McCall Hamilton Advocacy and Public Affairs

Updates About Budget

Upcoming Changes to Michigan Medicaid and SNAP Programs

Update: Aug 5-22, 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.

Whitmer and Gilchrist Fight to Protect Medicaid and Medicare on its 60th Anniversary

Update: Jul 29-Aug 4, 2025

As Medicare and Medicaid reach their 60th anniversary, Governor Gretchen Whitmer and Lieutenant Governor Garlin Gilchrist are celebrating the sweeping impact the programs have had on Michiganders while also raising alarm over recent federal threats to their future. These landmark health care programs now cover more than one in four state residents, providing essential care for children, seniors, people with disabilities, and low-income families. Whitmer credited Medicaid and Medicare with reducing poverty, supporting rural hospitals, and keeping costs down for working families.

At the same time, Whitmer and Gilchrist sharply criticized recently passed federal legislation that cuts nearly $1 trillion in Medicaid funding, which would eliminate health care for many here in Michigan. With nearly 2.6 million Michiganders relying on these programs, including 1 million children and three in five nursing home residents, Whitmer and Gilchrist have pledged to keep fighting for access to affordable care, even as Congress moves in the opposite direction.

AG Joins Multistate Lawsuit Over Federal Freeze on $6.8B in Education Grants

Update: Jul 8-28, 2025

Attorney General Dana Nessel has joined 21 other states in a legal challenge against the Trump Administration over its abrupt freeze of $6.8 billion in federal education funds. The lawsuit argues the freeze violates federal laws and constitutional provisions by halting already-approved funding for six key programs that support students with the greatest needs—such as English learners, migratory children, and adult learners. In Michigan alone, approximately $171 million is at stake, funding programs overseen by the Departments of Education (MDE), Lifelong Education (MiLEAP), and Labor and Economic Opportunity (LEO). These programs help support summer learning, teacher training, community enrichment, and adult education—many of which are already being disrupted.

Nessel and state education leaders are calling the move both illegal and harmful. Local schools had already made hiring decisions, signed contracts, and planned programming based on funds Congress appropriated and the Department of Education previously approved. Without intervention, school districts and adult education providers will be forced to scale back or cancel vital services just weeks before the school year begins. The lawsuit seeks immediate court action to restore the funding and prevent further disruption to educational programs that serve vulnerable student populations.