DEEP DIVE: THE GOVERNOR’S 2026 STATE BUDGET PROPOSAL
Accessible healthcare is essential to well-being, yet many Michigan residents face significant barriers to care. For far too long, factors like a person’s race, income, ZIP code, and immigration status have been predictive of worse health outcomes, deepening long-standing disparities.
Limited access to healthcare providers, restrictive eligibility policies, and environmental hazards — such as lead-contaminated water or PFAS pollution — further undermine health and well-being. Poor health doesn’t just affect individuals; it ripples through families and communities, limiting educational and economic opportunities and increasing financial and caregiving burdens. Addressing these challenges requires sustained investment in a healthcare system that ensures all Michiganders, especially residents who are vulnerable and/or with low incomes, can access the care they need to live healthy lives.
The governor’s Fiscal Year 2025-2026 budget recommends a number of investments and policies to improve health outcomes for Michiganders by increasing access to healthcare, supporting Michigan’s healthcare workforce and addressing the social determinants of health.
Please note, most of the investments below fall in the budget for the Department of Health and Human Services (MDHHS); any differences to this are noted within the investment line.
HEALTHCARE ACCESS_____________________________
Access to timely, affordable healthcare is necessary to maintain and improve health. Medicaid and Medicaid expansion — known as the Healthy Michigan Plan in our state — are essential pathways for Michiganders with low incomes and of all ages to afford basic health services. Likewise, other investments within the state budget provide for increased access to important physical and behavioral healthcare.
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING FOR HEALTHCARE ACCESS:
✓ Funding to expand Medicaid eligibility, making it easier for older adults to qualify while keeping more of their personal savings. The governor’s Fiscal Year (FY) 2025-26 budget dedicates $96.4 million ($33.1 million General Fund) to raise the income limit and spend-down threshold from 30% to 100% of the federal poverty level (from $363 per month to $1,304 per month for an individual). This means seniors who previously had to spend nearly all their savings before qualifying for Medicaid, leaving them with limited financial security, will now be able to keep more of their money while still having access to the home and community-based services and other long-term healthcare services they need.
✓ Additional funding to help certified community behavioral health clinics (CCBHCs) keep up with growing demand and rising costs. The executive recommendation adds $39.3 million ($6.3 million General Fund) to support more people accessing services and represents a continued commitment to expanding and maintaining vital behavioral health services across the state.
✓ Wage increases for the nonclinical skilled nursing facilities workforce. The executive budget proposal dedicates a total of $14 million ($6.2 million General Fund) to support an $0.85 hourly wage increase for nonclinical staff working in long-term care. Nonclinical staff have been largely left out of recent long-term care wage increases in recent budgets. These are staff that still provide frontline care — including laundry, housekeeping, maintenance, or dining services — to keep some of Michigan’s vulnerable residents safe and healthy, and should receive appropriate wages.
✓ Funding to study the costs and benefits of Michigan joining the nine other states that have established multi-year continuous eligibility for young children enrolled in Medicaid or the Children’s Health Insurance Program. The executive budget proposal dedicates $400,000 ($200,000 General Fund) for this important first step.
✓ Direction of opioid settlement funds. Opioid use remains a significant concern across the nation, with increased access to both prescription medications and illicit drugs. Between 2011 and 2021, the age-adjusted opioid overdose mortality rate grew nationally and in Michigan. In Michigan, this rate increased from 7.5 per 100,000 in 2011 to 26.0 per 100,000 in 2021, which is higher than the national rate of 24.7 per 100,000. Due in part to these concerns, several states sued major pharmaceutical companies that manufactured or distributed opioids.
To settle these lawsuits, Michigan is expected to receive nearly $800 million from the opioid settlements over the next 18 years, with local governments expected to receive half of the funds and the state to allocate the remaining half. The governor’s budget directs $46.8 million from opioid settlement funds to expand prevention, treatment, and recovery services for individuals and families affected by the opioid crisis. Of this, $31.8 million is ongoing funding, while $15 million is a one-time investment. Funds will support the state’s goals of preventing opioid misuse, reducing overdoses and deaths, and ensuring resources reach the communities most in need.
PUBLIC AND ENVIRONMENTAL HEALTH _____________________________
Public health is constantly working — often behind the scenes — to protect us and our families. Public and environmental health services and programming prevent disease from occurring in the first place or provide resources to prevent its spread; promote physical, social and environmental health; and protect entire communities, along with our homes, from toxins. State-level investment that reaches the local level, along with innovative policies and programs, is key to strengthening Michigan’s capacity to respond to community-specific public health needs.
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING FOR IMPROVING PUBLIC AND ENVIRONMENTAL HEALTH:
✓ Continued investment to enhance water infrastructure, replace thousands of lead service lines and improve drinking water safety. The governor’s FY 2025-2026 budget recommends $80 million General Fund for water infrastructure projects. Of these funds, $50 million would be one-time funding specifically for lead service line replacement and associated activities such as water quality inspections in overburdened and significantly overburdened communities (Environment, Great Lakes and Energy).
WHAT’S MISSING?
X Adequate funding for lead poisoning investigations and response. Although the Flint water crisis has sparked critical investment in water infrastructure upgrades to remove lead in recent years, children still face threats from the primary source of lead exposure: deteriorating paint in older homes. When a child has been poisoned by lead, an elevated blood lead investigation is crucial to identifying the source and preventing future poisonings in the same home. Lead exposure response varies across the state based on the resources individual local health departments can cobble together. A state-level revenue stream, estimated at $86 million to $100 million annually, for local investigations and other critical response activity would ensure that all affected children receive the attention they deserve.
X Funding for full implementation of the Filter First legislation enacted to ensure safe drinking water in schools and child care centers. The Legislature initially appropriated $50 million for installation of touchless hydration stations and faucet filters in public schools. This is a cost-effective way to protect children from exposure to lead and other contaminants. Since that investment, the Filter First initiative has been expanded to include private schools and child care centers. More will be needed as institutions throughout the state move to adopt these measures by the end of the 2025-2026 school year. Robust support for the Filter First approach will better assure all parents that their children are safe, help mitigate the broader social and economic impacts of water contamination, and ensure equitable opportunity for all kids.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
