Legislative Update - May/June 2026 Newsletter Edition
Legislative Update - May/June 2026 Newsletter Edition
Michigan Engineering Newsletter
Legislative & Infrastructure Update
Wednesday, May 27, 2026
As Michigan moves toward the heart of the 2026 legislative and budget cycle, the policy environment affecting engineering consulting firms, licensed professional engineers, and the broader infrastructure community continues to shift quickly. State budget negotiations, tax restructuring proposals, infrastructure funding debates, procurement policy, workforce safety, artificial intelligence, drone regulation, dam safety, housing and zoning reform, water quality and PFAS regulation, onsite wastewater policy, energy infrastructure, and federal surface transportation and water infrastructure reauthorization are all converging in ways that could directly affect Michigan's engineering industry.
For members of ACEC/Michigan, MSPE, and the ASCE-Michigan Section, the most significant issues to monitor include the FY2027 state budget, proposed taxation of professional services, Qualifications-Based Selection legislation, transportation funding stability, work zone safety, dam safety reform, housing and zoning policy, energy infrastructure planning, statewide septic system regulation, PFAS legislation at both the state and federal levels, federal surface transportation reauthorization, federal water infrastructure funding reauthorization, the Water Resources Development Act, and efforts to modernize the policy framework around emerging technologies.
The following update provides a comprehensive overview of major state and federal developments impacting Michigan's engineering consulting firms, licensed professional engineers, and the broader infrastructure community.
State of Michigan Legislative Update
FY2027 Budget Negotiations Continue in Lansing
The FY2027 state budget remains one of the most important policy discussions underway in Lansing. The Michigan House has advanced its version of the budget through HB 5619 and other omnibus appropriations bills, approving a spending plan totaling approximately $75.8 billion. The House proposal is substantially lower than Governor Gretchen Whitmer's executive recommendation and reflects a more restrained fiscal approach as lawmakers continue debating revenue assumptions, spending priorities, and long-term structural pressures.
The Senate has advanced its own FY2027 budget proposal through Senate Bill 878, totaling approximately $88.1 billion, approved on a narrow 19–18 vote by the Democratic majority. The plan is slightly larger than Governor Whitmer’s $88 billion executive recommendation and significantly higher than the roughly $75.8 billion House proposal. Notably, the Senate budget does not include the approximately $800 million in new “sin taxes” proposed by the Governor on tobacco, vaping products, and digital advertising to support Medicaid funding, instead relying on existing revenue and internal reallocations to address projected federal funding shortfalls.
The Senate proposal includes a $25 billion education budget and $63 billion in general government spending, with priorities including increased per-pupil K-12 funding (rising from $10,050 to $10,300), a multi-year weighted school funding formula, and modest increases for higher education. The Senate approach also includes targeted investments such as funding for transportation, local government support, and economic development, as well as supplemental spending for major projects like improvements at Selfridge Air National Guard Base.
While the Senate plan reflects stronger investment levels than the House, it also introduces policy debates around revenue assumptions, use of reserve funds, and long-term fiscal sustainability. These differences set the stage for significant negotiations among the House, Senate, and administration as lawmakers work toward a final agreement ahead of the July 1 budget target.
The House plan funds core state government operations, K-12 education, higher education, community colleges, public safety, transportation, and infrastructure priorities. However, it also includes approximately $106 million in overall spending reductions and nearly $600 million in General Fund reductions. Once supplemental appropriations and other adjustments are incorporated, total spending could move closer to $84.8 billion, but the proposal still signals a significant philosophical divide between the House, Senate, and administration.
The budget now moves into negotiations between the Senate, House, and the Governor’s office where spending priorities are expected to differ significantly. Final adoption could extend well beyond the traditional July 1 target date, particularly given ongoing disagreements over revenues, tax policy, infrastructure investment levels, and state spending obligations.
For engineering firms, professional engineers, and civil engineers, the budget process is especially important because it will shape funding for transportation, water infrastructure, state facilities, environmental programs, local government support, and economic development. Delays or reductions in state appropriations can directly affect project timing, owner decision-making, and consultant workloads.
May Consensus Revenue Estimating Conference Shows Stability, but Caution Remains
The May 15 Consensus Revenue Estimating Conference provided an updated picture of Michigan's fiscal outlook. State Treasurer Rachael Eubanks, Senate Fiscal Agency Director Kathryn Summers, and House Fiscal Agency Director Mary Ann Cleary reached consensus on revised economic and revenue estimates for the remainder of FY2026 and for FY2027 and FY2028. The administration described revenues as stable but emphasized continued uncertainty tied to federal policy, economic conditions, and budget discipline.
Combined General Fund + School Aid Fund Estimates
Fiscal Year | January 2026 Estimate | May 2026 Estimate |
FY 2026 | $33.27 billion | $33.58 billion |
FY 2027 | $33.64 billion | $33.82 billion |
FY 2028 | $33.45 billion | $34.62 billion |
General Fund Estimates
Fiscal Year | January 2026 Estimate | May 2026 Estimate |
FY 2026 | $14.13 billion | $14.36 billion |
FY 2027 | $14.07 billion | $14.17 billion |
FY 2028 | $14.48 billion | $14.56 billion |
School Aid Fund Estimates
Fiscal Year | January 2026 Estimate | May 2026 Estimate |
FY 2026 | $19.14 billion | $19.21 billion |
FY 2027 | $19.57 billion | $19.65 billion |
FY 2028 | $19.97 billion | $20.06 billion |
While the May estimates showed improvement over January projections, lawmakers continue to face major budget pressures, including health care costs, operating expenses, potential corporate income tax refund liabilities, and uncertainty regarding federal funding. These pressures will influence final decisions on infrastructure investment, local government programs, and potential tax changes.
House Republican Tax Restructuring Package Passes House, Raising Significant Concerns for Engineering Firms
One of the most consequential state policy proposals for ACEC/Michigan member firms advanced significantly last week when the Michigan House passed the Republican tax restructuring package on a 57-46 vote. The package — dubbed "HELP UP" (Hall Effectively Lowering Property Taxes and Utility Payments) — comprises nine bills, HB 5872 through HB 5880, and would make sweeping changes to Michigan's tax structure, including eliminating the property tax "pop-up" when property changes hands, repealing the six-mill State Education Tax, repealing the real estate transfer tax, and exempting remaining personal property taxes. The House Fiscal Agency estimates the package would reduce School Aid Fund revenues by over $3.1 billion in Fiscal Year 2027 alone, with total cuts estimated at more than $5 billion.
The replacement revenue mechanism — HB 5880 — would create a new excise tax on services and deposit revenue into a Property Tax Savings Reimbursement Fund. Critically, HB 5880 has not yet passed, and the entire package is tie-barred to it, meaning none of the property tax cuts can take effect unless the services tax bill also passes and is signed by Governor Whitmer. Speaker Hall has indicated the specifics of which services would be taxed are intentionally being held back for negotiations with the Governor and Senate Democrats.
