While Michigan’s lawmakers missed the constitutionally required budget deadline, they approved a week-long continuation budget in the early hours, buying time while a final agreement is hammered out.
Michigan has around 30,000 federal civilian employees working in areas from veterans health care to environmental protection, agriculture, and border operations. In a federal shutdown, nonessential staff may be furloughed without pay, while essential personnel continue working but may have delayed pay until funding resumes.
That loss of income can ripple through local economies. Reduced spending by those households hits retail, restaurants, services, and housing markets.
Core federal benefits like Social Security and SNAP are expected to continue. But programs relying on discretionary funding, such as WIC, could come under strain if the shutdown lasts more than a few days.
Loan programs, including those managed through the SBA and FHA, may pause or slow, affecting small businesses and homebuyers waiting on federal approvals. Passport offices may also reduce services.
Federal contractors in Michigan could see work delayed or payments deferred, a strain on local firms. Meanwhile, agencies such as USDA or EPA might scale back staffing, slowing approvals and research.
Michigan’s congressional delegation is split on who bears responsibility.
Democratic lawmakers
In a statement released Monday evening, Sen. Elissa Slotkin said she voted against the Republican continuing resolution because it excluded Democrats from negotiations: “This temporary funding bill had no input from Democrats, and I’ve said repeatedly, if you want my vote, you have to come talk to me.” She added that any discussion must prioritize health care, warning that President Trump’s “Big, Beautiful Bill” would result in “every single Michigander either losing their health care or paying more than they already have.”
Sen. Gary Peters also issued a statement tying the shutdown to health care costs: “Republicans and President Trump passed their so-called ‘Big Beautiful Bill,’ which will rip health care coverage from hundreds of thousands of Michiganders… No one wants a government shutdown, but health care premiums are estimated to double.” Peters added, “I stand ready to work with my colleagues on both sides of the aisle to reach a bipartisan deal.”
Republican lawmakers
Rep. Lisa McClain, in an X post around 8 p.m. Monday, blamed Democrats for the shutdown: “The Democrats just voted to shut down the government. This will cost our servicemen and women their pay, moms on WIC their benefits, and veterans timely care — all because they have caved to the far-left progressives in their party! It’s shameful.”
Rep. Jack Bergman, in a pre-shutdown statement and posts on X, called it a “Schumer Shutdown” and pushed for withholding congressional pay: “If Congress can’t do its job and fund the government, there’s no reason Members of Congress should keep getting paychecks.”
Shutdowns often last days or weeks, and workers are typically granted back pay once funding is restored. But for households and businesses already on tight margins, the temporary disruptions can still take a toll.
