August 5th-22nd, 2025

On July 4, 2025, the One Big Beautiful Bill Act of 2025 (OBBBA) was signed into law. As a result, Michigan is facing significant and concerning updates to its Medicaid and SNAP programs that will have wide-reaching effects on residents’ health and access to essential services. These changes are expected to reduce coverage and support for many vulnerable populations.

The Supplemental Nutrition Assistance Program (SNAP) supports over 1.7 million Michigan households, helping prevent food insecurity. Key changes include:

• Low-Income Home Energy Assistance Program (LIHEAP) deduction may reduce SNAP benefits
• Internet Expense Deduction removed
• Work Requirements: Waiver for Able-Bodied Adults Without Dependents (ABAWDs) is being rolled back, requiring more individuals to work or face SNAP loss
• Changes to Immigrant Eligibility: Certain refugees and asylees previously considered eligible may have benefits reduced or terminated
• Enrollment Frequency: Enrollment for SNAP may now occur every six months, instead of annually
• Error Rate-Based Funding Cuts: States will be required to pay a portion of SNAP benefits based on their Payment Error Rate (PER), effective FY28
• Administrative Cost Shift: Federal funding for SNAP administration will decrease from 50% to 25% starting FY27, requiring Michigan to cover 75% of administrative costs

Medicaid currently provides coverage for roughly one in four Michiganders and is a critical lifeline for low-income residents. Major updates include:

• New work requirements for Healthy Michigan Plan (HMP):
  • Applies to enrollees ages 19-64
  • Must work, train, or volunteer at least 80 hours per month to maintain coverage
  • Many exemptions and exceptions
  • Effective January 1, 2027
• Six-month redeterminations instead of renewing eligibility annually
• Retroactive eligibility Limits (previously 90 days prior to application):
  • HMP: Coverage now only 30 days prior to application
  • Other Medicaid programs: Coverage now only 60 days prior to application
  • Effective January 1, 2027
• Fewer coverage pathways for non-citizens
  • Some lawfully present non-citizens may receive Emergency Services Only (ESO) coverage
  • Lawful permanent residents remain eligible
  • No longer eligible: Refugees, asylum grantees, trafficking victims, and more
  • Effective October 1, 2026
• Financing and Provider Changes:
  • Insurance Provider Assessment (IPA) tax to be discontinued
  • Gradual reduction of provider tax cap
  • State Directed Payments (SDP) to providers now capped at Medicare rates (replacing prior commercial-rate cap)

For a full review of the projected impacts of these changes on Michigan residents, see this Medicaid and SNAP Impact presentation by MDHHS shared during a Senate Appropriations committee hearing.

According to the Senate Fiscal Agency’s July 2025 Revenue Report, Michigan’s major taxes and net lottery revenue totaled $2.9 billion in July, down 1.6% from last July and about $130 million short of their May prediction. General Fund revenues came in $125.9 million less than forecasted, while School Aid Fund revenues missed expectations by $15.7 million.

Contributing factors included individual income tax refunds that were larger than originally anticipated, paired with smaller corporate income tax receipts and lower net lottery revenue. Stronger results from real estate transfers, the sales tax increase of 4.5%, and wagering taxes helped, but not enough to offset. So far this fiscal year, General Fund and School Aid Fund revenues remain $53.0 million and $3.6 million below expectations, respectively.

A federal court in northern California has issued a preliminary injunction preventing the U.S. Department of Health and Human Services (DHHS) from providing Medicaid recipients’ personal healthcare information to the Department of Homeland Security (DHS). The ruling comes after a coalition of attorneys general in several states, including Michigan’s Dana Nessel, challenged DHHS’ decision to share this private medical information for immigration enforcement purposes.

The court determined that DHHS and DHS had not done their due diligence through thorough consideration of how to limit the scope of medical information shared before suddenly changing their well-established privacy policy. The court order prevents DHHS from sharing Medicaid data with DHS until after the lawsuit is completed or a comprehensive rulemaking process weighing the legal ramifications has been conducted.

Governor Gretchen Whitmer has signed an executive directive instructing the Department of Insurance and Financial Services (DIFS) to assist Michiganders with navigating upcoming changes to the federal Health Insurance Marketplace. This directive comes in response to a recently passed federal budget bill, which state officials worry could raise premium costs by thousands annually and create new barriers for families trying to maintain their coverage. In Michigan alone, more than 500,000 residents currently rely on Marketplace insurance.

The changes are expected to increase verification requirements for many applicants, particularly for families with incomes at or below 150% of the federal poverty level. Beginning in 2026, the open enrollment period will also be shortened by one month, giving residents less time to secure coverage. Marketplace insurance and Enhanced Premium Tax Credits have historically helped lower costs for working families, providing an average savings of about $700 annually.

Under the directive, DIFS will expand outreach during open enrollment, provide direct assistance through its consumer helpline, and connect residents with Health Insurance Navigators to discuss their options. We’ll continue to monitor how these changes may affect Michiganders. In the meantime, you may read the governor’s full executive directive for more information.

Governor Gretchen Whitmer has made several appointments to state boards and commissions. Here are the highlights on our new and returning appointees:

• Health Information Technology Commission:
  • Jeffrey Chin (reappointed to represent hospitals)
• Early Childhood Investment Corporation Executive Committee:
  • Dr. Steve Tunnicliff (reappointed)
  • Laurie Linscott (reappointed)
  • Anissa Eddie (succeeds Luanne Ewald)
• Michigan Developmental Disabilities Council:
  • Jeremy Murphy (reappointed as a parent or guardian of a child with developmental disabilities)
  • Rodney Craig (appointed as a member representing a state agency that administers funds under the Vocational Rehabilitation Act of 1973)
  • Sarah Winslow (reappointed as a parent or guardian of a child with developmental disabilities)
• Commission on Community Action and Economic Opportunity:
  • Katie Anderson (reappointed as a member representing low-income individuals)
  • Dwan Dandridge (reappointed to represent the private sector)
• Michigan Opioids Task Force:
  • Caitlin Koucky (appointed as a member representing PIHP Region 2)
• School Safety and Mental Health Commission: (submitted by the Senate Majority Leader)
  • Chelsea Kittridge-Farrell (appointed as a member who is a behavioral health professional or behavioral psychologist)
  • Andrea Tobis (appointed as a member who is a teacher)
  • Nicholas Symonette (appointed as a member who is affiliated with a community-based organization working with youths)
• Michigan Board of Nursing:
  • Dr. Larissa Miller (appointed as a registered nurse with a baccalaureate degree engaged in nursing practice or nursing administration)
  • Elizabeth Fluty (reappointed as a registered professional nurse with a master’s degree in a licensed practical nurse program

Korson’s Tree Farms in Montcalm County has been selected to provide an 18-foot blue spruce tree for the White House Blue Room this holiday season. This tree was chosen in part for its sturdy branches that will support the many heavy ornaments typically used in the White House Christmas display. The family-owned farm earned the honor after winning the National Christmas Tree Association contest, a competition they know well. Korson’s Tree Farms has competed several times before and was even selected in 2015 to supply the tree for then-Vice President Joe Biden.

This marks the first time since 1985 that a Michigan tree farm has supplied the official Blue Room Christmas tree.