Founded on the work carried out in this two-year project, these three partners proposed to the Michigan Health Endowment Fund a broader effort, leveraging primary research and broadened coalition building to address the deep and prolonged social work workforce gap.

The Michigan Health Endowment Fund recently announced that this proposal was one of a number of proposals to be funded by the Health Fund through its Special Projects & Emerging Ideas Initiative (SPEI). This project was also one of a number of those selected for funding by the Health Fund centered around workforce strengthening efforts. These three partner organizations will be kicking off this work later this year. The full list of fund proposals can be found here.

Sen. Michael WEBBER (R-Rochester Hills), who requested the review, told the panel that the state’s inpatient psychiatric care network “is broken,” citing years of reports from parents, patients and whistleblowers.

“The more we learn, the worse it gets,” Webber said. He accused the Department of Health and Human Services (DHHS) of neglecting its responsibility to safeguard vulnerable children and adults and of briefly deleting two years of complaint data from its public website after the Office of Auditor General’s (OAG) report was released.

The audit found that more than 30% of serious complaints alleging abuse, neglect, injury or death were not investigated on time, and that surveillance footage that could confirm or disprove allegations was often missing or inoperable. In some hospitals, complaint drop boxes were checked only a few times per week, delaying investigations that the law requires to begin immediately for severe allegations.

A team from the Auditor General’s Office told lawmakers their review uncovered eight findings — four of them “material conditions,” the most severe rating under government audit standards. Those included delays in collecting and investigating complaints, missing evidence, inadequate monitoring of video systems and appeals and weak documentation for annual reviews of local rights systems that handle most complaints statewide.

Four lesser “reportable conditions” involved poor communication with patients about their rights, late employee training, a lack of training for the rights-appeals committee and weak security controls in the state’s complaint-tracking database. Auditors said DHHS agreed with five findings and disputed three.

Committee Chair Jay DEBOYER (R-Clay) called the audit “a two-pronged failure” — both in patient care and in oversight.

Auditors told lawmakers that DHHS has 30 days to file a corrective-action plan with the State Budget Office but that none had yet been finalized. Rep. Denise MENTZER (D-Mount Clemens) called the delay “incredibly disappointing,” noting the same deficiencies were documented in a 2014 audit.

Members from both parties seemed to agree the findings demand reform. “This isn’t about politics,” DeBoyer said. “It’s about protecting kids and vulnerable adults who can’t protect themselves.”

Under the state’s Mental Health codes, those who believe their rights have been violated while receiving behavioral health services have a right to issue a complaint.

DHHS officials were not able to provide testimony at today’s House Oversight Committee.

DHHS spokesperson Lynn SUTFIN said Office of Recipient Rights (ORR) staff received and resolved nearly 5,000 complaints from the state psychiatric hospitals over the three-year audit period. These are complicated investigations involving individuals dealing with complex mental health conditions, she said.

DHHS has already made substantial process improvements to matters identified in the audit report, including improved record keeping and timeliness of reports; hiring additional staff to coordinate the appeals process; and updated ORR training processes and oversight for all DHHS staff, Sutfin said.

“While this work is often challenging, MDHHS is dedicated to delivering behavioral health care to patients with the most complex health needs,” she said. “Advancements including the new state hospital under construction and innovative programming such as the new assessment tool to reduce incidents of aggression and injury, are resulting in both better patient care and staff retention.”

Sutfin added that the Michigan Department of Health and Human Services (MDHHS) is committed to ensuring Michigan residents seeking behavioral health services can exercise their rights under the Michigan Mental Health Code and that individuals who believe their rights have been violated have their rights complaints addressed.

In committee testimony last month, Wendzel said parents with children who rely on certain therapies to help their child at school struggle to coordinate the treatment for their school day since policies between school districts vary and can be inconsistent and bureaucratic, Wendzel said.

Every school would have to adopt a transparent policy so that a student can receive treatment ordered by a health care provider and make sure that parents know their rights under federal laws and the Americans with Disabilities Act.

The policy would have to be provided to parents, outline how health care providers could observe a student, collaborate with school personnel and provide treatment during school, and require that a parent who requests their student receive care during school that the school district respond within 30 days. A treatment plan would have to be accepted unless it imposed an undue burden on the school according to federal law.

In the committee, Berrien RESA Superintendent Eric HOPPSTOCK, testified in opposition of the bill. He said he fully supports educationally based practices, but there is worry that the services will conflict with the Individuals with Disabilities Education Act (IDEA) that they are required to abide by.

He took issue with the fact that accommodations would only have to be prescribed from a medical provider in order to be allowed, not just applying to ABA for autism.

“It is any medically necessary service, so the gate is wide open,” Hoppstock said.

Under IDEA, Hoppstock said there are prescriptive procedures for looking at data and how decisions are made based on that data, which is supposed to be done collaboratively. He said the bill would potentially add a way to get around that process.

Flood asked the money be used to buy food for local food banks and pantries throughout the state, with the lion’s share going to areas of greatest need as determined by the Food Bank Council of Michigan.

Gov. Gretchen WHITMER said the money will help all 83 counties and provide food delivery to those that can’t drive to a food bank.

“Hungry families cannot wait for the folks in power in Washington, DC to do their jobs,” Whitmer said in a statement. Lt. Gov. Garlin GILCHRIST II, Speaker Matt HALL (R-Richland Township), Flood and Hertel were also quoted in the statement, but Senate Majority Leader Winnie BRINKS (D-Grand Rapids) was not.

Rep. John ROTH (R-Interlochen), who chairs the House Appropriations Subcommittee on Human Services, said even though SNAP costs about $300 million to fund per month in Michigan, the food banks said the $4.5 million would be enough for them to operate for two weeks. 

From there, the situation will be reassessed week-by-week until the federal government gets back to action.

