Updates About Appropriations

The Michigan Senate Appropriations Health and Human Services Subcommittee advanced its version of the FY 2026 DHHS budget last week, totaling $39.31 billion ($7.27 billion General Fund), slightly higher than the Governor’s proposed $39.15 billion ($7.37 billion General Fund). The plan reflects efforts to improve health outcomes for families while preparing for potential cuts in federal Medicaid funding. The Subcommittee Chair, Sen. Sylvia Santana (D-Detroit), said the Senate proposal focuses on protecting essential services and providing flexibility if federal support declines.

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 the governor. 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, and scaled back funding recommended by the Governor for new opioid initiatives. However, the Senate added funding in areas such as permanent supportive housing, reproductive health access grants, children’s advocacy centers, direct care worker pay, and medical debt relief.

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.

Senator Kevin Hertel (D-St. Clair Shores) has proposed a $1 million allocation for a new “Statewide Fentanyl Enforcement” initiative in the Michigan State Police budget for Fiscal Year 2026. The funding would bolster the department’s existing task force operations, which collaborate with other agencies to identify and prosecute fentanyl traffickers across the state. Hertel noted the investment is a direct response to the increasing impact of fentanyl in Michigan communities.

As the Senate Appropriations Military, Veterans and State Police Subcommittee Chair, Hertel believes the appropriation would provide resources to help MSP and its partners identify fentanyl sources, disrupt distribution networks, and hold traffickers accountable. The subcommittee approved the broader FY 2026 State Police budget, which includes this allocation, on a 2-0 vote.