As currently discussed, the proposed service tax could apply broadly to professional services, including engineering, architecture, consulting, and other business-to-business services. For Michigan's engineering consulting firms, this raises serious concerns. A tax on professional design services would increase project costs, reduce public and private infrastructure purchasing power, create administrative burdens, and make Michigan less competitive for investment. Engineering services are essential professional services tied directly to public safety, infrastructure delivery, regulatory compliance, and economic development — and taxing them would increase the cost of roads, bridges, water systems, schools, hospitals, and other critical community infrastructure.
The package has drawn significant opposition from local governments and school organizations. The Michigan Municipal League, Michigan Association of School Boards, and Michigan Association of Superintendents and Administrators have all opposed the legislation as written, citing concerns about unsustainable gaps in school and municipal funding. Even one House Republican, Rep. Jaime Greene (R-Richmond), voted against the package, citing insufficient details on revenue replacement. House Democrats have offered an alternative revenue-neutral property tax relief package targeted at working- and middle-class residents, retirees, and renters, which phases in the property tax "pop-up" over three years, expands the Homestead Property Tax Credit, and funds relief through a graduated excise tax on non-primary residences valued above $1 million.
The proposal now moves to the Senate, where it faces an uncertain path under Democratic control, and will ultimately require negotiation with Governor Whitmer. ACEC/Michigan remains strongly opposed to any tax on professional engineering and design services and will continue advocating for the protection of engineering firms and infrastructure owners as this proposal is debated. MSPE and ASCE-Michigan Section members are strongly encouraged to monitor this issue closely and engage with their legislators, as it carries broad implications for the engineering profession, infrastructure investment, and Michigan's economic competitiveness.
Qualifications-Based Selection Remains a Top Legislative Priority
HB 4774 remains one of ACEC/Michigan's highest legislative priorities and is a measure of strong interest to both MSPE and ASCE-Michigan Section members. The bill would amend the Management and Budget Act to modify the state's policies and procedures for selecting architectural, engineering, and land surveying services for state contracts.
The legislation advances the principle of Qualifications-Based Selection, or QBS. Under QBS, public owners select professional design firms based on qualifications, competence, experience, and demonstrated ability before negotiating scope and fee. This process helps ensure that public agencies select the most qualified firm for complex infrastructure and public works projects rather than relying primarily on lowest initial cost.
QBS is a national best practice because it improves project outcomes, enhances public safety, encourages innovation, reduces change orders and disputes, and maximizes long-term value for taxpayers. HB 4774 passed the full Michigan House in December 2025 and has been referred to the Senate Standing Committee on Regulatory Affairs. ACEC/Michigan, MSPE, and ASCE-Michigan Section will continue advocating for Senate action on this critical bill.
Dam Safety Legislation Advances — HB 5485
One of the most significant emerging infrastructure issues before the Michigan Legislature is dam safety. HB 5485, introduced by Rep. Bill Schuette (R-Midland), would substantially modernize Michigan's dam safety regulatory framework. The bill received a public hearing before the House Natural Resources and Tourism Committee in late April 2026, amid active flooding conditions across the state that underscored the urgency of the issue.
In parallel, Senate Bill 947 has been introduced in the Michigan Senate to address dam safety and regulatory oversight, reflecting growing bipartisan interest in strengthening the state's dam safety framework. The Senate bill complements House efforts and will be an important part of broader negotiations on final dam safety policy.
Michigan is home to more than 2,500 dams, many originally constructed in the late 1800s and early 1900s. The Michigan Department of Environment, Great Lakes, and Energy estimates that approximately $1 billion in infrastructure upgrades is needed statewide, even as the state has invested $44.5 million through its Dam Risk Reduction Program since 2021. The 2020 failures of the Edenville and Sanford dams — both declared foreseeable and preventable — highlighted significant gaps in oversight and regulatory authority.
For members of ACEC/Michigan, MSPE, and ASCE-Michigan Section, dam safety legislation represents both a public safety imperative and a significant professional opportunity. Structural assessments, emergency action plan development, hydraulic analysis, inspections, and capital improvement planning for dam infrastructure are all areas where licensed professional engineers play a central and legally required role.
A related measure, HB 4079 and HB 4080, which passed the Michigan House on a strong bipartisan vote and now await Senate action, would expand the definition of special assessment to include dam construction and reconstruction assessments and allow certain dam-related infrastructure assessments to qualify under a deferred payment program for senior citizens and disabled homeowners. These bills were prompted in part by the financial hardships imposed on residents following the 2020 dam failures and are relevant to the broader conversation about how communities fund dam safety improvements.
Work Zone Safety Education Legislation Advances
HB 5767 and HB 5768 would require driver education and licensing applicants to receive instruction on work zone safety. HB 5768 would amend provisions of the Michigan Vehicle Code related to driver license instruction in work zone safety. The legislation would require applicants to complete a work zone safety education course focused on navigating construction areas, understanding safety precautions, and recognizing penalties for traffic violations in work zones. Supporters noted that Michigan experienced approximately 6,000 work zone crashes in 2025, including 24 fatal crashes.
ACEC/Michigan supports this legislation as part of broader efforts to improve safety for workers and engineers in active construction zones.
This legislation is relevant to engineering firms, contractors, MDOT, local road agencies, and public owners because work zone safety remains a major concern on transportation projects. Better driver education could help protect motorists, construction workers, inspectors, engineers, and field staff working in and around active project sites.
Legislation Aims to Close Work Zone Gaps After Road Worker's Tragic Death
A road worker's fatal encounter with a drunk driver has prompted a trio of Michigan House bills that would strengthen protections for workers performing maintenance and debris removal on the state's roads and highways.
Rep. Joey Andrews (D-St. Joseph) presented HB 5702 before the House Judiciary Committee last week, proposing an amendment to Michigan's existing "move over, slow down" law. The bill would broaden the legal definition of a "work zone" to include any road work activity — including hazard and debris removal — and would establish that the presence of a road triangle, flare cone, or strobe light is legally sufficient to designate a work zone.
Under the current statute, a work zone is established by specific markings such as "Road Work Begins" signage or the familiar orange barrels. Workers operating out of a county-issued truck with only a yellow light or a road triangle are not covered under the existing law — a gap the legislation seeks to close. Andrews emphasized that the bills do not create new law but rather clarify and extend existing protections to ensure all road workers are covered, regardless of the scale or formality of the work being performed.
Two companion bills round out the legislative package. HB 5703, introduced by Rep. Phil Green (R-Millington), would make a moving violation causing the death of a road worker a 15-year felony. HB 5704, introduced by Rep. Dave Prestin (R-Cedar River), would establish a uniform standard for safely approaching and passing stationary vehicles, with violations carrying a 90-day misdemeanor penalty.