“We’re not saying we’re covering every SNAP benefit in the state of Michigan. What we’re saying is that the food banks say this would cover them for two weeks with the need that’s out there,” Roth said. “So, it’s not a done thing, but we wouldn’t want to spend six (hundred) or $900 million right up front if the government goes back to work – the federal government – next week.”

MI Senate Wants $71M SNAP Supplemental Instead

Last week, the Senate passed a measure spending $71 million on food assistance. Of the $71 million, $50 million was sent toward food purchases for poor households with the “greatest level of need.” DHHS is asked to use existing relationships with “electronic benefit transfer” – or EBIT card – vendors in dispersing money. 

Additionally, $20 million will be split between emergency food bank grants and the “Michigan agricultural surplus system” to support food bank inventories. 

Brinks clarified to the press that the $71 million would come from Michigan’s General Fund revenues, instead of its emergency “rainy day fund.” 

“If we’re going with a storm analogy, it might be raining now, but I think we’re headed for earthquakes and tornadoes . . . with this administration if it continues to go as it has been,” Brinks said. 

The federal government spends roughly $3.9 billion annually in Michigan on SNAP benefits, breaking down to $325 million monthly – meaning it would cost $81 million weekly to fund SNAP.

In Fiscal Year (FY) 2024, the average SNAP household in the state received $335.03 in benefits per month, which is about $173 per person monthly or $5.68 per person a day. Households with very low incomes receive larger SNAP benefits than households closer to the poverty line because they need more help affording nutritious food, according to the DHHS. 

House Speaker Matt Hall called the Senate’s supplemental a “political bill”, due to the five-day rule and the fact that the Senate isn’t planning to meet next week.

“What I’m trying to explain to you guys is this: this resolution, this bill by the Democrats is performative. It’s fake, OK? And the real solution is what Governor Whitmer, and the House Republicans are working on together,” Hall said. “We don’t have the resources as a state to pay for these federal programs. So, what we can do is empower the Food Bank Council, and we can give them the resources to meet this demand for the next two weeks.” 

Hall said the state doesn’t have the resources to back-fill SNAP, Women, Infants & Children (WIC), and any other federal program that has a looming funding cutoff. 

“But you can’t equate this – a real solution, a bipartisan solution that Governor Whitmer and I have come up with – with a fake (solution) that couldn’t be acted on with a group of people that are not even going to be here next week,” Hall said. 

Hall said if the Senate really wanted to figure out a solution, they would have called him, and they didn’t, and they didn’t call Whitmer to the best of his knowledge either. He also said U.S. Senators need to step up and work out their political differences.

“There’s a time for disagreements in politics. It’s not right now when people are about to lose their ability to feed their families. It isn’t right now. Right now, is the time to come together,” Hall said. “It’s a pretty bad day to be a Senate Democrat,” Hall said.

“We feel fortunate to have selected Alan as the next CEO of CMHA, given his caliber and proven track record,” said Craig Reiter, President of the CMHA Board of Directors. “Alan has spent the last 25 years dedicated to public policy and governmental affairs—14 of those years advocating on behalf of CMHA. We are confident he will continue to strengthen our mission of informing, educating, and advocating for mental health across Michigan.”

A distinguished and highly respected lobbyist, Bolter joined the Community Mental Health Association of Michigan in 2009 and has since been recognized multiple times among Michigan’s most effective association lobbyists by the MIRS/EPIC-MRA Michigan Insider’s Survey in 2019, 2021, 2023, and again in 2025. His work has been instrumental in advancing the expansion of CCBHC sites statewide, securing increased wages for direct care workers, and championing key state appropriations that have expanded access to essential behavioral health services throughout Michigan.

Prior to joining CMHA, Bolter spent 12 years in Michigan state government, including roles in the Lieutenant Governor’s office and as Chief of Staff in both chambers of the Legislature.

“Stepping into this new role is a tremendous honor,” said Alan Bolter. “I deeply believe in the mission of the Community Mental Health Association and feel privileged to work alongside so many dedicated professionals who share our commitment to ensuring consistent, reliable, and affordable healthcare for all Michiganders.”

The Community Mental Health Association of Michigan (CMHA) is a trade association representing Michigan’s public mental health system, which delivers mental health, substance use disorder, and developmental disability services in every community across the state.

This partnership, with the Issue Media Group (IMG), is built around the concept of “solutions journalism” – providing news about innovative and concrete ways that communities, across Michigan, are addressing the needs of their residents along a number of dimensions – healthcare, economic development, education, the arts, to name a few. Solutions journalism investigates and explains, in a critical and clear-eyed way, how people try to solve widely shared problems. While news sources and many of us typically define news as “what’s gone wrong,” solutions journalism runs counter to that definition by covering the innovative responses to identified needs and problems.

This partnership ensures that the work of Michigan’s public mental health system is highlighted in IMG’s large suite of solutions journalism-focused publications.

You can subscribe, at no cost, to these publications, on the websites of each of these publications. The list of partner publications and their websites are provided below:

We’re currently seeking dynamic presenters and panelists who can help students:

• Learn about meaningful careers in behavioral health
• Explore education and training opportunities
• Discover local programs, mentorship, and job pathways
• Experience engaging, hands-on, or interactive sessions

If your organization, school, or team is interested in sharing your expertise, we invite you to submit a presentation proposal. Sessions can include career spotlights, panels, live demonstrations, or student-focused workshops.

Learn more here: www.mhc.org/bhspeakers
Deadline: November 30, 2025

This is a great opportunity to inspire the next generation of behavioral health professionals while showcasing the important work happening in your organization and community.

If you have any questions, please reach out to me at Aleysha Czartoszewski at aleysha.czartoszewski@mhc.org or contact MHC.

We look forward to collaborating with you to make this event impactful for Michigan students!

