Shutdown‘s Impact on Michigan Deepens as deal Remains elusive
WASHINGTON – As a potential federal government shutdown looms, Michigan faces mounting economic consequences, from declining state revenue to jeopardized assistance programs for vulnerable residents. The White House Council of Economic Advisers estimates Michigan’s gross state product will decrease by $361 million for each additional week the shutdown continues.
the ongoing uncertainty threatens critical services and financial stability across the state. Small businesses seeking loans or permits face delays,federal employee wages are disrupted impacting consumer spending,and funding for vital programs like utility assistance is at risk as winter approaches. These challenges come as federal agencies operate with reduced staff, creating backlogs and pausing grant-funded research.
Michigan is particularly vulnerable regarding the Low Income Home Energy Assistance Program (LIHEAP). US Rep. Hillary Scholten, D-Grand Rapids, warned Monday that the state is projected to exhaust its emergency funds-used to aid 430,000 residents-before the end of November without renewed federal funding.
Beyond financial concerns, the shutdown is already impacting healthcare access. Medicare patients in rural areas utilizing telehealth services have been forced to reschedule appointments as expanded virtual care rules have lapsed. Reduced staffing at federal courts and national parks is also contributing to operational issues and delays.
