Updates About Health Policy

Governor Gretchen Whitmer has introduced a proposal to tax vaping products and nicotine pouches at the same 32% wholesale rate that currently applies to non-cigarette tobacco products like cigars and chewing tobacco. Named in the governor’s executive budget recommendation, her administration argues that this change would close a loophole in state law that allowed these nicotine products to avoid taxation. The executive office estimates the new tax could generate approximately $57 million annually, with funds earmarked for programs focusing on smoking prevention, expanded healthcare access, and adolescent mental health initiatives.

Thirty-two states already tax vaping products in some form, due to studies that link higher tobacco taxes to reduced consumption. With a CDC survey indicating that 14% of Michigan high schoolers have used vapes in the past month, all can agree that action is necessary. However, Whitmer’s proposal is expected to face opposition in the Michigan Legislature, where the House Republican majority has historically resisted new taxes.

Governor Whitmer signed 17 bills into law aimed at expanding healthcare access, supporting workers’ rights, assisting Michigan families, and investing in outdoor recreation. Key initiatives include unionization rights for home care workers, rural healthcare funding, and anti-discrimination protections. Below is a summary of each bill:

• SB 790 and SB 791: Allows 35,000 home help workers in Michigan to unionize, enabling them to negotiate for better wages, benefits, and professional development opportunities.
• SB 701: Expands healthcare access by redefining “rural hospital” to include counties with populations up to 195,000, allowing more hospitals to qualify for funding.
• SB 817: Allocates funds from the Michigan Natural Resources Trust Fund (MNRTF) for 18 land acquisition projects and 35 development projects, supporting outdoor recreation.
• SB 351: Expands anti-discrimination protections for breastfeeding parents, allowing them to pump in public settings.
• SB 150: Permits the Michigan Tax Tribunal’s small claims division to conduct virtual hearings, improving access by reducing travel-related costs and time for participants.
• SB 366: Aligns Michigan’s natural gas safety violation fines with federal standards, increasing accountability for gas providers and enhancing public safety.
• SB 744: Modifies requirements for teachers to complete their probationary employment period successfully.
• SB’s 926, 931, 933, and 934: Increases funding by $4 million per year for Michigan’s gaming and gambling prevention programs, with a focus on youth intervention and responsible gaming.
• SB 928: Removes a clause in Medicaid to ensure full coverage of birth expenses for approximately 66,000 unwed births, reducing costs for single mothers.
• SB 929: Redirects Medicaid funds to broaden access to a range of care centers, increasing healthcare access for low-income Michiganders and supporting healthcare workforce development.
• SB 932: Extends access to cash assistance under the Family Independence Program (FIP) from 48 to 60 months, providing additional support to Michigan families.
• SB 935: Sunsets the Raise the Age Fund, part of a broader initiative to keep minors under 17 in juvenile facilities rather than adult correctional facilities.
• SB 716: Allows owners of historical vehicles to obtain personalized license plates, celebrating Michigan’s automotive heritage.

On September 25, a conference committee approved $125 million in additional funding for school safety and mental health grants in Michigan’s K-12 schools. After cutting $300 million from the FY 2024-25 budget in a move criticized by House Republicans, the legislature has elected to restore $125 million to help schools enhance student safety and support mental health. Another $1 million from the School Aid Fund will be allocated to a student tip line for reporting improperly stored firearms accessible to minors.

The supplemental funding reallocates School Aid Fund dollars considered underutilized by House Democrats to prioritize these initiatives. The House and Senate approved this supplemental funding alongside a bill that permanently reduces the retirement contribution cap for schools.