MDE’s goal in developing and sharing these documents to be a starting point to introduce Michigan schools to the value of creating a comprehensive school mental health system. We hope to expand on the initial comprehensive document with future iterations that include specific examples from Michigan schools and updated resources. The MDE School Behavioral Health Unit within the Office of Health and Safety will also provide technical assistance to schools looking to implement a comprehensive school mental health system.

Please feel free to distribute the documents to your networks and encourage anyone with questions or seeking technical assistance to reach out to us at MDE-OHS@michigan.gov.

On Oct. 1, the new federal fiscal year began without a congressional appropriation, creating the federal “government shutdown.” On October 10, USDA sent a letter to state SNAP agencies saying that if the shutdown continues, there will be insufficient funds to pay full November SNAP benefits for the approximately 42 million individuals across the country that rely on them. In Michigan, the number is roughly 1.4 million people. 

Nessel claims the agency has access to billions of dollars in SNAP-specific contingency funds appropriated by Congress for this very purpose. USDA has funded other programs with emergency funds during this shutdown but has decided that come November 1 it will not use the billions of dollars in contingency funds for SNAP, leaving millions of Americans without the assistance they need to buy food, Nessel said.

House Democrats proposed a $600 million emergency supplemental from the state’s rainy-day fund to make up for lost federal funding, allowing SNAP to remain temporarily operational for the 1.4 million Michiganders who use it, and $12.5 million for both the Food Bank Council of America and food pantry programs.

Michigan would put $300 million a month for two months into backfilling the Supplemental Nutrition Assistance Program (SNAP) that is due to be paused on Nov.1, under a bill package sponsored by House Democrats.

The 9 bills would:

• Increase public employers contributors to employees health insurance costs (change 80/20)
• Allow correction officers to participate in state police retirement system
• Protect public assistance from debt collections
• Allow Wayne County to levy a milage for a history museum

Appeals Judge Christopher M. MURRAY agreed that the Legislature has a “clear constitutional duty to present” the bills to Gov. Gretchen WHITMER. Because the time period to present those bills has passed, he believes “there is no constitutionally available remedy for this particular violation.”

Brinks filed the lawsuit in February against Hall, alleging he was “illegally blocking” the nine bills – HB 4177 , HB 4665 , HB 4666 , HB 4667 , HB 4900 , HB 4901 , HB 5817 , HB 5818 and HB 6058 of 2024 – which were passed by the Senate and returned to the House for presentation to Whitmer.

Court of Claims Judge Sima PATEL ruled the bills should be presented to the Governor, but she did not order Hall to do it.

Hall, who did not respond to a message seeking comment, has maintained that the current Legislature is not responsible for completing the business of the prior session – a position he maintained after Patel’s ruling. Hall previously said it was “unfortunate” that Senate Democrats did not take an interest in presenting the bills during the lame duck session, rather than try to legislate through the courts.

In the majority’s opinion, Appeals Judge Thomas CAMERON noted there is no provision in the constitutional language requiring presentation of the bills that limits the judicial branch’s authority to interpret and enforce the mandate.

Cameron noted that the “clear legal duty” to present the bills “rests with the Legislature as a whole,” and the Senate has a right to expect that the House will perform that duty because not doing so renders the Senate “unable to perform their duty themselves.”

Cameron, an appointee of Republican former Gov. Rick SNYDER, noted that “as such, the ministerial act of presentment must, by the facts of this case, fall on defendants.”

Appeals Judge Daniel KOROBKIN, an appointee of Whitmer, joined Cameron.

Murray, an appointee of Republican former Gov. John ENGLER, questioned whether Whitmer has the power to veto or to pocket veto the bills since they were not presented before a new Legislature was sworn in at noon Jan. 8.

“In the end, the Constitution provides the answer to the question of whether and when presentment must occur,” Murray wrote. 

DATA STORYTELLING ACROSS THE PROJECT LIFESPAN:
Using What You Know to Strengthen What You Do

Join us to build your capacity in transforming the data you already collect into powerful tools for learning, communication, and impact. Explore how to leverage data and use storytelling to support your programs and communicate purpose, successes, and needs to funders, partners, and clients. This opportunity is open to all regions.

The Learning Community will meet for 90 minutes, once a month. You can select the series that works best for you:

SERIES 1
Nov. 6, 2025; Dec. 4, 2025; Jan. 8, 2026; Feb. 5, 2026; and March 5, 2026.
Noon–1:30 p.m. HST | 2–3:30 p.m. PT | 3-4:30 p.m. MT | 4–5:30 p.m. CT | 5–6:30 p.m. ET

SERIES 2
Nov. 13, 2025; Dec. 11, 2025; Jan. 15, 2026; Feb. 12, 2026; and March 12, 2026.
9:00-10:30 a.m. HST | 11:00 a.m.–12:30 p.m. PT | Noon–1:30 p.m. MT | 1:00–2:30 p.m. CT | 2:00–3:30 p.m. ET

✅ Applications due: Oct. 31, 2025

📬 Applicants notified: Nov. 4, 2025

Please contact Jennifer.BaranPrall@austin.utexas.edu for more information.

COMMUNITY ENGAGEMENT ACROSS THE PROJECT LIFESPAN:
Deepening Partnerships to Strengthen Impact

Come learn powerful strategies for making community engagement more meaningful, reciprocal, and sustainable. Whether you’re launching a new initiative or strengthening existing efforts, you’ll gain practical tools for building trust, fostering shared leadership, and creating lasting impact. This opportunity is open to all regions.

