News & Media
Federal and State Lawmakers Work to Pass Budgets, with Differing Results
This week saw attempts to pass both a federal and state budget. The state of Michigan has passed a continuation budget to keep things running for one week, but federal negotiations seem no closer to a final product.
Whitmer Signs Stopgap Budget to Keep State Government Running
Early Wednesday morning, Governor Gretchen Whitmer signed HB 4161, now Public Act 14 of 2025, granting $1.57 billion in temporary spending authority through October 8, 2025; thereby, granting lawmakers additional time to finalize the 2025-26 state budget.
The state’s new fiscal year began the same day, marking the first time in 16 years Michigan’s budget wasn’t completed on time. Governor Whitmer said the continuation measure ensures “uninterrupted services” for residents and keeps state employees working.
Legislative leaders emphasized the eight-day window provides time to finalize and legally review the budget deal already in place. With Yom Kippur beginning Wednesday evening, both chambers recessed until later in the week. Session in both Chambers is scheduled to resume on Friday, October 3rd.
No Continuing Resolution at the Federal Level Means Government Shutdown
Meanwhile, at the federal level, the inability to come to agreement on continuation budget has resulted in a government shutdown which could disrupt several services. Core Medicare and Medicaid operations, CHIP payments, and marketplace eligibility checks will continue, but the Centers for Medicare and Medicaid Services (CMS) will scale back surveys, casework, contractor oversight, and most outreach activities. About half of CMS staff is exempt from furlough, but delays to many programs and beneficiary services are likely. Due to the lack of Congressional action, telehealth services funded by Medicare revert to pre-pandemic rules, limiting some remote care options.
For more details on Medicare operations for claims processing, telehealth, and the status of Medicare Administrative Contractors, please see this article.