LEO Director Susan Corbin Response to House Republican Budget

LANSING, Mich.—Today, the Michigan Department of Labor and Economic Opportunity (LEO) Director Susan Corbin released the following statement in response to the Michigan House Republicans’ $78.5 billion budget proposal.

“The budget passed by House Republicans deals a devastating blow to Michigan’s employers, working families and vulnerable citizens — hurting Michiganders who deserve the right to earn a good living, have access to the skills they need to succeed in a career, and go to work knowing their rights and safety aren’t in jeopardy.

The House Republican budget would eliminate hundreds of LEO employees and cut approximately $1.13 billion, or 47%, from LEO’s overall budget. These drastic cuts to budget and staffing will create a ripple effect across Michigan’s economy and the programs people depend on. Reductions in resources mean fewer protections and safety nets, fewer jobs, and fewer opportunities for hardworking Michiganders.

The House Republican plan would also prevent LEO from accessing approximately $340 million in federal funding across the department in areas such as unemployment insurance and services for individuals with disabilities, including those who are blind or visually impaired.

In a time of national economic uncertainty brought on by federal tariffs, these cuts would not only cause immediate job losses, but they would also create long-term economic harm for families and businesses across the state. Instead of building a stronger workforce and preparing people for good-paying jobs, these reductions risk pulling Michigan backward — hurting workers, employers and communities alike.”

Estimated impacts from the House-passed budget include:

• Elimination of the Michigan Going PRO Talent Fund, which helps employers assist in training, developing and retaining current and newly hired employees. More than 91% of awards go to small businesses with less than 500 employees. In 2025, the Talent Fund provided 942 businesses with $56.9M in funding to support the training of over 30,000 Michigan workers.
• Termination of LEO’s expansion of Registered Apprenticeship initiatives to accelerate right-skill development for both employers and workers while ensuring maximum safety, quality and return on investment. Approximately 2,000 workers and 150 companies would be affected.
• Loss of $130 million in federal spending authority for the Unemployment Insurance Agency would delay and increase costs for the ongoing modernization efforts to replace outdated systems, reduce fraud, and improve claimant/employer services.
• Drastic reduction in funding for both Michigan Rehabilitation Services and the Bureau of Services for Blind Persons will leave 8,000 individuals with disabilities without the vital services they need to gain employment or independence.
• Severe cuts to MIOSHA would make Michigan workplaces less safe by reducing business trainings and inspections by approximately 40%.
• Noncompliance with numerous state and federal laws across the department.

“Protecting these investments goes far beyond the programs, it’s about making sure our people, businesses and communities have the resources they need to succeed.”