January 1st-23rd, 2026

The Michigan Department of Health and Human Services (MDHHS) is looking for members to serve on the Rural Health Transformation (RHT) Advisory Council. Those selected will support the implementation of Michigan’s RHT program.

The Rural Health Transformation Program stems from a grant established by the Centers for Medicare and Medicaid Services (CMS) under the federal One Big Beautiful Bill Act (OBBBA) passed into law this year. The grant program is a five-year initiative that will allocate up to $10 billion to states each year from 2026 to 2030. This year, all 50 states received funding for FY 2026, with Michigan set to receive $173.1 million.

MDHHS will be awarding the funds to organizations in the state that prioritize expanding access, quality, costs, and technology advancements of healthcare for rural Michigan residents.

The advisory council will have the responsibility of creating a strategy to strengthen the input of partners and communities throughout the implementation of the program. The council will also offer guidance to MDHHS on decision making and ensure the program remains committed to rural areas.

Individuals and organizations with experience and commitment to improving rural health are encouraged to apply for a seat on the council. Other criteria include knowledge of rural health challenges or service delivery gaps, dedication to problem-solving, and availability to participate and contribute to the program’s scheduled meetings.

Interested applicants can apply here. To receive updates on program developments, you may also subscribe to the RHT Listserv. Applications are due end of day 1/23.

Shortly after the new year, Michigan Attorney General Dana Nessel issued her formal opinion that the mechanism used by the Michigan House Appropriations Committee to eliminate over $644 million in work project funding is unconstitutional. The disapproval mechanism used, MCL.18.1451a(3), can be found in the Management and Budget Act and allows for previously approved funding from the last fiscal year to continue to be used for its direct purpose in the new fiscal year. The funds are approved by the State Budget Director and are known as work projects. According to the law, either the Senate or House Appropriations Committee can then decide to approve or disapprove the work project funding. Historically in Michigan this funding has typically been approved by both chambers.

In her opinion, AG Nessel deemed MCL.18.1451a(3) unconstitutional. She argues that the mechanism violates Separation of Powers because it allows a single legislative committee to effectively have authority over the executive’s law implementation powers. Continuing her argument, she laid out that since the action was not approved by the Senate, and subsequently by the Governor, it violates the Bicameralism and Presentment requirements. Lastly, Nessel concluded that the veto disapproval mechanism is separate from the rest of the statute, so the remaining portions, such as the State Budget Director’s authority, can remain.

Two weeks after the Attorney General’s formal opinion was published, Court of Claims Judge Michael Gadola issued a preliminary injunction that preserves the status quo of the law. This injunction temporarily prohibits state departments from spending any remaining work project funds until the courts have made a final decision on the constitutionality of the House Republican Appropriations Committee’s actions.

Last week, House Majority Floor Leader Byran Posthumus (R-Rockford) unexpectedly announced that he will not be seeking reelection to keep his seat in the next cycle.

In his statement, he wrote that he only planned to serve three terms after deciding to run in 2020. Posthumus was elected by his colleagues twice to serve as the House Floor Leader in his last two terms. By announcing his decision now, he hopes this will give sufficient time for a quality candidate to run in 2026.

Like Posthumus, his successor will represent the 90th House District. This northern Kent County district also encompasses the city of Rockford and the townships of Algoma, Alpine, Cannon, Courtland, Grattan, Plainfield, Sparta, Tyrone, and Vergennes.

Posthumus described his time in office as a privilege, saying it was an honor to serve both Kent County and the people of Michigan. He praised colleagues from both parties for what they were able to accomplish during his tenure. He also emphasized that despite their differences, both sides share a common goal of helping Michigan and its residents.

Lieutenant Governor Garlin Gilchrist II announced recently that he is dropping out from the Gubernatorial race where he has been campaigning for the spot as Michigan’s next Democratic Governor, alongside frontrunner and current Secretary of State Jocelyn Benson and Genesee County Sheriff Chris Swanson.

After bowing out of the race for Governor, Gilchrist announced that he is now seeking his party’s nomination for Secretary of State. His new opponents, Ingham County Clerk Barb Byrum and former Michigan Lottery Commissioner Suzanna Shkreli, both criticized his decision in statements made on social media. Deputy Secretary of State Aghogho Edevbie responded by exiting the race and has since endorsed Gilchrist, urging party unity while also admitting that Gilchrist’s entry shrunk his own path to victory.

The Senate Fiscal Agency recently released the monthly revenue report for December 2025. The report detailed that tax collections were $2.9 billion, $328.6 million below the expected number and 6.5% lower than December 2024.

Corporate Income Tax (CIT) collections came in $48.3 million higher than predicted, and net income tax revenue was also $13.8 million above expectations. Despite these higher amounts, lower revenue from Individual Income Tax (IIT) withholding and sales taxes, along with higher Michigan Business Tax (MBT) refunds, significantly outweighed the gains from the CIT and income tax. The largest contributor to the lower overall total was MBT collections, as refunds far outpaced payments, resulting in collections of $394.2 million compared to a projected negative $70.0 million. It’s important to note that MBT refunds are usually processed in large groups and typically get processed in January; however, this Fiscal Year they were processed in December, contributing to the large difference between projected and actual refund amounts.

So far, the year-to-date actual revenue compared to predicted for both the General Fund (GF) and School Aid Fund are down. The GF is below expectations by $178.1 million whereas the School Aid Fund is down by $13.0 million.