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Michigan legislative Republican leaders and Gov. Gretchen Whitmer said Thursday theyd reached an understanding on future pandemic-related orders, signaling a possible end to a stalemate thats complicated budget talks and held up billions of dollars worth of COVID-19 aid.

House Speaker Jason Wentworth, R-Clare, and Senate Majority Leader Mike Shirkey, R-Clarklake, said in separate statements issued late Thursday afternoon that theyd reached an agreement with the governor to work on a plan to include the Legislature in future pandemic-related orders. They also said the governor agreed to end an effort to make COVID-19 workplace rules permanent.

In exchange, Wentworth and Shirkey said Whitmers administration will be looped into ongoing budget negotiations.

Both the House and Senate last week passed initial plans for the budget year that begins Oct. 2, although neither plan was negotiated with the administration. On Friday, financial experts in the House, Senate, and state Department of Treasury are expected to announce a multibillion-dollar increase to previous state revenue projections, and the state still has billions of dollars available in federal funding to allocate from the CARES Act and the American Rescue Act.

Related: Despite pandemic, Michigan projected to see multibillion-dollar budget surplus

Ive consistently said I believe the budget process is better with the governor involved, and the states pandemic management is better with the Legislature involved, Wentworth said. The critical issues facing our state are simply too big and are hurting too many people for us to waste any more time. The people we represent are tired of disagreement and just want results. This agreement is a good first step in getting us to that point.

Whitmer said in a statement the agreement shows how we can unite around investing in our schools, small businesses, and communities to help them thrive.

I look forward to working with the legislature to invest the billions in federal resources sent to us by both the Trump and Biden administrations and pass a budget that makes lasting investments in our shared priorities, she continued.

The Republican-led Legislature and the Whitmer administration have been at odds for months over the states handling of COVID-19, particularly when it came to mask-wearing requirements and restrictions on in-person business or events.

A key factor in the apparent thaw was an agreement from Whitmer to end an effort to make permanent workplace COVID-19 rules, enforced through the Michigan Occupational Safety and Health Administration.

Shirkey called the proposed permanent MIOSHA rules a foolish political game that should have ended the minute the CDC updated its guidelines and said he considered the decision to pull back a good faith gesture that she is willing to work with the Legislature.

A news release from the governors office stated rising vaccination rates, falling case numbers and recent updates from the CDC indicate permanent rules will no longer be necessary. MIOSHA will also remove the requirement that employers create a policy prohibiting in-person work for employees to the extent that their work activities can feasibly be completed remotely and update emergency rules to reflect recent guidance from the CDC and MDHHS.

Related: Michigan to lift outdoor COVID-19 restrictions June 1, indoor capacity limits July 1

The news comes hours after Whitmer announced a new timeline for the state to lift COVID-19 restrictions on businesses by July 1, a shift from her initial plan to lift remaining restrictions on a timeline based on vaccination rates.

Beginning Tuesday, June 1, all outdoor capacity limits will be removed, including at sporting events. Indoor settings, including event spaces, gyms and casinos, will increase capacity from 30% to 50%, while other indoor settings already at 50% will stay there for another month. Then on July 1, all broad restrictions will be lifted.

Michigan pivoted its mask mandate on May 15 to require face coverings indoors for only individuals who arent fully vaccinated, following CDC recommendations that fully vaccinated individuals no longer need to wear a mask indoors in most situations. However, businesses and other venues can still require all staff and visitors to wear masks, and people who arent fully vaccinated are required to wear a mask indoors until July 1.

As of Wednesday, May 19, Michigan had administered nearly 7.9 million doses of the Pfizer, Moderna and Johnson & Johnson vaccines. About 56.8% of the 16 and older population has gotten a first dose, or about 4.6 million residents, and more than 3.7 million residents are fully vaccinated.

COVID-19 cases have declined for five weeks in Michigan, and hospitalizations are down for three weeks. Over the last seven days, the state has averaged 1,435 cases and 55 deaths per day. A month ago, Michigan averaged more than 6,000 cases and 57 deaths per day.

Vaccine appointments, including walk-ins, are available through local health departments, pharmacies and health care providers across the state. For more information, visit the states COVID-19 vaccine website.

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Republican lawmakers agree to negotiate budget, pandemic-related orders with Whitmer - MLive.com