Updates About Budget

The Michigan Department of Health and Human Services (MDHHS) has been directed by the U.S. Department of Agriculture to temporarily pause the issuance of November Supplemental Nutrition Assistance Program (SNAP) benefits due to funding limitations from the ongoing federal shutdown. This nationwide delay affects approximately 42 million SNAP recipients, including roughly 1.4 million Michiganders. State officials warn that even a short-term interruption could significantly impact families that rely on SNAP to purchase groceries and household staples.

SNAP plays a central role in Michigan’s food and economic ecosystem with nearly 13% of households in the state participating in the program. The average individual receiving SNAP stands to lose $173 per month once the pause takes effect. Beyond helping families afford nutritious meals, SNAP dollars circulate back into the more than 9,700 Michigan businesses that accept SNAP, including grocers, farmers markets, and retail workers. MDHHS Director Elizabeth Hertel noted that the delay threatens both family food stability and the broader economic benefits SNAP provides.

With the situation evolving at the federal level, the state has signaled it will continue working to minimize the impact on families. However, until funding is restored, many Michigan households will face renewed uncertainty about how to keep food on the table.

The ongoing Federal Government shutdown is expected to affect many areas in Michiganders lives. Notable impacts include the following:

• Nearly 30,000 civilian federal employees will be either ordered to work without pay or furloughed until Congress reaches a deal. Those ordered to work will receive back pay after the shutdown is over

• All active-duty military personnel, including the National Guard, will carry out their duties without pay

• Short term funding has been made available to both food assistance programs SNAP and Women Infants Children (WIC). Each state has received contingency funds that have estimated to be sufficient for one week of operations, however states may have additional dollars to spend. In Michigan, we are expected to have funds to continue the program for a couple weeks.

• Michiganders on Medicare and Medicaid will continue to receive benefits, but communication delays from the agency are expected

• The Veterans Health Administration, which falls under the Department of Veterans Affairs and is also Michigan’s largest employer, is expected to be 97% operational

• Retirement, disability, veterans, and health care benefits that are covered under federal programs will continue, but delays are expected due to reduced staffing

• The US Postal Service will remain open and mail is expected to arrive on time

• The Michigan Department of Education will also remain open. In a memo, State Superintendent Michael Rice explained that any issues the state needs to elevate to federal officials for guidance will likely be delayed until normal operations resume. He also noted that federal reimbursement-based funding to local schools will be delayed

According to a statement released by Michigan Department of Health and Human Services (MDHHS) Director, Elizabeth Hertel, the meager budget passed by House Republicans would have dire consequences on Michigan residents. Hertel highlighted that the budget’s $4.95 billion reduction in MDHHS funding would lead to significant staff reductions impacting child protective services workers, benefits specialists, disease specialists, and fraud, waste, and abuse investigators.

The director also reported that the budget cuts would curb certain service programs such as removing $20 million in adult dental coverage, $10 million to hospitals for maternal health care, $7 million for the Office of Community Violence and their gun violence reduction efforts, $6.8 million to state psychiatric hospitals, and $4 million toward addressing homelessness.

Hertel stressed that the eliminated funding would negatively impact behavioral health services by increasing wait times and decreasing the state’s patient capacity capabilities. The cuts would also erase Medicaid coverage for approximately 33% of residents in rural communities, placing an extra burden on local hospitals and resources posed with absorbing the costs of their care.