Updates About Appropriations

Michigan parents, health providers, and advocates came together at the Capitol last week urging legislators to safeguard Medicaid in the face of proposed federal funding cuts. During a Senate Health Policy Committee hearing, members of the Protect MI Care — a coalition of 240+ organizations working to preserve access to health care — shared personal stories illustrating how essential Medicaid has been to their families’ survival and stability. Two mothers from Grand Rapids spoke about how Medicaid coverage made it possible to care for their medically complex children, one born with a serious heart defect necessitating open heart surgery, the other living with cerebral palsy and epilepsy. Both emphasized that Medicaid was not a “handout,” but a vital safety net that filled gaps private insurance did not cover. Coalition leaders and health experts warned that the proposed cuts would threaten access to care across Michigan, particularly in vulnerable and rural communities.

The Michigan Senate Appropriations MiLEAP Subcommittee has proposed a $736.2 million budget for the Department of Lifelong Education, Advancement and Potential, including a $63 million increase to sustain child care services in light of declining federal support. The adjustment aims to maintain access to early childhood programs that have relied heavily on federal funding. Senator Rosemary Bayer (D-West Bloomfield) emphasized that child care is essential to Michigan’s economy and noted that the Senate’s proposal reflects a strategic response to federal funding uncertainty.

In addition to backfilling lost federal dollars, the proposal includes $23 million to boost payments to child care providers—especially those caring for infants and toddlers—as well as $40 million to support advance payments to providers in line with federal regulations. The budget also allocates $16 million for student service grants and calls for the creation of a Dual Enrollment Task Force to strengthen access to higher education.

The Michigan Senate Appropriations Health and Human Services Subcommittee advanced its version of the FY 2026 DHHS budget last week at $39.31 billion, coming in slightly higher than the Governor’s proposed $39.15 billion recommendation. Chair Sylvia Santana’s (D-Detroit) objectives include improving health outcomes for families while protecting essential services and preparing for potential decreases in federal Medicaid support.

Key Senate additions include $58 million for expanding Flint’s Rx Kids program, $13 million for water affordability initiatives, and $10 million for reproductive health access grants. The Senate also proposed smaller increases to Medicaid eligibility than Whitmer’s plan. The budget did not include funding for building a state psychiatric hospital in Northville or for health care services for incarcerated individuals prior to release. It also failed to include several items funded by opioid settlement dollars that were proposed in the Governor’s executive recommendation. However, the Senate added funding in areas such as permanent supportive housing, reproductive health access grants, children’s advocacy centers, non-clinical direct care worker pay, and medical debt relief.