Committee members Reps. Kelly Breen (D-Novi) and Tyrone Carter (D-Detroit) raised the possibility of including a public education or outreach component alongside the enhanced penalties. Andrews indicated he did not believe additional education was necessary given that the bills clarify existing law rather than introduce new requirements.
William Miller, an Oakland County Commissioner and Operating Engineers trustee, offered strong support for the bills, calling the protections a matter of common sense. Committee Chair Rep. Sarah Lightner (R-Springport) echoed that sentiment, noting that visible work activity — even without traditional signage — should be self-evident to any attentive driver.
The committee took no action on the bills at last week's hearing. Those in the industry are encouraged to monitor the progress of HB 5702, HB 5703, and HB 5704 as they move through committee.
Housing and Zoning Reform Package: Infrastructure Implications for Engineers
A legislative package related to housing supply and zoning reform is generating significant debate in Lansing and has important implications for engineering firms and public owners. The package includes several bills that would modify how communities regulate land use and development, with particular relevance to local infrastructure capacity.
HB 5584 would allow duplexes in single-family residential zones. HB 5529 and HB 5530 would prohibit communities from establishing minimum parcel sizes of more than 1,500 square feet for detached single-family residences served by public water and sewer. Additional bills would allow accessory dwelling units on parcels with single-family homes and streamline the process for protesting zoning changes.
Supporters of the package argue that Michigan's housing supply shortage — with only three months of housing inventory statewide compared to a balanced market's six months — demands state action to remove regulatory barriers to development. Opponents, including many local government officials, argue that existing water, sewer, stormwater, and transportation infrastructure in many communities cannot adequately support significant increases in density without additional capital investment.
For ASCE-Michigan Section members and engineering firms working in the municipal, site development, transportation, and water and wastewater sectors, this debate directly intersects with infrastructure planning and capacity analysis. If the package advances, communities will need comprehensive engineering assessments to evaluate infrastructure adequacy, identify capital needs, and plan for increased service demands. The Government Operations Committee heard from bill sponsors in mid-May 2026 but has not yet voted. The Senate has not yet taken up the package. ACEC/Michigan, MSPE, and ASCE-Michigan Section will continue monitoring this issue closely.
Michigan's First Statewide Septic System Code — SB 771
One of the most consequential water quality and public health bills before the Michigan Legislature this session is SB 771, introduced in January 2026 by Sen. Sam Singh (D-East Lansing). Michigan is currently the only state in the nation without a statewide sanitary code for septic systems, despite widespread evidence that failing and aging systems contribute to bacterial and nutrient contamination in drinking water wells and surface waters across the state.
Approximately 1.3 million septic systems are in use across Michigan. EGLE estimates that at least 20 to 25 percent of those systems are failing or near failing, releasing an estimated 31 million gallons of untreated or partially treated wastewater into state waters each day. Rural communities and those relying on groundwater and private wells face the highest risk of contamination from pathogens including E. coli, salmonella, and hepatitis A.
SB 771 would create a statewide database identifying where septic systems exist throughout the state, establish a technical advisory committee to develop recommended rules for EGLE, require EGLE to adopt statewide standards within three years, and require periodic evaluations of systems based on risk factors including age, proximity to surface water, and changes in use. Systems older than 20 years located within 500 feet of surface water, systems lacking a construction permit, and systems 30 years or older would be prioritized for evaluation in the first ten years of implementation. The bill also creates a new Onsite Wastewater Treatment System Administration Fund to support local health departments, fund record digitization, and assist low-income homeowners with inspection and repair costs.
For ACEC/Michigan member firms and MSPE and ASCE-Michigan Section members working in environmental engineering, municipal engineering, public health infrastructure, and water quality, SB 771 represents a significant potential shift in Michigan's regulatory landscape. If enacted, this legislation would create new engineering assessment, design, inspection, and compliance planning opportunities across the state, particularly for firms serving local health departments, municipalities, and rural communities.
Michigan Water Trust Fund — SB 950 and SB 951
SB 950 and SB 951 would establish a Michigan Water Trust Fund by requiring water bottling companies to pay a 25-cent-per-gallon royalty on water drawn from Michigan sources, generating an estimated $300 million annually for water infrastructure investment. The two bills are linked, meaning both must be enacted for the fund to take effect. Both are currently pending in a Senate committee.
Grant funding under the proposed trust fund would be directed toward a wide range of critical water infrastructure needs, including lead service line replacement, drinking water access for low-income residents, private well testing and remediation, stormwater and flood resilience projects, emergency bottled water assistance, and on-site wastewater systems.
For engineering firms working in water supply, wastewater, stormwater, environmental compliance, and public health infrastructure, a dedicated and sustainable state water trust fund would represent a meaningful new source of project funding and planning activity. The Michigan Infrastructure and Transportation Association has expressed support for the legislation, citing decades of underinvestment in Michigan's underground infrastructure. ACEC/Michigan, MSPE, and ASCE-Michigan Section will monitor SB 950 and SB 951 as they advance through the legislative process.
PFAS Legislative Activity Intensifies at the State Level
PFAS — per- and polyfluoroalkyl substances — continue to be among the most active areas of environmental policy in Michigan, both legislatively and regulatorily. Two distinct tracks of PFAS-related activity are underway simultaneously.
In April 2026, Michigan House Democrats introduced a nine-bill package led by Rep. Penelope Tsernoglou (D-East Lansing) and colleagues aimed at limiting residents' exposure to PFAS and increasing accountability for manufacturers. With more than 300 contaminated sites identified across Michigan and more discovered each year, proponents of the package argue that state action is long overdue. The package includes measures that would help farmers remediate PFAS-contaminated land and receive assistance with medical costs, ban PFAS in cosmetics and personal care products, codify the Citizens Advisory Workgroup representing impacted communities, and allow Michigan residents to sue companies that intentionally add PFAS to their products. The package is currently pending before House leadership.
On the regulatory side, Michigan's existing PFAS maximum contaminant levels in drinking water — among the most stringent in the nation when adopted in 2020 — are now subject to further downward revision. The U.S. EPA finalized a national drinking water standard in 2024 establishing thresholds of 4 parts per trillion for PFOA and PFOS, among other PFAS compounds. Because Michigan has delegated authority from EPA to enforce the Safe Drinking Water Act, state limits must be at least as restrictive as federal limits. EGLE has indicated its intent to adopt updated maximum contaminant levels at or below federal thresholds on or before 2026, with full federal enforceability taking effect in 2029.
For engineering firms working in drinking water treatment, environmental site assessment, remediation, groundwater investigation, water system planning, and infrastructure design, both the legislative package and the pending regulatory update will generate significant new engineering demand across the state. Firms and public owners should be monitoring both tracks closely and planning for capital investment needs associated with updated PFAS standards.
