News & Media
House-passed State Budget Bill Major Topic of Discussion
This week, the Michigan House passed a Republican-crafted budget proposal totaling $54.6 billion ($12.09 billion General Fund) for state departments and agencies, part of a broader $79 billion spending plan when combined with schools and higher education. The move came quickly after the plan was first made public, drawing sharp criticism from Democrats who argued the process lacked transparency. The House plan passed 59–45, with one Democrat joining Republicans.
There were large cuts across most departments: Nearly every state department faces reductions, with notable exceptions being the Executive Office, Legislature, Auditor General, Military and Veterans Affairs, and Transportation. The Department of Health and Human Services (DHHS) saw significant cuts:
- Medicaid: $3.7 billion reduction
- Public Health: $92.5 million reduction
- Human Services: $1 billion reduction
Republicans argue eligibility and core services will be preserved, but hospitals warn the changes could devastate healthcare access, especially with federal cuts already looming. The primary care uplift that MSMS has fought for in recent years is included in the House budget, but other cuts are concerning. Republicans defend the proposal as fiscally responsible, focused on cutting “waste, fraud, and abuse,” while Democrats condemn the process as rushed and opaque, saying they had no time to review the 800-page bill before the vote. They warn the cuts, particularly those to DHHS and hospitals, will harm working families and essential services.
Governor Whitmer and Senate Democrats had been waiting for the House GOP plan to begin negotiations. Governor Whitmer, Speaker Hall, and Senate Majority Leader Brinks met Tuesday and signaled talks will continue, but with just over a month until the October 1 fiscal year deadline, pressure is mounting to reach compromise and avoid a shutdown.
The House proposal is smaller than both the Senate-passed budget ($84.6B) and Governor Whitmer’s executive recommendation ($83.5B). With such wide gaps, the next weeks will involve difficult negotiations.