State management: purchasing; persons engaged in certain boycotts; prohibit a state department or agency from contracting with. Amends sec. 241c of 1984 PA 431 (MCL 18.1241c).

Michigan House Bill 5241, introduced on November 6, 2025, seeks to amend the state's management and budget act to prohibit state departments and agencies from contracting with entities that engage in boycotts against certain industries. Specifically, starting January 1, 2026, the bill would prevent state contracts with companies that boycott businesses involved in conventional energy production, mining, agriculture, timber, or firearms industries. This builds upon existing legislation that already restricts contracts with entities boycotting strategic partners.

Supporters of HB5241 argue that the bill protects key industries vital to Michigan's economy by ensuring that state funds are not used to support entities that discriminate against these sectors. They contend that the legislation promotes economic stability and job security within the state by discouraging politically motivated boycotts that could harm local businesses and workers.

Critics of HB5241 express concerns that the bill may infringe upon free speech rights by penalizing companies for their political stances. They argue that it could limit the state's ability to engage with a diverse range of contractors and may lead to legal challenges over constitutional rights. Additionally, opponents suggest that the bill could deter companies from doing business with the state, potentially increasing costs and reducing competition for state contracts.