Stormwater Utility Regulatory Clarity Improves
A noteworthy development for municipal and environmental engineers involves the legal standing of stormwater utilities in Michigan. The Michigan Supreme Court recently declined to take up a case challenging the legality of stormwater fee collection by the City of Ann Arbor's stormwater utility, effectively allowing lower court decisions affirming the utility's legality to stand. This decision provides greater assurance to communities across Michigan that stormwater utilities are a legally defensible and durable mechanism for funding the maintenance and improvement of stormwater systems.
For engineering firms engaged in stormwater planning, green infrastructure design, combined sewer overflow management, and utility formation, this development could accelerate the creation of stormwater utilities in communities that have previously hesitated due to legal uncertainty. Increased stormwater utility formation would, in turn, generate more consistent demand for engineering services in stormwater asset management, capital programming, and infrastructure improvement.
Energy Infrastructure Planning — HB 5710 and HB 5711
HB 5710 and HB 5711 would amend Michigan's electric utility integrated resource planning process to require that utilities consider all energy sources when planning for future electric capacity needs. The bills are tie-barred, meaning both must be enacted to take effect. The House Energy, Communications, and Technology Committee reviewed the bills in late April 2026.
For ACEC/Michigan member firms and ASCE-Michigan Section members working in power systems, civil engineering, site development, environmental services, and utility infrastructure, integrated resource planning is an increasingly consequential area of policy. As Michigan's grid faces growing demand from electric vehicles, residential electrification, and large-load industrial users including data centers, utilities and their engineering partners must plan for capital investments across generation, transmission, distribution, and energy storage. Changes to the integrated resource planning framework could affect which generation technologies are pursued, how long-range infrastructure investments are evaluated, and what engineering studies and environmental assessments are required.
Data Centers, Energy Demand, and Infrastructure Convergence
Data center growth and artificial intelligence are reshaping Michigan's energy and infrastructure landscape. As large-load users drive demand for electric generating capacity and transmission upgrades, communities and utilities are confronting complex questions related to grid reliability, water use, land use, transportation access, permitting, and cost allocation.
For engineering consulting firms and civil engineers, data center development generates demand across multiple practice areas, including civil site development, stormwater and environmental permitting, power systems engineering, water and wastewater capacity planning, transportation improvements, and telecommunications infrastructure. At the same time, communities considering large-scale data center development will need careful technical planning and independent engineering analysis to evaluate infrastructure adequacy, manage environmental impacts, and protect existing ratepayers and residents. This issue is actively being addressed at both the state level through the energy planning bills noted above, and at the federal level, where the interaction between data center growth and grid investment is influencing congressional discussions on energy policy.
Artificial Intelligence Oversight Proposal Introduced — HB 5899
HB 5899, discussed in the House Communications and Technology Committee, would create a three-member artificial intelligence governing board, a state pilot program, and a dedicated fund to study and oversee the use of artificial intelligence in Michigan government. The proposed 180-day pilot program would require the Department of Technology, Management and Budget to report on efficiency gains, time savings, and unintended consequences.
For engineering firms, this proposal is worth monitoring because AI is already influencing public-sector operations, procurement, design review, project management, asset management, permitting, and data analysis. A formal state governance framework could shape how agencies deploy AI tools and how vendors interact with state systems. As AI becomes more integrated into infrastructure planning, design, inspection, and operations, ACEC/Michigan, MSPE, and ASCE-Michigan Section will continue monitoring whether new policies support innovation while preserving transparency, accountability, data security, and professional responsibility. MSPE members in particular should be attentive to emerging questions about professional engineer responsibility and the sealing of documents that incorporate AI-generated analysis or design outputs.
Drone Regulation Package Faces Mixed Progress
A bipartisan 15-bill drone regulation package continues to move unevenly through the Michigan House. During a recent House session, only two bills in the package advanced: HB 5329 and HB 5331, both of which would restrict the use of state funds for the purchase of certain drones or drone-related systems.
Drone regulation is directly relevant to engineering firms and civil engineers because uncrewed aerial systems are increasingly used for bridge inspections, survey work, mapping, asset management, construction documentation, emergency response, and environmental monitoring. Any restrictions on public-sector drone procurement or operation could affect project delivery, equipment selection, data collection methods, and consultant-client workflows. The broader package includes provisions related to critical infrastructure security, state procurement, and operational restrictions. ACEC/Michigan, MSPE, and ASCE-Michigan Section will continue tracking the package to ensure that security concerns are balanced with the legitimate use of drone technology for infrastructure inspection and engineering services.
EGLE Battery Recycling Report Highlights Infrastructure and Environmental Opportunities
The Michigan Department of Environment, Great Lakes, and Energy released an analysis identifying opportunities to improve end-of-life battery management in Michigan. The report found that more than 10,000 tons of batteries are entering Michigan's waste stream, in part because recycling access, disposal guidance, drop-off locations, and consistent program funding remain limited. The report identified opportunities to recover valuable materials, strengthen domestic supply chains, reduce environmental and safety risks, expand recycling infrastructure, improve public education, and develop new policy approaches.
For engineering firms, this issue connects to broader trends in solid waste planning, environmental compliance, materials recovery, electric vehicle infrastructure, industrial development, and circular economy systems. As battery use grows across transportation, utilities, consumer products, and industrial applications, communities will need stronger infrastructure to manage collection, recycling, fire risk, and material recovery.
Coordinate System Modernization — HB 5577
HB 5577 remains an important technical policy issue for Michigan's engineering and surveying community. The proposal would support modernization of Michigan's geospatial framework, including updates tied to the State Plane Coordinate System, and would amend 1964 PA 9 and rename it the State Plane Coordinates Act. Accurate geospatial data is essential for engineering design, surveying, construction layout, asset management, transportation planning, utility coordination, emergency response, and infrastructure mapping. Modernizing Michigan's coordinate system would help improve consistency, accuracy, and interoperability across public agencies and private-sector practitioners. This issue is of particular interest to MSPE members engaged in surveying, mapping, and engineering design that relies on precise geospatial standards.
Housing and Redevelopment Bills Advance at Legislature
Both chambers advanced a series of economic development and housing measures last week, with lawmakers focusing on affordable housing production and brownfield redevelopment.
In the Senate, the Housing and Human Services Committee received testimony on SB 966, SB 967, and SB 968, a package sponsored by Sen. Jeff Irwin (D-Ann Arbor) that would create a Michigan Low-Income Housing Tax Credit (LIHTC) program within the Michigan State Housing Development Authority (MSHDA). The proposal would establish up to $100 million annually in state tax credits to supplement the existing federal LIHTC program. Supporters, including MSHDA officials and housing advocates, framed the legislation as a necessary response to Michigan's estimated shortage of 100,000 housing units and an acknowledgment that rising construction costs and higher interest rates have diminished the effectiveness of federal credits alone in financing new affordable development.
