Preliminary injunction issued in lawsuit over $645M in program cuts by House

A preliminary injunction has been issued by the Michigan Court of Claims, temporarily blocking the state from spending $645 million in funds that were previously canceled by the Republican-led House. The House is suing 31 state departments, arguing that the funds, originally allocated for 'work projects,' were improperly being utilized. Judge Michael F. Gadola ruled that the House would suffer “irreparable harm” if the funds were spent before a final decision is made.

The dispute began when the House Appropriations committee cut approximately $644.9 million in work project funds in December. Attorney General Dana Nessel subsequently ruled the House’s action unconstitutional, prompting the lawsuit. The state argued that much of the money was already 'encumbered,' meaning committed to specific projects, but the House countered that the state’s request for a work project appropriation suggests the funds were not fully allocated.

The injunction currently applies only to unencumbered funds – those not committed by September 15, 2025 – and the court found that the plaintiff demonstrated a “likelihood of success on its claim” that the state’s actions violated the law regarding work projects. House Speaker Matt Hall hailed the ruling as a victory for taxpayers, while the state maintains it was acting within its rights.

(Source：Mlive)