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HB 5612

Appropriations: department of military and veterans affairs; appropriations for fiscal year 2026-2027; provide for. Creates appropriation act.

2025-2026 Regular Session Introduced by Ron Robinson

HB 5612 proposes a DMVA FY2026-27 appropriation with $100 GF/GP, adds stricter reporting, oversight, and new funds/governance for veterans programs and donor/grant management.

bill electronically reproduced 02/26/2026
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WeVote Research Nonpartisan
Bill Summary · HB 5612

Summary: House Bill 5612 (Michigan 2025-2026) – Appropriations: Department of Military and Veterans Affairs; FY 2026-2027

Baseline
- Purpose: Create an appropriation act to fund the Michigan Department of Military and Veterans Affairs (DMVA) for the fiscal year ending September 30, 2027, and to authorize expenditure of the appropriations.
- Sponsor: Rep. Ron Robinson (introduced Feb 26, 2026; referred to Appropriations).

Main Purpose and Intent
- The bill establishes a line-item appropriation for DMVA for FY 2026-27 and sets basic general-fund/general-purpose (GF/GP) and gross appropriation totals.
- It places DMVA funding under the state’s management and budget framework (Management and Budget Act).

Key Provisions and Changes
1. General appropriations (Part 1)
- Gross appropriation for DMVA: $100
- State GF/GP funding: $100
- This appears to function as a placeholder or minimal baseline within the bill’s form, likely awaiting final line-item detail in later amendments.

  1. Provisions Concerning Appropriations (Part 2)

    • Sec. 201: Confirms total state spending under Part 1 for FY ending Sept 30, 2027: $100 from state sources; $0 to local units of government.
    • Sec. 202: All appropriations are subject to the Management and Budget Act (PA 431, MCL 18.1101 et seq.).

  2. Major policy and boilerplate adjustments (as reflected in supporting documents and “Major Changes” sections)

    • Several substantive changes are proposed across DMVA’s programs in FY 2025-26 Year-to-Date context, with the House proposing reductions in specific line items (e.g., Michigan Youth ChalleNGe Academy, Headquarters and Armories, Military Training Sites, Michigan National Guard Member Benefit Fund, Michigan Veteran Homes Administration, MVAA Administration, Unclassified Salaries, Veterans Service Grants).
    • A large set of “boilerplate” and policy provisions are proposed or revised, including:
      • New reporting and transparency requirements (e.g., out-of-state travel reporting; public scorecard of performance metrics; biannual/quarterly reporting on grants and expenditures).
      • Restrictions related to DEI initiatives, services to non-U.S. citizens, and work policies (e.g., prioritizing in-person work, E-Verify-like reforms).
      • Requirements related to privatized and third-party funds disclosures, private donations, and grant oversight.
      • Introduction of a Veterans Service Fund (Sec. 412) to support VSOs; creation/administration by the MVAA for auditing purposes.
      • County Veteran Service Fund (Sec. 413) with reporting and allowable expenditures requirements (though some reporting requirements are proposed for deletion in the Executive version; House retains/deletes certain elements as noted).
      • "Legislatively Directed Spending" controls (Sec. 226) with enhanced reporting, milestones, audits, and website postings.
      • “Authorization to Spend Privately Donated Funds” (Sec. 254) allowing donor-directed funds to carry forward and be expended as designated.

  3. Michigan Veterans Affairs Agency (MVAA) and Michigan Veterans’ Facility Authority (MVFA)

    • MVAA programs: Revisions to claims assistance, training for county counselors, and grants to VSOs, with performance metrics and reporting requirements.
    • MVFA provisions: Expanded posting and reporting duties; revisions to veterans home reporting requirements; potential adjustments to how funds are managed and reported.

  4. One-time and capital considerations

    • Several one-time appropriations from FY 2025-26 are addressed, with the Executive proposing removal of certain one-time GF/GP funding (e.g., Selfridge AFB, Veterans nonprofit grants). The House concurs with the removal, aligning with a tighter ongoing funding posture.

  5. Personnel and workforce

    • Estimates of employment and FTEs provided for DMVA operations exist in supporting documents; the House indicates reductions in FTEs across several DMVA line items as part of 2025-26 YTD changes.

Timeline and Process
- This bill is an initial FY 2026-27 appropriation act in Michigan’s budget process.
- As introduced, it references the standard process under the state constitution and the Management and Budget Act; further amendments, committee action, and eventual floor votes would determine final appropriations and any additional policy riders.

Potential Impact
- Broadly, the bill aims to align DMVA funding with a tighter fiscal posture while increasing transparency and oversight through expanded reporting requirements, grant governance, and donor/fund management.
- For the DMVA’s components (National Guard, veterans housing, MVAA, VSOs, and related administration), the bill could entail:
- Reduced or reallocated GF/GP funding in several line items, depending on final amendments.
- New or expanded reporting duties, performance metrics, and public disclosures.
- Creation of dedicated funds (Veterans Service Fund; County Veteran Service Fund) and associated governance/oversight.
- Higher emphasis on compliance, precontract risk assessments, and accountability for vendor and grant activities.

Note on Sources
- The summary reflects the introduced text of HB 5612 and the accompanying House Fiscal Agency analysis, including proposed line-item changes, boilerplate provisions, and sections related to DMVA, MVAA, and MVFA. The actual final appropriations and policy riders may differ through the legislative process.

Compiled from official sources — confirm details with the bill’s official record.

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