HB 5606 (Michigan) – Summary of Appropriations for DHHS, FY 2026-27
Purpose and overall intent
- HB 5606 is an appropriations bill for the Michigan Department of Health and Human Services (DHHS) for the fiscal year ending September 30, 2027. It creates and enacts an annual appropriation act specifying how funds from state sources may be spent and establishes general provisions governing those appropriations.
Key provisions and changes
- Part 1 – Line-item appropriations
- DHHS gross appropriation: $100 (presumably in millions, though the bill text shows a placeholder amount) for the fiscal year ending September 30, 2027.
- State general fund/general purpose (GF/GP): $100.
- This section establishes a single line-item appropriation for the department with a total state-source funding level of $100 GF/GP.
- Part 2 – General provisions and administrative framework
- Sec. 201 – State spending cap under Part 1 (FY 2027): Total state spending from state sources for DHHS Part 1 is $100; $0 is to be paid to local units of government.
- Sec. 202 – Compliance: All appropriations subject to the Management and Budget Act (1984 PA 431, MCL 18.1101 et seq.), i.e., standard state budget controls and reporting requirements.
Supplemental “Support documents” context (FY 2026-27 preface)
- The supporting documents indicate prior-year detail for DHHS PH (Public Health) and related programs, including:
- Various funding streams (General Fund/General Purpose, Federal, Local, Private, Restricted, etc.) and year-to-year changes.
- Notable year-to-year adjustments in the FY 2026-27 window from the FY 2025-26 baseline, including:
- Economic adjustments (salary/wage increases, retirement, occupancy, etc.) incorporated as a single line item.
- Several program-specific changes proposed in related materials (e.g., maternal/infant home visiting, senior nutrition funding, child advocacy centers, and immunization-related provisions). However, many of these appear in the broader DHHS discussion for FY 2026-27 and are subject to the actual bill language in Sec. 210, 215, 222, 226, 227, 233, 250, and other boilerplate sections.
Major boilerplate and policy considerations (House changes)
- Sec. 210, 217 (Legislative contingency and transfer authorities): Revisions to limits on transferring funds across categories (federal, state restricted, local, private). Tightens or clarifies transfer authorities to certain maximums; disallows increasing TANF via contingency transfers.
- Sec. 215 (Judgments): Departments cannot pay court-ordered judgments over $200,000 from departmental funds unless otherwise authorized.
- Sec. 226 (Citizenship requirement): Prohibits DHHS from using state or federal funds to serve non-U.S. citizens, except for qualified aliens under federal law (detention exceptions apply).
- Sec. 227 (DEI prohibition): Prohibits use of state funds on Diversity, Equity, and Inclusion initiatives as defined by certain Executive Orders.
- Sec. 224 (Legislatively directed spending): Revisions to grant administration, reporting, auditing, supplier transparency, and conflict-of-interest requirements, with DHHS posting grant recipient information and requiring spending plans and annual audits.
- Sec. 254 (Federal funds authorization): Not included in House version; the Executive’s proposed authority to receive/expend federal funds beyond the appropriation is not adopted.
Who would be affected
- The Department of Health and Human Services and, by extension, Michigan residents who rely on DHHS programs (public assistance, foster care/adoption, child protective services, behavioral health, public health, aging services, crime victim services, and Medicaid/Healthy Michigan Plan) would be affected through the funding framework and any program-specific allocations that flow from the appropriations.
- Grants recipients and partner organizations, as well as local units of government, would be impacted by the general and programmatic funding levels and any reporting/grant requirements embedded in the bill and related boilerplate provisions.
Timeline and procedural notes
- Introduced February 26, 2026; referred to Appropriations Committee.
- Provisions mirror a typical annual DHHS appropriations bill, with a final FY 2027 appropriation subject to the Management and Budget Act and subsequent legislative actions (Senate passage, conference committee, and formal enactment).
Overall assessment
- HB 5606 establishes a baseline, narrowly scoped appropriation for DHHS, with guidance on transfers, spending accountability, and several policy guardrails reflected in the boilerplate sections. It consolidates funding into GF/GP at $100 and enacts standard budget controls, while the supporting documents indicate broader DHHS program priorities and prior-year adjustments that may influence subsequent amendments or line-item changes in committee or floor action.