The Learning Community will meet for 90 minutes, once a month. You can select the series that works best for you:

SERIES 1
Dec. 10, 2025; Jan. 14, 2026; Feb. 11, 2026; March 11, 2026; and April 8, 2026.
11:30 a.m.–1 p.m. HST | 1:30–3:00 p.m. PT | 2:30–3:30 p.m. MT | 3:30–5:00 p.m. CT | 4:30–6:00 p.m. ET

SERIES 2
Dec. 17, 2025; Jan. 21, 2026; Feb. 18, 2026; March 18, 2026; and April 15, 2026.
7:30–9:00 a.m. HST | 9:30–11:00 a.m. PT | 10:30 a.m.–Noon MT | 11:30 a.m.–1:00 p.m. CT | 12:30–2:00 p.m. ET

✅ Applications due: Nov. 5, 2025

📬 Applicants notified: Nov. 10, 2025

This partnership, with the Issue Media Group (IMG), is built around the concept of “solutions journalism” – providing news about innovative and concrete ways that communities, across Michigan, are addressing the needs of their residents along a number of dimensions – healthcare, economic development, education, the arts, to name a few. Solutions journalism investigates and explains, in a critical and clear-eyed way, how people try to solve widely shared problems. While news sources and many of us typically define news as “what’s gone wrong,” solutions journalism runs counter to that definition by covering the innovative responses to identified needs and problems.

This partnership ensures that the work of Michigan’s public mental health system is highlighted in IMG’s large suite of solutions journalism-focused publications.

You can subscribe, at no cost, to these publications, on the websites of each of these publications. The list of partner publications and their websites are provided below:

In this spirit, we are excited to launch Common Ground, a new platform where we at Issue Media Group seek to move people and communities forward by sharing stories of good ideas, solutions, success – and, dare we say, progress – from around our network of local news sites and beyond.

One of my recent reads has been “Possible, How We Survive (and Thrive) in an Age of Conflict” by William Ury. The renowned mediator of some of the world’s greatest conflicts of the past several decades writes:

“We live in a world of possibilities, some quite hopeful and some quite scary. In the end, our future depends on us. There is virtually no problem we cannot address and no opportunity we cannot realize if only we can work together.”

I’m a possibilist, and that’s why I love the solutions-based journalism we do at IMG. It’s not investigative journalism, which is very important work but which we leave mostly to others. Yes, we start with big problems and challenges, but we shift the focus to solutions, success stories and, most importantly, people with ideas and dreams. Possibilists.

Others also may focus on policy more than we do. We seek to share inspiration at the ground level, where seemingly average people accomplish extraordinary things. The people in the trenches. The real doers.

I also recently read John Green’s “Everything is Tuberculosis,” in which he writes: “When we know about suffering, when we are proximal to it, we are capable of extraordinary generosity. We can do so much for each other but only when we see one another in our full humanity, not as statistics or problems, but as people who deserve to be alive in the world.”

Our mission at IMG is vital journalism that moves communities forward. We aspire to create not just awareness but inspiration and, ultimately, impact. Common Ground shows what’s possible by telling stories of those who have shown the way. 

Common Ground will increase the impact of our journalism by uniting our network’s combined audience to a monthly reach of over 2 million readers annually. And it will increase the visibility of our valued underwriters who make possible the work we do.

Check it out at www.fromcommonground.com. If you are not already on our email list, sign up there to get a weekly newsletter that shares solutions stories from around our network of 17 local and regional news outlets and beyond. Follow us on Facebook and LinkedIn – and share with people in your networks. Together we can find more common ground in our communities and in our world.

To our underwriting partners, if all of this resonates with you and if you would like to come alongside IMG in this endeavor, please reach out to me, Hayley Roberts or Natalie DePhillips on our team. We’d love to talk to you about the possibilities.

John Montgomery, CEO

Jill Gerrie invites you to celebrate the life and memory of her husband, Norman DeLisle Jr., over lunch.

November 7th at 1:00 PM

One North Kitchen and Bar

1310 Abbot Road

East Lansing, MI

When describing himself, Norm led with what mattered most: hubby to Jill. He also described himself as a dog owner, advocate, strategist, trainer, and geezer. To all of us, he was a powerful voice for disability rights and justice for five decades – and a friend.

Norm was authentic, real, and a fierce challenger of any system that tried to control people with disabilities. Whether you knew him personally or were touched by the policies he fought for, the barriers he tore down, or the movements he helped build, we’d love to have you join us.

Come share your memories, laughter, and stories. Share a moment when Norm made you laugh, challenged your thinking, or showed up in his signature jean MDRC logo shirt and white sneakers. This is a time to remember the man who taught us to always challenge power and control and who never forgot he was one of us.

Lunch will be provided.

RSVP is appreciated for planning but not required to attend.

At Jill’s request, donations in Norm’s memory may be made to Michigan Disability Rights Coalition: https://tinyurl.com/wbv6emrj

Please share this invitation with anyone who would like to celebrate Norm’s incredible legacy.

With gratitude,

Michigan Disability Rights Coalition

The Center on Budget and Policy Priorities projected that 94,800 small business owners in Michigan, as well as 60,700 individuals tagged as “self-employed,” received coverage through the marketplace. 

Without the Enhanced Premium Tax Credits, healthier people receiving coverage through the ACA marketplace may drop their coverage as the price for insurance becomes prohibitive, making coverage even more expensive for those who need it.

Senate Health Policy Committee Chair Kevin HERTEL (D-St. Clair Shores) called, through his SR 81, to permanently extend the tax credits, which are set to expire at year’s end. The Department of Insurance and Financial Services (DIFS) told Hertel’s committee, 530,000 Michiganders were enrolled in the ACA marketplace for “Plan Year 2025.” 

“For 2024, nearly 90 percent of enrollees qualified for a subsidy, saving an average of more than $380 per month,” said Joseph Sullivan, director of DIFS’ office of innovation and research. “Failing to extend the enhanced tax credits beyond the end of 2025 will impact marketplace consumers out-of-pocket costs, and will have the biggest impact on those who use these tax credits to obtain affordable coverage, but also the entire market as a whole.” 

The KKF nonprofit reported that the enhanced tax credits were introduced in 2021, aimed at ensuring non-Medicaid eligible households weren’t spending large portions of their income on health insurance. Through them, a family earning $65,000 annually – or 415 percent of the federal poverty line – would have premiums capped at 8.5 percent of their household income. 

