Article Summary –
Governor Gretchen Whitmer of Michigan signed a 2027 fiscal year state budget totaling $75.2 billion, which aims to protect residents’ access to social safety net programs affected by federal funding cuts, including $187 billion from SNAP and $1 trillion from Medicaid over the next decade. The budget allocates $184.3 million to assist with the implementation of new safety net program policies and provides resources like $20 million for community organizations to help residents navigate these changes and $28 million for Michigan Works! agencies to support compliance with new work requirements for Medicaid and SNAP. Additionally, the budget maintains free school meals for all public school students, cuts taxes, and includes a state-level earned income tax credit benefiting about 665,000 families, with an average of $3,900 each.
Michigan Gov. Gretchen Whitmer approved a state budget on July 21, focusing on protecting residents’ access to social safety net programs. These safeguards address funding cuts from the 2025 budget law signed by President Donald Trump.
The 2027 fiscal year budget, supporting state government and school operations, amounts to $75.2 billion, excluding around $11 billion in Medicaid provider taxes and federal school funding. This raises the total to approximately $86.4 billion.
According to a press release from Whitmer’s office, $184.3 million is allocated to assist state departments in implementing new policies related to safety net programs. The budget also assists residents in managing new federal rules affecting Medicaid and SNAP eligibility.
The law anticipates $187 billion cuts to SNAP and $1 trillion to Medicaid over the decade, endangering coverage for low-income Michiganders.
“This budget helps Michiganders facing high costs,” Whitmer stated, highlighting continued free meals for 1.4 million students, tax reductions, and infrastructure repairs.
The Michigan State Budget Office reports that in 2024, 1,474,400 residents, or 15% of the state population, were SNAP beneficiaries, with over half a million being children.
Medicaid insured over 2.6 million low-income residents by April 2025, according to the Michigan League for Public Policy; rural areas are most vulnerable to cuts.
SNAP participation dropped 10% between July 2025 and April 2026, while Medicaid enrollment declined by 9% in March 2026, according to KFF data.
In January, new work and reporting requirements for Medicaid will start. Recipients must work, attend school, or volunteer 80 hours monthly, with exemptions for the medically frail and parents of young children.
KFF warns of challenges for those unable to meet new requirements, including individuals with health issues not qualifying for exemptions and unemployed individuals.
Whitmer emphasized the need to stabilize social safety net programs due to federal changes, proposing alternative tax measures not included in the final budget.
The budget dedicates $20 million to help communities navigate program changes and $28 million for Michigan Works! agencies assisting with new work requirements. An additional $4 million supports registered apprenticeships for job seekers.
Karen Holcomb-Merrill, acting CEO of the Michigan League for Public Policy, praised investments to support Medicaid and SNAP beneficiaries and noted the continuation of Michigan’s earned income tax credit. Approximately 665,000 families will benefit, receiving an average $3,900 during tax season.
Holcomb-Merrill commented, “With last year’s federal megabill making food and healthcare less affordable, it’s encouraging to see this budget investing in families and aiming to mitigate harm.”
—
Read More Michigan News
