Price, Skaggs Introduce Legislation Protecting Michigan From the Federal Government Unlawfully Withholding Federal Funds

LANSING, Mich., June 24, 2026 — This week, state Reps. Natalie Price (D-Berkley) and Phil Skaggs (D-East Grand Rapids) introduced legislation designed to protect Michigan from the federal government unlawfully withholding federal funds owed to the state. The legislation responds to the Trump administration’s move to freeze education grants last summer. The money was partially unfrozen after 24 states sued the federal government, with $2 billion still held by the White House’s Office of Management and Budget.

“The federal government cannot be allowed to sit on funds approved by Congress,” Price said. “Last summer we saw the Trump administration attempt to block disbursement of billions of dollars in already approved money for programs and services people rely on every day, an endeavor the courts deemed was unconstitutional. Especially with an administration this chaotic, we need the tools in place to protect Michigan from a federal administration that is playing fast and loose with the law.”

The package would require the state treasurer to report whether the federal government is delinquent in funds owed to Michigan as well as what payments Michigan owes, including taxes, offsets and grant repayments. The treasurer could then withhold payments to the federal government up to the amount of any unlawfully withheld federal funds.

“We are defending our state from a federal government that does not respect the law nor the will of the people,” Price added. “This doesn’t pave the way for broad decline-to-pay scenarios. It is narrowly targeted to circumstances when courts have already ruled the administration is acting outside the law. When the administration holds billions hostage for political ends, Michigan needs to have recourse, and that’s what this package is designed to do. Our goal is compliance with the law and courts, not escalation.”

“The Trump administration is running roughshod over Michigan, and we have to be able to respond,” Skaggs said. “If the federal government is going to illegally withhold funds from Michigan and actively hurt our residents, then we shouldn’t be required to give taxpayer money to it. This is about protecting Michigan’s sovereignty as a state and ensuring we can stand up for ourselves when the government oversteps its authority.”

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