This update highlights key developments at both the federal and Michigan state levels, focusing on budget negotiations and policy proposals with significant implications for healthcare, education, and workforce planning.

Federal Happenings

The federal budget bill negotiations are ongoing, which means Medicaid funding and policies remain in imminent danger. However, a slightly less talked-about piece is the proposed constricting of graduate student loans and the wholesale elimination of the Grad PLUS program.

The proposed federal spending bill aims to cap graduate student loans at $150,000 and eliminate the Grad PLUS loan program by 2026. Grad PLUS currently allows students to borrow up to the full cost of attendance and is widely used by graduate and professional students, especially in medicine. Supporters of the change argue the program fuels tuition inflation and drives up federal debt, with graduate loans now making up nearly half of all federal student loan dollars.

Opponents, particularly from the medical and higher education sectors, warn that ending Grad PLUS would limit access to graduate education—especially for disadvantaged and rural students—who may struggle to secure private loans with higher interest rates and stricter terms. Nearly half of U.S. medical students use the program, and it accounts for about 30 percent of all loans in medical education. Many institutions argue that without this federal support, efforts to address physician shortages in underserved areas could be severely undermined. The bill's fate remains uncertain as Senate negotiations continue.

It is essential to contact your Senators and let them know your concerns.

Michigan Legislature

Although committees still met this week and took up policy items, the attention in Lansing is squarely on budget negotiations. House Republicans, largely silent on their budget plans until this week, dropped and moved their School Aid Fund budget bill on Wednesday. Although the plan includes per-pupil funding increases, it eliminates most categorical funding. Up next, presumably, are tense and ongoing discussions between the two Chambers and the Governor. No movement or information has yet been seen on the rest of the budget.

The House Health Policy Committee took testimony on Senate Bill 303, which would re-enter Michigan in the Interstate Medical Licensure Compact. A vote is expected shortly.