Based on the examples Sullivan has picked up, a 60-year-old couple earning $82,000 annually in Michigan will see their monthly premium rise from $580 to $1,710 monthly if the subsidizing tax credits expire. 

“That’s over a $1,000 increase a month. As a result, many residents may risk going without health insurance entirely. These individuals may still get injured or sick, and will need to seek care somewhere even if they’re not insured,” he said. “The expiration of the enhanced subsidies will also increase costs when a pool of relatively young and healthy individuals decide not to purchase coverage in the marketplace.” 

If healthier folks aren’t purchasing plans through the marketplace because subsidies are no longer making plans budget-friendly, Sullivan suggested the risk pool will be increased and premiums will rise even more.

In Region 10 PIHP v. State of Michigan (COC Case No. 25-000143), Judge Christopher Yates affirmed that DHHS holds statutory authority to use a competitive procurement process to restructure the state’s PIHP system. Yet, the ruling also draws a crucial legal distinction: while DHHS may act within the framework of existing law, it cannot employ an RFP as a vehicle to alter the Mental Health Code or to reassign duties that state law expressly assigns to community mental health service programs (CMHSPs).

Judge Yates stated that competitive procurement aligns with federal preferences and that the DHHS’s effort to reduce the number of PIHPs is within its discretion. However, he made clear that this discretion does not extend to rewriting state law. Specifically, the Court declined to dismiss claims that challenge RFP provisions which appear to strip CMHSPs of their statutory functions or to redefine those functions as “non-delegable” PIHP responsibilities.

In his opinion, Judge Yates cautioned that:

“The MDHHS cannot exercise that discretion in a manner that renders CMHSPs unable to carry out their statutory obligations.”

This point is fundamental: an RFP cannot be used to amend, reinterpret, or circumvent state statute. The Mental Health Code remains the governing legal authority over the roles and responsibilities of CMHSPs, regional entities, and PIHPs. Administrative actions—no matter how well-intentioned—must remain consistent with those legislative directives.

Thus, while DHHS may proceed with competitive bidding and system redesign within its statutory authority, it must do so in a way that preserves the legal functions and obligations established by Michigan law. Any RFP terms or structural changes that undermine or conflict with those statutory duties risk exceeding the Department’s lawful authority and may invite further judicial intervention.

Yates did not indicate what might occur next to resolve the remaining claim.

“As we face huge federal cuts that threaten to destabilize health care, we’re being strategic and proactive in Michigan to protect funding and stay flexible for the future,” said Whitmer, who held a press conference Monday, Oct. 13, in Kalamazoo to discuss her latest bill signing.

“Together, we will defend access to care for families and maintain a balanced, fiscally responsible budget. I’m grateful to our partners for working together to get this right for Michigan.”

Medicaid is a government-funded health insurance program for low-income individuals and families, as well as people with disabilities, children and more. Michigan receives billions of dollars each year from the federal government to administer the program.

Michigan uses an Insurance Provider Assessment tax to generate about $630 million in annual revenue, much of which is used to qualify for about $1.75 billion in federal match revenue under Traditional Medicaid and the Healthy Michigan Plan.

In July, President Donald Trump signed the “One Big Beautiful Bill Act,” which took aim at a subset of the provider tax that was perceived by the administration to be a loophole in federal rules.

The Big Beautiful Bill sought to cap state provider taxes at 6% in Fiscal Year 2027-28, before phasing the cap down to 3.5% in FY2031-32.

In September, the state House introduced House Bill 4968, which would have MDHHS request a waiver from the Centers for Medicare and Medicaid Services (CMS) to allow for continued collection and expenditure of that provider tax at current rates while the state prepares to implement required changes.

The bill passed through the legislature and went to Whitmer, who officially signed it last week along with the Fiscal Year 2025-26 budget. She held a public signing Monday.

Whitmer’s office said the state passed legislation to comply with the new federal regulatory landscape while preserving current revenue amounts and maintaining funding for health care providers statewide.

House Speaker Matt Hall, R-Richland Township, said the legislature was making smart reforms to protect Medicaid after Trump “took steps to stabilize Medicaid at the federal level.”

Senate Majority Leader Winnie Brinks, D-Grand Rapids, said the budget protects Medicaid from devastating federal cuts, “ensuring everyone is afforded the dignity of having access to care.

“With this bill, we are halting what was sure to be a catastrophic domino effect felt by all Michiganders, from kids, families, and seniors to health care workers and even to folks with private insurance,” Brinks said. “And by doing so, we have set ourselves apart as national leaders for the actions we’ve taken to safeguard Medicaid here in Michigan — and that’s certainly cause for celebration.”

Medicaid covers about 2.8 million residents, or 25% of the population, making it the state’s largest health insurer. In some rural counties, 40% or more of the population is covered by Medicaid.

Michigan is among the 40 states that have expanded Medicaid eligibility to adults with incomes up to 133% of the federal poverty line, according to the Citizens Research Council of Michigan. That’s an annual salary of about $20,345 for a family of one, or $35,444 for a family of three.

Whitmer said cuts of hundreds of billions of dollars to Medicaid would force providers in Michigan to close their doors, reduce the quality of services, and strip health insurance from millions of the most vulnerable Americans.

Federal changes to Medicaid included adding new work requirements.

Recipients who are able-bodied will be required to work at least 80 hours per month in order to continue to receive benefits, beginning in 2027. Exceptions exist for people 65 and older, parents with children younger than 14, pregnant women, and those “medically certified as physically or mentally unfit for employment.”

Amy Zaagman with the Protect MI Care Coalition called the bill signing a victory for every Michigander who believes quality, affordable health care should be within reach for all.

“By strengthening Medicaid and protecting the health coverage millions rely on, this legislation takes an important step toward making sure our state can continue to care for children, pregnant women, seniors, workers, and people with disabilities in every community,” Zaagman said.

