Updates About Budget

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.

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.

The Michigan Department of Health and Human Services (MDHHS) is seeking applications for its Civil Monetary Penalty Reinvestment Program, which funds projects aimed at enhancing the quality of life for nursing home residents. Eligible organizations, including hospitals, academic institutions, nursing facilities, and nonprofit groups, can apply for grants to support innovative programs that go beyond standard care requirements. A total of $5 million is available for projects running from October 1, 2025, to September 30, 2026.

Interested applicants must register for the EGrAMS system and request an application by May 16 at 5 pm, with completed applications due by May 22 at 3 pm. MDHHS will also host a pre-application conference on April 8 at 1:30 pm to provide guidance on the grant process. For more information or to apply, visit the EGrAMS Health and Aging Services Administration website.