On the House side, the Regulatory Reform Committee approved a bipartisan companion package — HB 5805, HB 5806, and HB 5807 — sponsored by Rep. Joseph Aragona (R-Clinton Township) and Rep. Kristian Grant (D-Grand Rapids). This legislation would create a Michigan Housing Opportunity Tax Credit program beginning with a $42 million annual cap in 2027, with set-asides for rural housing, preservation projects, and new construction. By year six, annual program spending is projected to reach approximately $252 million.
The Senate also heard testimony on SB 898 and SB 899, sponsored by Sen. Sam Singh (D-East Lansing), which would update Michigan's Brownfield Redevelopment Program. The legislation would double the maximum project award from $1 million to $2 million, eliminate the current one-project-per-community cap that has limited redevelopment activity in areas with multiple contaminated sites, and establish a new Brownfield Redevelopment Grant and Loan Program administered by EGLE. Proponents described the bills as overdue modernization that would accelerate site cleanup, housing development, and job creation while giving the state more flexibility to respond to time-sensitive economic development opportunities.
HB 5033 Pending in House Regulatory Reform — School Construction Engineer Requirement at Issue
A bill pending before the House Regulatory Reform Committee would significantly reduce the scope of school construction projects required by state law to employ a registered architect or engineer, a proposal that warrants close attention from Michigan's engineering community.
HB 5033, sponsored by Reps. Tim Kelly, Gina Johnsen, Tom Kunse, and Jerry Neyer, would amend the School Construction Code (1937 PA 306) to raise the cost threshold below which school building construction, reconstruction, or remodeling projects are exempt from the professional licensure requirement — from the current $15,000 to $5,000,000. Under existing law, any school building project exceeding $15,000 must retain a registered architect or engineer. Under the proposal, a school district undertaking a project under $5 million would only be required to submit plans to the Bureau of Fire Services and the Superintendent of Public Instruction for review and approval, with no obligation to engage a licensed design professional.
The practical effect of this change would be substantial. The $15,000 threshold was established in 1937 and has not been updated to reflect decades of construction cost inflation but raising it by a factor of more than 300 — to $5 million — would exempt the vast majority of school renovation, reconstruction, and remodeling projects from professional engineering oversight. School facility projects commonly involving structural systems, mechanical and electrical upgrades, accessibility improvements, and life-safety systems would potentially proceed without the review of a licensed engineer.
The bill has been referred to the House Regulatory Reform Committee, where a hearing has not yet been scheduled. Members are encouraged to monitor its progress and consider engaging their legislators ahead of any committee action.
Michigan Supreme Court Considers Constitutional Presentment Dispute
The Michigan Supreme Court recently heard oral arguments in a constitutional dispute involving nine bills passed during the 2023–2024 legislative session but not formally transmitted to Governor Whitmer after control of the Michigan House changed in 2025. The case raises major questions regarding legislative procedure, separation of powers, presentment requirements, and the authority of legislative leadership. While the disputed bills do not all directly involve engineering firms, the case could have long-term implications for legislative procedure, bill enrollment, and the reliability of the lawmaking process.
Michigan Work Projects Settlement Returns $370.8 Million to State Funds
A months-long legal standoff between the Michigan House of Representatives and Gov. Gretchen Whitmer's administration came to a close on Friday, May 22 when the parties filed a settlement in the Michigan Court of Claims, resolving a dispute over approximately $644.9 million in FY25 "work project" spending — funds carried over from prior appropriations for projects not completed within a single fiscal year.
House Republicans, led by Speaker Matt Hall, had invoked a rarely used provision of the Management and Budget Act allowing a single legislative appropriations committee to reject, or "disapprove," executive branch work project designations. The Whitmer administration, backed by an Attorney General Dana Nessel opinion characterizing the one-committee veto as unconstitutional, directed state departments to continue spending the funds, prompting litigation. Under the settlement, the administration's determination that $370.8 million of the total remained unencumbered — not yet spent or contractually obligated — proved decisive: all $370.8 million will now revert to the state funds from which it originally came. The roughly $274 million already committed through executed contracts is unaffected and will continue flowing to intended recipients.
Several programs of direct relevance to Michigan's engineering, infrastructure, energy, and technology sectors are among those affected. The two largest unencumbered balances sit within the Department of Technology, Management and Budget: the Make it in Michigan Competitiveness Fund, which carried approximately $158.8 million unencumbered, and the Enterprisewide Information Technology Investment Projects program, with roughly $26.7 million unencumbered. Within the Michigan Strategic Fund, the Infrastructure Grants program ($63.5 million estimated, $1.6 million unencumbered) and the Michigan Innovation Fund ($11.2 million estimated, $4.2 million unencumbered) also appeared in the settlement detail.
Transportation programs were notably represented, with five MDOT work projects collectively carrying approximately $12.25 million in unencumbered balances. These included Work Zone Safety Cameras ($2.94 million), the School Zone Automated Enforcement Pilot Study ($2.5 million), the 2030 Standard Specifications for Construction update ($2.3 million), Service Initiatives Projects ($3.6 million), and a Passenger Transportation Services Technology Enhancement ($804,000) — all fully or substantially unencumbered, and all now subject to reversion. On the energy and environment side, EGLE's Clean Michigan Initiative Brownfields program ($15 million, fully unencumbered) and LARA's Renewable Energy and EIED Grant program ($5 million, fully unencumbered) — with intended recipients including the University of Michigan, the City of Kalamazoo, and the City of Ypsilanti — will similarly return to their source funds. Several DNR capital and equipment programs, including Wildlife Building Demolitions and Hazardous Material Abatement ($1 million) and Fisheries Major Maintenance and Equipment ($1.6 million), were also fully unencumbered, with the department noting no contracts had been awarded or purchasing processes initiated for any of them.
Republicans characterized the outcome as a significant victory for legislative oversight of executive spending. Democrats maintained the settlement preserved programs where obligations had already been made and avoided a court ruling that could have disrupted billions of dollars in work project spending statewide. The constitutional question surrounding the single-committee veto mechanism was not definitively resolved, leaving it potentially open in future sessions.
For engineers, contractors, local governments, and organizations engaged with state-funded infrastructure, environmental, energy, or technology programs, the practical takeaway is straightforward: agencies and recipients whose funds were already encumbered should see no disruption, while programs where work had not yet begun will need to seek new appropriations. Those with a stake in the affected unencumbered projects should monitor the FY27 budget process closely.
Engineers-Architects-Surveyors Legislative Day Draws Strong Industry Participation at the Capitol
On Thursday, April 30, 2026, engineering, architecture, and surveying professionals gathered at the Michigan State Capitol for AESLC Legislative Day. The event brought together members of ACEC/Michigan, AIA Michigan, MSPE, MSPS to meet directly with lawmakers and advocate for policies that support Michigan’s built environment, public safety, and economic growth.