Court of Claims Judge Christopher Yates said he plans to have an opinion prepared to publicize in Region 10 PIHP v. State of Michigan on Tuesday, Oct. 14. The lawsuit was brought in response to DHHS issuing an August request for proposals, or RFP, from entities to bid as new PIHPs covering mental and behavioral health care for patients with specialty needs. The RFP outlined new parameters for PIHP bidders which plaintiffs say violate the Mental Health Code and cause irreparable harm to the community mental health system many Michiganders rely on.

Currently, the state has 10 regions under DHHS, each managed by a PIHP charged with disbursing Medicaid funds to county mental health agencies and monitoring compliance with state and federal law. In the RFP, DHHS’s new parameters reduce the number of regions to three and, in effect, prevent the existing 10 PIHPs from bidding because PIHPs, under statute, only have authority in their service areas.

The lawsuit asserts DHHS drew the three new regions so that none of the existing PIHPs had a matching service area. One covers Macomb, Oakland and Wayne counties, all of which currently have their own PIHP. Another covers the Lower Peninsula from Mason, Lake, Osceola, Clare, Gladwin and Arenac counties south to the state line. The other covers the Upper Peninsula and the rest of the Lower Peninsula.

Some mental health groups have argued that the rebid of PIHPs constitutes privatization of the community mental health system, an argument DHHS has rejected since public entities are allowed to submit bids. However, since the 10 existing PIHPs cannot cover the service areas outlined in the new RFP, they’re effectively locked out of the bidding process unless they completely restructure themselves under new entities.

Plaintiff attorneys argued Thursday that since the deadline for bids to be submitted to DHHS for consideration is Monday, October 13, at which time Yates will still be deliberating, the currently existing PIHPs would effectively cease to exist if the declaratory judgement doesn’t go their way. The RFP sets an October 2026 deadline for new PIHPs to officially take effect, but attorneys for the current 10 said continuity of care cannot be guaranteed for all patients in the interim if Yates allows DHHS to move forward with its rebidding next week.

DHHS attorneys argued that the Mental Health Code and additional statutes give the department sweeping authority to select and approve PIHPs, with or without the consent of community mental health agencies.

“The Legislature clearly delegated that responsibility to DHHS, so whether any of us in this room agree with the policy changes or not, it doesn’t make them illegal,” the department’s lead counsel said in a closing statement to Yates.

Yates pressed both parties throughout the day with questions and requests for further information and said on multiple occasions that both sides had valid claims. He admitted to believing DHHS’s decision to issue the RFP was a poor one but acknowledged his policy opinion has no bearing on the legal facts of the suit or his decision.

“I don’t know whether it’s good news or bad news for you,” he said while addressing departmental attorneys before sending the courtroom home for the day, “that I think this is terribly unwise but quite probably legal.”

“Our budget fixes the damn roads, cuts taxes for seniors and working families, funds first responders, secures core health care services that millions of Michiganders rely on, protects our air, lakes and land and increases government efficiency to saves taxpayers time and money,” Whitmer said. “I’m so grateful to legislators on both sides of the aisle for coming together to get this done. Amidst so much uncertainty caused by a chaotic tariff strategy and a national government shutdown, Michigan is showing everyone how to get things done. In the weeks and months ahead, we will build on this momentum and come together on commonsense tools to create and retain good-paying jobs.”

Senate Majority Leader Winnie Brinks, D-Grand Rapids, and House Speaker Matt Hall, R-Richland Township, similarly trumpeted the budget’s affordability and road funding aspects in their statements and shied away from explicitly referencing the months of chaos and gridlock which made it late to both statutory and constitutional deadlines.

“While this budget cycle featured unprecedented challenges, it also provided us the opportunity to show the rest of the country what leadership can look like in divisive political times,” Brinks said. “The result: a bipartisan budget that fixes our roads, strengthens public schools, protects health care access and insulates us from some of the toughest federal cuts. Michiganders and their communities stand to benefit both immediately and into the future because of groundwork we are laying today.”

Hall, a minority in the negotiations despite being the leader of the majority in his chamber, continued to highlight the areas within the bills that Republicans were able to win by keeping from their own proposals, much of which were left on the cutting room floor, like certain state staffing and spending reductions and ending taxes on tips and overtime pay.

“People are frustrated when they struggle to pay their bills while the government burns through billions of dollars of their money like it’s nothing. Our state government spending has grown way beyond its means, and it’s time to rein it in,” Hall said in his statement. “This budget makes a significant difference in eliminating waste, fraud and abuse to lower state spending and give the taxpayers better value for their dollars. That’s how we were finally able to get our local roads fixed and pass the public safety trust fund, all while eliminating taxes on tips, overtime and social security. You can do a lot when you take the time to evaluate state spending and set better priorities.”

State Budget Director Jen Flood said in a statement that securing a balanced and fiscally responsible budget under divided government is something lawmakers can be proud of.

“In Michigan, we’re proving that both sides can come together to do hard things, and I’m proud of the budget. It fixes the damn roads, protects Medicaid coverage for more than 2 million Michiganders, and invests in our kids from pre-k through college,” Flood said. “At a time when families are dealing with higher costs, this budget builds on our record of fiscal responsibility by paying down debt and cutting taxes for seniors and working families.”

Whitmer also signed key revenue bills which accompanied the budget today, including those related to provider, marijuana and fuel taxes and decoupling state and federal business taxes.

On the Senate side, the no votes came from Sens. Thomas ALBERT (R-Lowell), Joseph BELLINO JR. (R-Monroe), Jonathan LINDSEY (R-Coldwater), Aric NESBITT (R-Lawton) and Jim RUNESTAD (R-White Lake).

