suspension request must be submitted along with a debt reduction proposal to reduce the debt-to-GDP ratio that Congress must consider.
The bipartisan bill is supported by several organizations, experts, and former policymakers.
"Congress repeatedly flirts with default when trying to increase the nation's borrowing limit," said Michael R. Strain, director of economic policy studies at the American Enterprise Institute.
"Paying the nation's bills should not be a dramatic event featuring the real possibility of a global financial crisis. It is long past time for Congress to address the problems created by the debt ceiling."
"In a year with a potentially damaging fight over the debt limit, the Responsible Budgeting Act would be huge improvement over the status quo," said Zach Moller, director of the economic program at Third Way. "This bipartisan idea recenters the debate about the debt limit around actual fiscal responsibility—not partisan gamesmanship. And it would ensure we do not default, preventing drastic harm to middle-class families across this country."
"On many occasions, the debt limit has served as a moment for lawmakers to consider measures to make our country's budget more sustainable," said former U.S. Sen Kent Conrad, who formerly served as chairman of the Senate Budget Committee. "Unfortunately, it also presents a risk to our economy. The Responsible Budgeting Act would smartly reform the debt limit to eliminate the economic threat while instituting provisions to facilitate a bipartisan budget debate. Both parties should support this legislation."
Gov. Whitmer Unveils Fiscal Year 2026 Budget
Michigan Gov. Gretchen Whitmer has proposed an $83.5 billion budget proposal for the 2025-26 fiscal year that begins Oct. 1.
“My balanced budget recommendation for fiscal year 2026 doubles down on the kitchen table issues that make a real difference in people’s lives,” Whitmer said in a statement Feb. 5 when the budget proposal was released. “This commonsense budget will lower costs, create good-paying jobs, grow our economy, improve academic results, and support Michigan seniors.”
The budget proposal includes $15.3 billion in the general fund and a school aid budget totaling $21.2 billion.
The governor also proposes a $50 million deposit to the budget stabilization fund, which would bring the rainy-day fund balance to nearly $2.3 billion by the end of fiscal year 2026, an all-time high and double the 2019 balance. Additionally, a $50 million deposit into the rainy-day fund for schools is proposed, which would bring the combined total in reserves to $2.8 billion.
The budget proposal addresses six key areas: lowering costs, creating jobs, education, supporting seniors, protecting and defending Michiganders and making government work better.
In the area of lowering costs, the budget proposal would continue the Working Families Tax Credit, which provided an average of more than $3,500 to 650,000 families last year. It also would set aside $676.1 million to continue providing universal pre-K preschool through the Great Start Readiness Program to an estimated 57,100 children. In addition, it recommends $200 million to continue providing free school meals to all 1.4 million public school students in Michigan, a move Whitmer says would save families $850 per year.
The area of creating jobs includes spending on rebuilding roads and bridges in the state. Whitmer has proposed the following for fixing roads and bridges:
• $4.9 billion in total road funding, including federal, state and restricted funds.
• $112.2 million to ensure Michigan matches all $1.8 billion in federal highway aid.
• $98.9 million to improve state and local roads, highways, and bridges across the state.
• $767 million in total ongoing support for transit and rail programs.
Other line items in the area of job creation include:
• $10 million for Small Business Entrepreneurial Support Hubs to enhance a statewide network of service providers that offer comprehensive resources and critical support to Michigan’s small businesses.
• $10 million to partner with employers to help meet their unique talent needs in industries like advanced mobility, semiconductor, aerospace defense and life science to attract, retain and connect talent with good-paying jobs.
• $125 million to expand CTE programs “Future Ready” pilot program in middle schools.
• $19 million to expand registered apprenticeship and apprenticeship readiness programs while offering training, wages, and credentials to employees.
• $54.8 million to continue Going Pro job training grants to businesses to support training for current and new employees in high-demand, skilled trades industries, resulting in an estimated 35,200 new hires and current employees trained.
In the area of education, the governor proposes increased spending from preschool to postsecondary, including:
• $516 million to support school operations through a 4.1 percent increase in base per-pupil funding — equating to an additional $392 per student, for a total of $10,000 per pupil.
• $202.4 million to continue expanded support for special education students – a 10 percent increase in the state allocation from adjusted current law levels.
• $258 million to support the mental and emotional wellbeing of 1.4 million students through continuation of mental health and safety grants to districts.
• $250 million to implement the Governor’s Students, Metrics and Results with Transparency plan to drive improvements in student outcomes. The SMART Plan would keep parents informed about the standing of their child’s school — increasing engagement with parents.
• $84.4 million to fund a 4 percent ongoing increase for university and community college operations to enhance higher education learning and support Michigan’s goal of 60 percent of working adults earning a degree or skills certificate by 2030.
• $50 million investment in the Postsecondary Scholarship Fund to continue fully phasing in costs of the Michigan Achievement Scholarship, providing a tuition free pathway for full time community college students, and two out of three full-time students at public or private 4-year universities up to $27,500 toward a 4-year degree.
The budget recommendation prioritizes initiatives that benefit and support Michigan seniors, including:
• Continuing to provide tax relief to Michigan seniors through the rollback on the retirement tax, which on average will put $1,000 back into the pockets of 500,000 senior households when fully phased in for tax year 2026.