Participants met with legislators and staff throughout the day to discuss several key industry priorities, including House Bill 4774, which would strengthen Qualifications-Based Selection requirements for state agencies; long-term infrastructure funding; modernization of the State Plane Coordinate System; and the State Historic Preservation Tax Credit legislation.
The day also included policy briefings and educational programming to help participants engage effectively with lawmakers. Legislative Day provided an important opportunity for design professionals to explain how engineering, architecture, and surveying services help communities plan, build, maintain, and modernize critical infrastructure across Michigan.
The strong participation from industry professionals demonstrated the continued importance of coordinated advocacy. By sharing real-world project experience and technical expertise, AESLC members helped reinforce the value of sound procurement practices, sustainable infrastructure investment, and policies that support the professionals responsible for protecting public health, safety, and welfare.
Senate Democrats Restore Full Majority
Democrats regained their full 20–18 majority in the Michigan Senate following the special election victory of Chedrick Greene in the 35th Senate District. Greene replaced former Senator Kristen McDonald Rivet, who resigned after being elected to Congress. The restored majority strengthens Senate Democratic leadership's ability to control committees, shape the budget process, and move policy priorities. This could influence negotiations on transportation funding, tax policy, environmental regulation, energy policy, procurement, and infrastructure investment.
Federal Legislative and Advocacy Update
Surface Transportation Reauthorization Takes Center Stage
At the federal level, the most important issue for engineering firms is surface transportation reauthorization. The Infrastructure Investment and Jobs Act provides the basis for Federal Highway Administration programs and activities through September 30, 2026. A timely, long-term reauthorization would provide MDOT, local agencies, and engineering firms with greater certainty for planning and project delivery. Failure to act on time could create uncertainty, delays, or reliance on short-term extensions.
BUILD America 250 Act Advances Out of House Transportation & Infrastructure Committee
A significant milestone in federal surface transportation reauthorization was reached late last week when the House Transportation and Infrastructure Committee approved the Building Unrivaled Infrastructure and Long-term Development for America's 250th Act — the BUILD America 250 Act — by an overwhelming bipartisan vote of 62-2. The bill now heads to the full House for consideration, with a floor vote anticipated in June following the Memorial Day recess.
The five-year, $580 billion proposal was authored by Committee Chairman Sam Graves and Ranking Member Rick Larsen and would authorize $475 billion from the Highway Trust Fund for highway, transit, and safety programs — roughly a four percent increase over the Infrastructure Investment and Jobs Act (IIJA). ACEC National has indicated the bill meets nearly all of the engineering industry's reauthorization priorities.
For engineering and design firms, several provisions are directly relevant. The bill would authorize FHWA to provide technical assistance, guidance, and best practices on lump sum contracting — a provision specifically requested by ACEC. It would also require FHWA to develop a list of categorical design exceptions from National Highway System standards for certain multimodal projects and features on federal-aid highways, and reauthorizes and updates the Disadvantaged Business Enterprise program with new direction for U.S. DOT to develop objective eligibility criteria.
The markup process produced several notable outcomes for the engineering community. ACEC successfully opposed two amendments that would have threatened private-sector engineering work. One would have required state DOTs to perform cost-comparison studies on any architecture and engineering services contract over $100,000; another would have mandated that only public agency employees perform construction engineering and inspection services. ACEC communicated strong opposition to committee members and staff and engaged directly with the sponsor's office in coordination with ACEC California. The congressman declined to formally offer either amendment during the markup. A third amendment that would have removed federal funding eligibility for digital construction technologies was offered and withdrawn, preserving language in the underlying bill that ACEC supports.
The manager's amendment negotiated by Chairman Graves and Ranking Member Larsen also includes a provision requiring Amtrak to review and assess its architecture and engineering procurement and contracting practices, including modifications to indemnification and standard of care requirements.
On the funding side, the bill includes $375 billion over five years for Federal Highway Administration programs, with $9.2 billion per year dedicated to bridge investment and an additional $2 billion subject to future appropriations. Early estimates from ACEC National suggest every state DOT would see an increase in highway formula apportionments averaging approximately 3.4 percent above FY2026 levels. The bill also provides $87 billion for transit formula programs and $65 billion from the General Fund for Amtrak, CRISI grants, and intercity passenger rail programs. A new Surface Transportation Accelerator Grant program, funded at $2.4 billion annually, would consolidate several discretionary grant programs created under the IIJA.
To address the Highway Trust Fund's long-term revenue challenges, the bill proposes new road-use fees — including annual EV registration fees starting at $130 and plug-in hybrid fees starting at $35 — and reauthorizes the IIJA's national mileage-based user fee pilot program. These would represent the first new federal transportation user fees in more than three decades, though they would not fully resolve the Trust Fund's structural deficit.
Technology provisions in the bill include reauthorization of the SMART grant program and modifications to the Advanced Digital Construction Management System grant program, reflecting growing federal commitment to digital infrastructure delivery.
The American Council of Engineering Companies formally expressed support for the bill in a letter sent to Chairman Graves and Ranking Member Larsen on May 19, citing the bill's alignment with the engineering industry's reauthorization priorities, including maintaining historic investment levels, promoting innovation through appropriate contracting methods, and facilitating efficient project delivery.
For ACEC/Michigan, MSPE, and ASCE-Michigan Section members, the passage of a strong surface transportation reauthorization bill will shape federal infrastructure investment in Michigan for the next five years. All three organizations will continue engaging with ACEC National and Michigan's congressional delegation as the bill moves toward a House floor vote this summer.
ACEC and Transportation Construction Coalition Oppose Federal Gas Tax Holiday
ACEC National joined the Transportation Construction Coalition in opposing proposals to suspend the federal motor fuel tax. ACEC's position is that suspending the gas tax would not meaningfully reduce prices at the pump while undermining the transportation funding system that supports roads, bridges, transit, and freight infrastructure. For Michigan, stable federal transportation revenue is essential, and any policy that weakens the Highway Trust Fund could affect project planning, construction schedules, and long-term infrastructure conditions.
Federal Water Infrastructure Funding Cliff — IIJA Water Authorization Also Expires September 30, 2026
A critical federal issue that deserves equal attention alongside surface transportation reauthorization is the expiration of federal water infrastructure funding authorized through the Infrastructure Investment and Jobs Act. The IIJA allocated $50 billion over five years for water infrastructure — including the Clean Water State Revolving Fund, the Drinking Water State Revolving Fund, targeted lead service line replacement funding, and resources to address PFAS and other emerging contaminants. That authorization expires on the same date as the surface transportation program: September 30, 2026.