The Fiscal Year (FY) 2026 omnibus spending bill is $7 billion smaller overall and $360 million smaller in General Fund spending due, in part, to a loss in federal funding. Legislative earmarks went from $815 million two years ago in FY 2024 to $120 million.

Republicans and Democrats both claimed wins. For Republicans, the budget is slightly smaller and includes fewer “ghost” state employees. It addresses the empty state office buildings, puts more funding into the roads and creates a transparent process for the legislative earmarks.

For Democrats, the free breakfast and lunch programs in K-12 school remains. Investments in health care, low-income housing and the social safety net also remain. The Senate also saw 25 percent increases in “at-risk” funding for high-poverty school districts and more money for English learners.

The big news from the budget, however, is the 25 percent cut ($690.7 million) to the Department of Labor and Economic Opportunity, which saw the complete deletion of money from the Strategic Outreach and Attraction Reserve (SOAR) Fund, a grant program designed to attract large corporate developments.

Other pieces of note from the omnibus spending bill, HB 4706 include:

• No deposit in the Rainy-Day Fund
• The elimination of more than 2,000 unfilled full-time employee positions, including 827 in the Department of Health and Human Services (DHHS) budget and 453 in the Department of Corrections budget.
• Constitutional revenue sharing is down $63 million and statutory revenue sharing is flat, but in its place is $95 million in grants to public safety, firefighters and prosecutors.
• Instead of mandating that all state employees return to the office, the state must make sure each state building is at least 80% occupied, or it’s to be sold.
• The House’s attempt to ban state or federal funding from being used on services, grants or programming for foreign residents not in the country legally did not make the budget.
• State departments will be required to submit their annual strategic plan as opposed to doing a scorecard on key metrics, as the House wanted.
• Continues the practice of state department and agency directors making sure geographically disadvantaged businesses compete for contracts.
• The House Fiscal Agency (HFA) report lists $1 billion in additional spending at this point in time.
• The Selfridge Air base received an additional $26 million.
• Diversity, equity and inclusion initiatives were not banned, as the House attempted to do.
• Departments would have to disclose private or other third-party funding they receive.
• Contractors and subcontractors would have to use the E-Verify system to prove that their workers are legally authorized to work in the U.S.

While many departments face modest reductions, the most significant changes are centered on the Michigan Department of Health and Human Services (MDHHS), which sees substantial shifts due to federal funding declines.

MDHHS Budget Highlights

• Overall Reduction: MDHHS gross funding is cut by 2% ($7.62 billion), largely the result of federal cuts.
• Federal Funding Decline: The bulk of this decrease — $5.87 billion — comes from reduced federal contributions.
• General Fund Support: To partly offset these losses, the state’s General Fund allocation to MDHHS will rise by 2% ($415 million).
• Provider Tax Changes: Driven by federal policy changes (One Big Beautiful Bill Act), $6 billion tied to provider taxes is removed. Instead, contingency funds are created in boilerplate:
  • $2.55 billion for the hospital qualified assurance assessment program.
  • $2.4 billion for the insurance provider assessment.
• Supplemental Funding: The bill includes $2.57 billion in supplemental funds for FY 2024–25, with $754.4 million from the General Fund.

In summary, the MDHHS budget reflects a sharp gross funding drop primarily due to federal spending reductions. The state is attempting to cushion the impact with increased General Fund dollars and by restructuring provider-related funding into contingency mechanisms, but overall, the department faces the largest contraction among all state agencies.

Specific Mental Health/Substance Abuse Services Line items

                                                                     FY’25 (Final)              FY’26(Exec Rec)        FY’26(House)            FY’26 (Conference)

-CMH Non-Medicaid services                     $125,578,200              $125,578,200              $125,578,200              $125,578,200

-Medicaid Mental Health Services           $3,387,066,600          $3,422,415,900          $3,352,643,500          $3,188,847,900

-Medicaid Substance Abuse services      $95,650,100                $98,752,100                $88,323,300                $96,323,300

-State disability assistance program        $2,018,800                  $2,018,800                   $2,018,800                   $2,018,800

-Community substance abuse                    $79,626,200                $80,207,900                $78,626,200                $79,207,900

(Prevention, education, and treatment

programs)

-Health Homes                                                  $53,418,500                $53,239,800                $25,000,000                $50,239,800

Program

-Autism services                                               $329,620,000              $458,715,500              $467,644,200              $467,644,200

-Healthy MI Plan (Behavioral health)      $527,784,600              $535,508,300              $531,044,900              $438,267,500

-CCBHC                                                                 $525,913,900              $916,062,700              $565,286,700              $916,062,700

-Total Local Dollars                                         $10,190,500               $9,943,600                   $246,900                      $9,943,600

Other Highlights of the FY26 Final Budget (Conference Report):

There is NO PIHP procurement language included – either to withdraw the RFP (as we pushed for) or the House language which allowed the RFP to move forward, the FY26 remains silent on the issue.

Sec. 1009. Medicaid Behavioral Health RFP – NOT INCLUDED

House requires the Medicaid behavioral health RFP to include specific performance measures of improved behavioral health outcomes, conflict of interest provisions, uniform standards and reduced administrative costs; requires a report on the process and rationale DHHS used to award the new contracts. Conference does not include.

PIHP Funding to One-Time Basis (NOT INLCUDED)

Conference report did NOT include the House proposal to transfer 6 Medicaid PIHP behavioral health services line items from the ongoing Behavioral Health Services unit to the One-Time Basis unit. Line items include, Autism Services, CCBHCs, Health Homes, Healthy Michigan Plan – Behavioral Health, Medicaid Mental Health Services, and Medicaid Substance Use Disorder Services.

Certified Community Behavioral Health Clinics (CCBHCs)

Conference report concurs with the Executive budget and adds $39.3 million Gross ($6.3 million GF/GP) for utilization and cost adjustments for the CCBHC demonstration program. Also includes a net $0 transfer of $350.8 million Gross ($75.7 million GF/GP) of base CCBHC payments currently within the Medicaid Mental Health and Healthy Michigan Plan – Behavioral Health lines into the supplemental payments CCBHC line.

