Budget & Taxes

House Bill 4342 amends Michigan's state revenue sharing act, introducing a new condition for withholding state funds from local governments. Beginning October 1, 2025, the state treasurer would withhold all revenue sharing payments from any city, village, township, or county. This would occur if the local government enacts or enforces a law, ordinance, policy, or rule that violates the "local government sanctuary policy prohibition act" or the "county law enforcement protection act." Payments would be withheld for as long as the violating policy remains in effect. This bill is tied to the enactment of House Bills 4338 and 4339.