Water sector organizations and local government advocates have been pressing Congress to act before the expiration deadline, warning that without reauthorization and continued appropriations, communities could face a significant funding cliff for drinking water, wastewater, and stormwater infrastructure. For Michigan, federal water infrastructure funding has supported lead service line replacement, PFAS remediation, aging system upgrades, and water quality compliance across dozens of communities. Any interruption in that funding stream would directly affect project pipelines and engineering workloads.
ACEC/Michigan, MSPE, and ASCE-Michigan Section will continue advocating for full reauthorization of federal water infrastructure programs, with maintained or increased investment levels, robust funding for lead and PFAS programs, and continued support for small and disadvantaged communities. Members are encouraged to engage Michigan's congressional delegation on this issue alongside the surface transportation reauthorization effort.
Advanced Wastewater Treatment Assistance Act of 2026 — Michigan's Congresswoman Stevens Leads Bipartisan Effort
A directly Michigan-relevant federal bill of significant interest to engineering firms working in water and environmental services is the Advanced Wastewater Treatment Assistance Act of 2026, introduced in March 2026 by Michigan Congresswoman Haley Stevens (D) and Rep. Brian Fitzpatrick (R-PA), co-chairs of the bipartisan Congressional PFAS Task Force.
The legislation would create a five-year, $1 billion federal grant program administered by the U.S. EPA to help water utilities deploy advanced treatment technologies — including granular activated carbon and reverse osmosis — that effectively remove PFAS and other emerging contaminants from wastewater. The program would cover up to 50 percent of eligible project costs, with at least 49 percent of total funding directed to financially disadvantaged communities, which would also have their cost-share requirements waived. Administrative costs for both EPA and participating states would be capped at one percent of program funds. The bill would also direct the National Academies of Sciences, Engineering, and Medicine to conduct an independent study on the effectiveness of advanced treatment technologies in removing PFAS and other emerging contaminants.
According to an EPA study, Michigan alone faces an estimated $181 million in needed wastewater treatment improvements related to emerging contaminants. Rep. Stevens has convened state and local water leaders, EGLE officials, and community stakeholders to build support for the legislation, including a roundtable in Pontiac with Oakland County Water Resources, the Great Lakes Water Authority, and the Great Lakes PFAS Action Network.
For Michigan engineering firms with water and wastewater practices, this legislation could unlock significant federal project funding if enacted, supporting capital planning, treatment system design, construction management, and compliance work at utilities across the state.
Water Resources Development Act of 2026 — Army Corps Projects and Authorities
The Water Resources Development Act of 2026 is a bipartisan bill traditionally passed every two years to authorize U.S. Army Corps of Engineers activities for flood control, navigation, ecosystem restoration, environmental infrastructure, and related water resource projects. The 119th Congress is actively developing WRDA 2026. The Senate Environment and Public Works Committee held a hearing in February 2026 to examine WRDA 2026 and Army Corps programs and priorities. Both the House Transportation and Infrastructure Committee and the Senate EPW Committee solicited project and policy submissions from members of Congress and eligible entities earlier this year.
WRDA 2026 is an important vehicle for authorizing new Army Corps studies and projects, modifying existing project cost-sharing arrangements, expanding environmental infrastructure assistance, and refining policy direction for civil works activities. For Michigan engineering firms working on flood control, inland and coastal waterway management, stormwater, environmental restoration, dam safety, and Army Corps-related projects, the outcome of WRDA 2026 is worth monitoring closely. Communities and engineering firms with pending Army Corps studies, project needs, or policy interests are encouraged to work with Michigan's congressional delegation to ensure Michigan priorities are reflected in any final bill.
Federal PFAS Liability — H.R. 1267, the Water Systems PFAS Liability Protection Act
A federal legislative issue with significant implications for engineering firms serving municipal clients is the ongoing congressional debate over PFAS liability under the federal Superfund law. In 2024, the U.S. EPA designated PFOA and PFOS as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act, which created potential liability exposure for municipalities, counties, water utilities, airports, and other public entities that are passive receivers of PFAS contamination.
H.R. 1267, the Water Systems PFAS Liability Protection Act, would provide a statutory liability exemption for water systems that qualify as passive receivers under CERCLA. Both the House Energy and Commerce Subcommittee on Environment and the Senate Environment and Public Works Committee held hearings on the issue in late 2025, with bipartisan interest expressed in a legislative fix. Lawmakers from both parties have emphasized that any solution should respect the principle that polluters — not ratepayers or taxpayers — should pay for cleanup.
For engineering firms providing environmental and water system services to municipalities, water utilities, airports, landfills, and other public entities across Michigan, unresolved PFAS liability exposure under federal Superfund law remains a significant concern. If public owners are forced to divert ratepayer and taxpayer dollars toward litigation or remediation cost-sharing for contamination they did not cause, those resources may not be available for the infrastructure investment and capital improvements that generate engineering work.
Federal Legislation Aims to Close Dam Safety Gaps Revealed by Edenville Failure
A new bipartisan federal bill introduced by U.S. Representatives Debbie Dingell (D) and John Moolenaar (R) seeks to address the regulatory shortcomings made painfully visible by the 2020 Edenville Dam failure — a disaster that flooded downstream Midland County communities and caused hundreds of millions of dollars in damage.
The legislation would amend the Federal Power Act to require that federally licensed hydropower dams meet safety standards and are maintained in ways that protect the public. It also targets a long-standing gap in how federal and state regulators share information, an issue that has drawn increasing scrutiny in the years since the Edenville failure.
The Edenville Dam lost its federal hydropower license in 2018 after years of unresolved safety concerns yet continued to operate under state oversight until its catastrophic failure in May 2020. Michigan dam safety chief Luke Trumble has acknowledged that the state currently lacks a reliable process for obtaining critical engineering and safety records when federally regulated dams transfer to state jurisdiction. This bill would directly address that gap by requiring the Federal Energy Regulatory Commission (FERC) to notify states when inspections identify safety problems, when repairs remain incomplete after five years, and when license revocation proceedings are initiated. If a federal hydropower license is revoked, surrendered, or abandoned, FERC would also be required to turn over engineering and maintenance records, hazard classifications, repair estimates, hydrologic studies, and dam safety assessments to state regulators.
The bill would further require FERC to assess the financial viability of hydropower license applicants — evaluating whether they can meet long-term safety and maintenance obligations. That provision intersects with ongoing debate in Michigan over Consumers Energy's proposed sale of 13 hydroelectric dams to a private buyer, where critics have argued that regulators should require stronger proof that future owners can afford maintenance, repairs, and potential decommissioning costs. The bill, however, stops short of mandating hard financial assurances such as bonds or escrowed removal funds.
Additionally, FERC would be required to convene a technical conference with states by October 2027 to address dam maintenance practices, climate and hydrologic changes, and decision-making around high-hazard dams.