Budget does include language – Sec. 1002 — CCBHC Demonstration
Department may not use funds to expand the CCBHC demonstration.

Medicaid Direct Care Agency Rate Reduction (NOT INCLUDED)

Conference report did NOT include the House proposal to reduce $215.8 million Gross ($74.9 million GF/GP) from reducing the direct care agency rates by $4.56 per hour. Rate reduction would have to come from agency overhead costs and not from direct care work wages paid through agencies.

Medicaid Methadone Rate Reduction (NOT INCLUDED)

Conference report did NOT include the House proposal to reduce $16.0 million Gross ($4.0 million GF/GP) to reduce the Medicaid methadone reimbursement rates from boilerplate section 965.

Medicaid Mental Health Local Match (NOT INCLUDED)

Conference report did NOT include the House proposal to remove $9.9 million of local funding, and associated federal reimbursement, used for Medicaid mental health services. Local funds were originally added to increase Medicaid mental health rates. Section 928 is related boilerplate.

Behavioral Health Lapse Savings

Conference report reduces a total of $4.0 million GF/GP from health homes ($3.0 million) and community substance use disorder($1.0 million).

Medicaid Pre-Release Services Demonstration (NOT INCLUDED)

Conference report did NOT include the Executive proposal to include $40.0 million Gross ($20.0 million GF/GP) for startup costs for correctional and other facilities, staffing, outreach, and IT costs of a new Medicaid demonstration program to provide 90 days of Medicaid covered pre-release services, including: case management, medication assisted treatment, pharmaceutical services, practitioner services, and diagnostics. Services that would begin in the following fiscal year.

Autism Benefit Managed Care Carve-Out (NOT INCLUDED)

Conference report did NOT include the Senate proposal to transfer $25.0 million Gross ($8.7 million GF/GP, which is a net GF/GP increase of $2.6 million GF/GP) from the CCBHC line for the department to make payments to PIHPs and CMHSPs for autism services outside of the managed care per-capita payment process.

BOILERPLATE SECTIONS

Sec. 902. Contracts Between DHHS and CMHSPs/PIHPs – RETAINED Requires final authorizations to CMHSPs or PIHPs be made upon the execution of contracts between DHHS and CMHSPs or PIHPs; requires DHHS to report if there are new contracts or amendments to contracts with CMHSPs or PIHPs that would affect rates or expenditures. (Document from the State Budget Office dated September 3 noted this section is unenforceable.)

Sec. 912. Salvation Army Harbor Light Program – RETAINED Requires DHHS to contract with the Salvation Army Harbor Light Program for providing non-Medicaid substance use disorder services, if program meets standard of care. (Document from the State Budget Office dated September 3 noted this section is unenforceable.)

Sec. 917. Michigan Opioid Healing and Recovery Fund and Report – REVISED Conference revises by updating allocation to $55.0 million and outlines distributions. (Sec. 1930. outlines the distribution of the one-time portion.)

Sec. 920. Rate-Setting Process for PIHPs – RETAINED Requires the Medicaid rate-setting process for PIHPs include any state and federal wage and compensation increases.

Sec. 924. Autism Services Fee Schedule – RETAINED Requires DHHS to maintain a fee schedule for autism services by not allowing expenditures used for actuarially sound rate certification to exceed the identified fee schedule, also sets behavioral technician fee schedule at not less than $66.00 per hour. (Document from the State Budget Office dated September 3 noted this section is unenforceable.)

Sec. 994. National Accreditation Review Criteria for Behavioral Health Services – NEW House requires DHHS to seek, if necessary, a federal waiver to allow a CMHSP, PIHP, or subcontracting provider agency that is reviewed and accredited by a national accrediting entity for behavioral health care services to be in compliance with state program review and audit requirements; requires a report that lists each CMHSP, PIHP, and subcontracting provider agency that is considered in compliance with state requirements; requires DHHS to continue to comply with state and federal law not initiate an action by negatively impacts beneficiary safety; defines “national accrediting entity.” Conference concurs with updated reporting dates.

Sec. 1002. CCBHC Organization Criteria – REVISED Language now states that Department may not use funds to expand the CCBHC demonstration.

Sec. 1003. Policies and Procedures for PIHPs or CMHSPs – RETAINED Requires DHHS to notify the Community Mental Health Association of Michigan when developing policies and procedures that will impact PIHPs or CMHSPs.

Sec. 1005. Health Home Programs – RETAINED Requires DHHS to maintain the number of behavioral health homes in PIHP regions and the number of opioid health homes in PIHP regions, and permits expansion into additional PIHP regions; requires a report. House revises to require any expansions to be made through the submission of a request to the legislature.

Sec. 1007. Autism Benefit Carve-Out – NOT INCLUDED Senate requires DHHS to make payments for autism services separate from per-capita payments to PIHPs and CMHSP.

Sec. 1009. Medicaid Behavioral Health RFP – NOT INCLUDED House requires the Medicaid behavioral health RFP to includes specific performance measures of improved behavioral health outcomes, conflict of interest provisions, uniform standards and reduced administrative costs; requires a report on the process and rationale DHHS used to award the new contracts.

Sec. 1034. PIHP Performance Incentives – NEW House conditions eligibility of PIHP performance incentives funded in part 1 on compliance with the provider rates for autism services and direct care in section 924 and 1031; requires the inspector general to audit claims and utilization data to verify compliance. Conference requires DHHS to seek CMS approval to condition PIHP performance incentives on compliance with the provider rates for autism services and direct care in section 924 and 231.

Sec. 1051. Third-Party Payments and Revenue Recapture Project – RETAINED Requires DHHS to continue a revenue recapture project to generate additional third-party revenue from cases that are closed or inactive.