Bill
HB 5607
Establishes the FY 2026-27 DHHS annual appropriations act, detailing state funding for Medicaid, behavioral health, HCBS, and related programs with extensive reporting and oversigh
HB 5607 (2025-2026) – Michigan
Summary of The Bill: Appropriations for the Department of Health and Human Services for FY 2026-27
Purpose and framework
- What it does: Establishes the annual appropriations act for the Michigan Department of Health and Human Services (DHHS) for the fiscal year ending September 30, 2027, detailing funding from state sources and related provisions.
- Structure: Divided into Part 1 (line-item appropriations) and Part 2 (provisions concerning appropriations, including general sections and boilerplate).
Key provisions and changes (highlights)
- General appropriations (Part 1, Sec. 101):
- Gross appropriation for DHHS: $100.0 million
- State general fund/general purpose: $100. This appears as a baseline placeholder in the introduced text; the supporting material and line-items in the supporting documents show a substantially larger budget in practice (the FY 2026-27 Medicaid/behavioral health context). The bill as introduced lists $100 million for both gross and GF/GP.
- Fiscal framework (Part 2, Sec. 201–202):
- Article IX, Sec. 30 compliance: Total state spending under Part 1 from state sources for FY 2027 is $100.00; amount to local units of government is $0.00.
- Budget management: All appropriations are subject to the Management and Budget Act (1984 PA 431), MCL 18.1101 to 18.1594.
- Boilerplate and policy provisions (beefed boilerplate adjustments across sections):
- Legislative contingency transfers (Sec. 210/Sec. 217): House-specified caps on federal, state restricted, local, and private authorization adjustments; prohibits increasing TANF authorization via legislative contingency transfers (limits differ in the House version).
- Court judgments (Sec. 215): Departments may not pay court-approved judgments over $200,000 from DHHS funds unless authorized elsewhere.
- State Fiscal Recovery Fund, citizenship, DEI: The House version includes prohibitions on using funds for non-U.S. citizens (Sec. 226) and prohibits DEI programs in DHHS (Sec. 227).
- Legislatively directed spending (Sec. 250): Requires list of directed spending and grants management, reporting, audit requirements, and posting grant recipient information; adds comprehensive oversight and accountability requirements.
- Various reporting requirements: Expanded reporting on Medicaid programs, waivers, enrollment integrity, and performance standards (see health services and behavioral health sections below).
Behavioral health and health services (substantive program changes summarized from the accompanying analysis)
- Medicaid and Healthy Michigan Plan (as reflected in the supporting FY 2026-27 analysis, not all figures appear in the line-item text):
- Major program areas include Traditional Medicaid, Healthy Michigan Plan, actuarial soundness adjustments, provider taxes and federal match considerations, and various reform measures tied to federal policy (H.R. 1-related changes cited in the supporting document, with House positions generally preserving, adjusting, or removing certain executive proposals).
- Substantial proposed changes include premium and cost-sharing adjustments, managed care realignments, and program integrity measures (verification, enrollment accuracy, death-record reconciliation, improper payment recoupment, data-sharing, and federal waiver oversight).
- Health homes, CC BHCs (Certified Community Behavioral Health Clinics), and opioid-related funding are addressed with targeted allocations and reporting requirements.
- Autism services: Fee schedules for autism services and behavioral technician pay guidance; new quality control and fraud-fraud prevention measures contemplated.
- Rural Health Transformation, MI Choice, CHW (community health workers) initiatives, and emergency/ambulance reimbursement adjustments appear in the analysis with various funding changes and reporting expectations.
- One-time and restricted fund adjustments: Several one-time allocations and transfers between restricted funds and GF/GP are contemplated, with timing and reporting requirements.
Who is affected
- DHHS administers programs impacting:
- Medicaid beneficiaries (Traditional Medicaid, Healthy Michigan Plan, MI Health Link, PIHP/CMHSP contracts)
- Behavioral health services (SUD, mental health, CC BHCs, health homes)
- Older adults and vulnerable populations receiving home- and community-based services (HCBS)
- Providers and health plans serving Medicaid/Healthy Michigan populations
- Nonprofit mental health clinics, rural health initiatives, and community-based health workers
- State departments and local governments through funding allocations and reporting
Timelines and procedural aspects
- Effective for FY 2027 (ending September 30, 2027)
- Requires adherence to the Management and Budget Act and legislative oversight as outlined in the boilerplate sections
- Includes numerous reporting deadlines and data-sharing requirements (e.g., eligibility verification, enrollment integrity, grant compliance, and quarterly reporting for some programs)
- Some provisions reflect House-specific amendments to the Executive’s proposals, indicating ongoing negotiations between House and Senate (e.g., continuation/revision of wage adjustments for direct care workers, IT reductions, and specific programmatic line-item transfers)
Notes
- The bill’s text as introduced lists a modest base of $100 million GF/GP and $100 million gross for DHHS, but supporting documents indicate a much broader Medicaid/behavioral health framework with multi-billion-dollar budget components. The House version proposes extensive program changes, reporting requirements, and adjustments to multiple DHHS programs, subject to committee amendments during the appropriations process.
If you’d like, I can extract specific line-item amounts from the House Subcommittee summary or compare this bill’s provisions to the FY 2025-26 enacted budget for a more granular, side-by-side view.
Compiled from official sources — confirm details with the bill’s official record.
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