The federal bill moves in parallel with significant state-level activity. House Bill 5485 proposes a broad overhaul of Michigan's dam safety laws, strengthening oversight, increasing inspection requirements, and requiring owners to demonstrate long-term financial planning. Senate Bill 627, which received a committee hearing on May 21, would require state regulators to evaluate a buyer's financial capacity when reviewing hydropower asset sales.
"Michigan experienced a catastrophic and avoidable infrastructure collapse with the breach of the Edenville and Sanford dams," Dingell said. "This disaster was avoidable, and yet aging dam infrastructure across the state continues to pose a serious threat to safety."
Moolenaar echoed that assessment, stating the bill is intended to address "failures in existing law" exposed by the disaster. "We know in Michigan that the failures of federal bureaucrats, state officials, and a negligent dam owner led to devastating consequences," he said.
With more than 2,500 dams across Michigan — many aging and in need of significant investment — clearer lines of responsibility between FERC and state regulators, and improved access to engineering records during ownership transitions, have direct implications for how engineers assess risk, plan rehabilitations, and advise clients managing dam assets throughout the state.
Engineering Workforce Consortium Expands National Collaboration
The Engineering Workforce Consortium continues to build national momentum around engineering and public works workforce development. The Consortium is a joint effort led by ACEC, the American Public Works Association, and the American Society of Civil Engineers to address workforce shortages across engineering and public infrastructure professions. The Consortium's recent strategic work has focused on early career awareness and recruitment, retention and professional development, credentials and licensing, policy and advocacy, and organizational partnerships.
For ACEC/Michigan, MSPE, and ASCE-Michigan Section members, workforce development remains one of the most urgent long-term issues facing the profession. Licensing pathways, mentorship programs, academic partnerships, and collaboration among national engineering and public works organizations will be critical to expanding the talent pipeline and strengthening career opportunities for Michigan engineers at every stage of their careers.
Federal Permitting Reform Remains a Priority
Permitting reform remains a major federal advocacy priority for ACEC and the broader infrastructure community. Lengthy and unpredictable permitting timelines can delay projects, increase costs, reduce funding efficiency, and make it harder for communities to deliver infrastructure improvements. As Congress works on transportation reauthorization, water infrastructure reauthorization, and broader infrastructure policy, ACEC continues advocating for reforms that preserve environmental protections while improving coordination, accountability, and timeliness.
Federal Contracting and Procurement Issues
ACEC continues to monitor federal contracting policy, including issues involving the U.S. Army Corps of Engineers, NAVFAC, and other federal agencies. Key industry priorities include fair procurement practices, appropriate risk allocation, timely payment, professional liability protections, realistic project schedules, and recognition of the value of qualifications-based selection across all federal infrastructure programs.
Michigan Delegation Meets with Congressional Offices During ACEC Annual Convention and Legislative Summit
As part of the 2026 ACEC Annual Convention and Legislative Summit in Washington, D.C., ACEC/Michigan members participated in Capitol Hill meetings on Tuesday, May 5, 2026, to advocate for federal policies that support Michigan’s engineering industry, infrastructure investment, and long-term economic competitiveness.
Although both the U.S. House and Senate were in recess that week, ACEC/Michigan delegates met with congressional staff representing key members of Michigan’s delegation, including offices of members serving on the House Transportation and Infrastructure Committee. The delegation focused its advocacy on three major federal priorities: surface transportation reauthorization, water infrastructure investment, and permitting reform.
With the Infrastructure Investment and Jobs Act approaching expiration, ACEC/Michigan emphasized the need for Congress to maintain a strong, long-term federal commitment to infrastructure. Delegates highlighted the importance of predictable transportation funding, continued investment in water and wastewater systems, and policies that help project delivery move more efficiently from planning to construction.
ACEC/Michigan also reinforced the importance of preserving Qualifications-Based Selection for federally funded engineering services and reducing unnecessary administrative barriers for local governments and public agencies pursuing federal infrastructure grants. These reforms are essential to ensuring that public owners can select the most qualified professional engineering firms while delivering projects efficiently and responsibly.
The meetings also provided an opportunity to discuss broader business and workforce priorities impacting consulting engineering firms, including tax policies that support firm growth, research and innovation, and the recruitment and retention of highly skilled technical professionals. ACEC/Michigan appreciates the time and engagement of Michigan’s congressional offices and will continue working with ACEC National to advance policies that strengthen the engineering profession and Michigan’s infrastructure future.
ACEC Political Engagement and PAC Activity
ACEC/PAC and state-level political engagement remain important tools for supporting candidates and policymakers who understand the engineering industry, infrastructure investment, and sound procurement policy. ACEC/PAC raised more than $133,506 during April and continues supporting national advocacy efforts. For ACEC/Michigan, political engagement remains central to advancing priorities including QBS, infrastructure funding, tax policy, workforce development, and protection of the professional engineering business environment.
Looking Ahead
The coming months will be pivotal for Michigan's engineering community at every level. At the state level, ACEC/Michigan, MSPE, and ASCE-Michigan Section will continue monitoring budget negotiations, the proposed service tax, QBS legislation, dam safety reform, housing and zoning policy, the statewide septic code, the Michigan Water Trust Fund, PFAS legislative and regulatory developments, stormwater utility policy, work zone safety, drone regulation, AI governance, coordinate system modernization, energy infrastructure planning, and transportation funding.
At the federal level, surface transportation reauthorization and water infrastructure reauthorization will share equal urgency as twin September 30, 2026 deadlines approach. Congress must act on both fronts to avoid funding uncertainty for state DOTs, local agencies, water utilities, and engineering firms. The Advanced Wastewater Treatment Assistance Act, WRDA 2026, and the federal PFAS liability debate round out a full federal agenda that will require sustained engagement from Michigan's engineering community through the remainder of the year.
ACEC/Michigan, MSPE, and ASCE-Michigan Section will continue engaging with lawmakers, agency partners, ACEC National, coalition partners, and members to advocate for policies that strengthen Michigan's infrastructure, protect the engineering profession, support long-term economic competitiveness, and ensure public owners have access to the most qualified engineering expertise available.
This legislative update is provided for informational purposes and is prepared on behalf of ACEC/Michigan, the Michigan Society of Professional Engineers (MSPE), and the ASCE-Michigan Section. Member firms and individual engineers with questions about specific legislative matters are encouraged to contact their respective organizations directly.
Note on bill links: Michigan Legislature links follow the standard URL format at legislature.mi.gov. Federal bill links direct to Congress.gov. If any link does not resolve directly, bill text can be located by searching the bill number at either platform. The BUILD America 250 Act was released on May 17, 2026, as a discussion draft and had not yet been assigned a formal bill number at the time of publication; it is linked to the official House Transportation and Infrastructure Committee bill text.