• $2.7 million to protect nursing home residents, supporting nine new positions to provide more timely and comprehensive oversight of Michigan’s 424 nursing homes and acute and continuing care facilities. This adds to $29 million already appropriated for this critical need.
The governor’s budget proposal focuses on investments to protect and defend Michiganders, including:
• $26 million investment to upgrade critical infrastructure at Selfridge Air National Guard Base in Mount Clemens to build Michigan’s defense industry and attract new flying missions and aircraft, recognizing the $30 billion that it contributes to the state’s economy and the more than 116,000 jobs it supports.
• $46.8 million in opioid settlement funds directed to reduce overdose deaths through prevention, treatment, harm reduction and recovery supports for those affected by the opioid epidemic.
• $42.8 million from taxing vaping and non-tobacco nicotine products similarly to other tobacco products, with all revenues supporting smoking and cancer prevention, and youth mental and physical health, and access to healthcare.
• $75 million for a Public Safety Trust Fund to address violent crime prevention through community interventions, and victim supports.
• $21.3 million to invest in victim support services and offset the loss of federal and state restricted revenue to support services to more than 200,000 victims of crime.
• $5.5 million to protect Michigan’s food supply and help livestock farms prevent disease outbreaks like the bird flu by investing in biosecurity measures.
The budget proposal also calls for investments to make sure state government works efficiently and effectively to serve all residents. They include:
• $46.2 million increase in the Information Technology Investment Fund to upgrade government information technology applications and modernize legacy systems to better serve Michigan residents.
• $25 million in infrastructure improvements and maintenance for nearly 800 building complexes, 5,000 individual structures, and over 41.5 million square feet of state-owned facility space, saving taxpayers from footing the bill for expense repairs due to overdue maintenance.
• $15.2 million for staff and transition funding to operate and relocate to the state’s new psychiatric hospital in Northville Township, which will serve Michigan children and adults, increasing capacity by 54 beds for a total of 264 beds.
The budget recommendation also invests in protecting the state’s air, land and water. Proposals include:
• $80 million to protect clean drinking water, including grants and low-interest loans to local communities to continue replacing lead service lines, installing stormwater management systems, and upgrading their water infrastructure.
• $46 million to reinvest in our state parks – funding maintenance improvements and expanding access to outdoor recreation, ensuring Michiganders can experience Michigan’s state park system, while granting free access to veterans.
• $80 million to clean up contaminated sites, provide grants to local communities for waste management and bring Michigan in line with other Midwest states when it comes to out-of-state trash haulers.
The deadline for the Legislature to adopt the budget is July 1.
“My balanced budget recommendation for fiscal year 2026 doubles down on the kitchen table issues that make a real difference in people’s lives,” Whitmer said in a statement Feb. 5 when the budget proposal was released. “This commonsense budget will lower costs, create good-paying jobs, grow our economy, improve academic results, and support Michigan seniors.”
The budget proposal includes $15.3 billion in the general fund and a school aid budget totaling $21.2 billion.
The governor also proposes a $50 million deposit to the budget stabilization fund, which would bring the rainy-day fund balance to nearly $2.3 billion by the end of fiscal year 2026, an all-time high and double the 2019 balance. Additionally, a $50 million deposit into the rainy-day fund for schools is proposed, which would bring the combined total in reserves to $2.8 billion.
The budget proposal addresses six key areas: lowering costs, creating jobs, education, supporting seniors, protecting and defending Michiganders and making government work better.
In the area of lowering costs, the budget proposal would continue the Working Families Tax Credit, which provided an average of more than $3,500 to 650,000 families last year. It also would set aside $676.1 million to continue providing universal pre-K preschool through the Great Start Readiness Program to an estimated 57,100 children. In addition, it recommends $200 million to continue providing free school meals to all 1.4 million public school students in Michigan, a move Whitmer says would save families $850 per year.
The area of creating jobs includes spending on rebuilding roads and bridges in the state. Whitmer has proposed the following for fixing roads and bridges:
• $4.9 billion in total road funding, including federal, state and restricted funds.
• $112.2 million to ensure Michigan matches all $1.8 billion in federal highway aid.
• $98.9 million to improve state and local roads, highways, and bridges across the state.
• $767 million in total ongoing support for transit and rail programs.
Other line items in the area of job creation include:
• $10 million for Small Business Entrepreneurial Support Hubs to enhance a statewide network of service providers that offer comprehensive resources and critical support to Michigan’s small businesses.
• $10 million to partner with employers to help meet their unique talent needs in industries like advanced mobility, semiconductor, aerospace defense and life science to attract, retain and connect talent with good-paying jobs.
• $125 million to expand CTE programs “Future Ready” pilot program in middle schools.
• $19 million to expand registered apprenticeship and apprenticeship readiness programs while offering training, wages, and credentials to employees.
• $54.8 million to continue Going Pro job training grants to businesses to support training for current and new employees in high-demand, skilled trades industries, resulting in an estimated 35,200 new hires and current employees trained.
