State management: funds; withholding of payments to the federal government; provide for. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding sec. 143. TIE BAR WITH: HB 6122’26
Key claim: HB6123 would amend Michigan’s Management and Budget Act to authorize the state to withhold payments to the federal government, tied to HB6122.
Abstract
(HB6123 · 103rd Legislature) State management: funds; withholding of payments to the federal government; provide for. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding sec. 143. TIE BAR WITH: HB 6122’26 Latest action (2026-06-24): Bill Electronically Reproduced 06/23/2026
Why this matters
The proposal would insert a novel fiscal lever into Michigan’s core budget statute, letting the state pause or withhold money it otherwise owes Washington. For taxpayers and state agencies, this could reshape cash flow, federal grant compliance risk, and the balance of leverage in state-federal disputes. As introduced legislation tie-barred to a companion bill, its practical scope depends on HB6122’s substantive terms.