In the area of education, the governor proposes increased spending from preschool to postsecondary, including:
• $516 million to support school operations through a 4.1 percent increase in base per-pupil funding — equating to an additional $392 per student, for a total of $10,000 per pupil.
• $202.4 million to continue expanded support for special education students – a 10 percent increase in the state allocation from adjusted current law levels.
• $258 million to support the mental and emotional wellbeing of 1.4 million students through continuation of mental health and safety grants to districts.
• $250 million to implement the Governor’s Students, Metrics and Results with Transparency plan to drive improvements in student outcomes. The SMART Plan would keep parents informed about the standing of their child’s school — increasing engagement with parents.
• $84.4 million to fund a 4 percent ongoing increase for university and community college operations to enhance higher education learning and support Michigan’s goal of 60 percent of working adults earning a degree or skills certificate by 2030.
• $50 million investment in the Postsecondary Scholarship Fund to continue fully phasing in costs of the Michigan Achievement Scholarship, providing a tuition free pathway for full time community college students, and two out of three full-time students at public or private 4-year universities up to $27,500 toward a 4-year degree.
The budget recommendation prioritizes initiatives that benefit and support Michigan seniors, including:
• Continuing to provide tax relief to Michigan seniors through the rollback on the retirement tax, which on average will put $1,000 back into the pockets of 500,000 senior households when fully phased in for tax year 2026.
• $2.7 million to protect nursing home residents, supporting nine new positions to provide more timely and comprehensive oversight of Michigan’s 424 nursing homes and acute and continuing care facilities. This adds to $29 million already appropriated for this critical need.
The governor’s budget proposal focuses on investments to protect and defend Michiganders, including:
• $26 million investment to upgrade critical infrastructure at Selfridge Air National Guard Base in Mount Clemens to build Michigan’s defense industry and attract new flying missions and aircraft, recognizing the $30 billion that it contributes to the state’s economy and the more than 116,000 jobs it supports.
• $46.8 million in opioid settlement funds directed to reduce overdose deaths through prevention, treatment, harm reduction and recovery supports for those affected by the opioid epidemic.
• $42.8 million from taxing vaping and non-tobacco nicotine products similarly to other tobacco products, with all revenues supporting smoking and cancer prevention, and youth mental and physical health, and access to healthcare.
• $75 million for a Public Safety Trust Fund to address violent crime prevention through community interventions, and victim supports.
• $21.3 million to invest in victim support services and offset the loss of federal and state restricted revenue to support services to more than 200,000 victims of crime.
• $5.5 million to protect Michigan’s food supply and help livestock farms prevent disease outbreaks like the bird flu by investing in biosecurity measures.
The budget proposal also calls for investments to make sure state government works efficiently and effectively to serve all residents. They include:
• $46.2 million increase in the Information Technology Investment Fund to upgrade government information technology applications and modernize legacy systems to better serve Michigan residents.
• $25 million in infrastructure improvements and maintenance for nearly 800 building complexes, 5,000 individual structures, and over 41.5 million square feet of state-owned facility space, saving taxpayers from footing the bill for expense repairs due to overdue maintenance.
• $15.2 million for staff and transition funding to operate and relocate to the state’s new psychiatric hospital in Northville Township, which will serve Michigan children and adults, increasing capacity by 54 beds for a total of 264 beds.
The budget recommendation also invests in protecting the state’s air, land and water. Proposals include:
• $80 million to protect clean drinking water, including grants and low-interest loans to local communities to continue replacing lead service lines, installing stormwater management systems, and upgrading their water infrastructure.
• $46 million to reinvest in our state parks – funding maintenance improvements and expanding access to outdoor recreation, ensuring Michiganders can experience Michigan’s state park system, while granting free access to veterans.
• $80 million to clean up contaminated sites, provide grants to local communities for waste management and bring Michigan in line with other Midwest states when it comes to out-of-state trash haulers.
The deadline for the Legislature to adopt the budget is July 1.
Nesbitt: Cut Wasteful Spending In New Budget
Senate Republican Leader Aric Nesbitt, R-Porter Township, released the following statement in response to Gov. Gretchen Whitmer’s fiscal year 2026 budget proposal to the Legislature:
“Over the past two years, Gov. Whitmer and her Democrat trifecta lived fat off of bloated budgets built on the backs of Michigan taxpayers. They blew through a historic $9 billion surplus, imposed a $700 million income tax hike on Michigan workers and raided $670 million from the teacher pension fund — all while ignoring necessary investments in our local roads, critical bridges and struggling schools.
“Meanwhile, President Trump is leading from the front and cutting massive amounts of waste at the federal level. It’s time for Michigan Democrats to heed the mandate issued by voters: No more corporate handouts, no more anonymous pet projects, and no more giveaways to radical far-left causes.
“Michigan’s next budget must roll back the size of government and overspending. It must provide funding to fix our crumbling roads and bridges, keep our communities safe and help students who are falling behind in basic math and reading; and it must reduce the tax burden on hardworking Michiganders who need more of their own money to feed their families and heat their homes. It’s time to prioritize Michigan taxpayers over special interest tax-takers.”
Nesbitt has filed to run for the Republican nomination for governor in 2026.
