Federal legislation carries wins, concerns for Michigan counties
Sweeping federal legislation signed by President Trump on July 4 contains wins for local governments, but MAC has concerns about several key provisions that will shift costs and administrative burdens onto states and counties — especially in health care and other safety net programs.
Top concerns
SNAP administrative cost shifts
Beginning in FY27, counties in 10 states — including Michigan — will see their share of SNAP administrative costs increase from 50 percent to 75 percent. The National Association of Counties estimates this could raise the annual administrative cost share to $2.6 billion (up from $1.7 billion) for counties in the affected 10 states. The bill also imposes stricter work requirements for adults without dependents, which could further strain local support systems.
Medicaid work requirements and cost sharing
Starting no later than the first quarter of 2027, the law will require many Medicaid recipients aged 19 to 64 to meet work or community engagement requirements. While exemptions exist, these new conditions and redetermination processes will increase administrative complexity for counties responsible for eligibility operations. Additional out-of-pocket costs on enrollees, capped at $35 per service, could increase uncompensated care for county-funded hospitals.
Rural hospitals and staffing
The bill creates a $50 billion Rural Health Transformation Grant Program for FYs 28-32 aimed at strengthening rural hospitals and health providers. While this is welcome news, MAC remains concerned about staffing shortages in Michigan hospitals, which are already under immense pressure due to workforce constraints and increased patient needs. These grants must be thoughtfully deployed to make a real impact.
Positive provisions
Infrastructure and economic development
Counties will benefit from preserved municipal bond tax exemptions, new investments in Opportunity Zones, an expanded Child Tax Credit, and permanent extensions of key tools like the New Markets Tax Credit and Low-Income Housing Tax Credit.
Energy and environment
Counties will now receive 25 percent of revenues from wind and solar energy produced on federal lands and benefit from $13 billion in conservation funding from the repurposed Inflation Reduction Act (IRA) allocations. However, the bill also rescinds some unobligated IRA funds, potentially limiting local access to energy and transportation grants.
The bill delays the federal nursing home staffing rule until 2034 — giving counties time to address severe staffing shortages — and includes investments in local air traffic control infrastructure.
What’s missing
The bill notably omits reauthorization of the Secure Rural Schools (SRS) program, a key source of funding for counties with federal forest lands. However, a standalone bill (S. 356) to reauthorize SRS has passed the U.S. Senate.
MAC continues to advocate for a balanced federal approach that protects local control, avoids unfunded mandates and strengthens the essential services counties provide.
For more information on this issue, contact Jimmy Johnson at johnson@micounties.org.
MAC policy platform drafts are ready for member review
MAC members review and vote on policy platforms at the 2019 Annual Conference.
On June 25, the MAC Board of Directors approved policy platform drafts developed by the association’s policy committees over the last year. These platforms guide the work of MAC’s advocacy team in Lansing and Washington, D.C.
Final approval for these platforms will occur at the 2025 Annual Conference at the Grand Traverse Resort, Sept. 30-Oct. 2. Commissioners who are registered and attend the Annual Business Meeting will review and vote on drafts.
To review the drafts, visit the MAC website. This page is password protected, but each county’s chair and administrator were sent reminders with the county access credentials. If you have any issues logging into the site, contact MAC’s Derek Melot at melot@micounties.org.
Per MAC by-laws (see link at right), “A member wishing to submit an amendment to the MAC Platform shall submit the amendment to MAC at least five (5) days prior to the opening day of the MAC Annual Conference. (Deadline for the 2025 cycle is Sept. 25.) Such amendment will require a majority vote at the annual meeting to be adopted.
“An amendment to the MAC Platform may be presented from the floor during the annual meeting. Such amendment will require a 2/3 majority vote of the members at the meeting at which a quorum is initially established to be adopted.”
For any questions about the platforms, contact Governmental Affairs Director Deena Bosworth at bosworth@micounties.org.
Counties encouraged to defend local oversight in mental health
County boards are urged to adopt resolutions opposing the Michigan Department of Health and Human Services’ (MDHHS) proposal to competitively bid out the state’s Prepaid Inpatient Health Plan (PIHP) contracts. This is not an endorsement of the current system, but a call to preserve local control, transparency and community-based oversight.
The proposal would shift management of PIHPs from locally governed entities to private, for-profit or nonprofit health plans — a move that could weaken service quality and cut counties out of decisions about how Medicaid mental health dollars are spent. Since 1997, counties have played a critical role in ensuring the system is accountable and responsive to community needs.
Private health plans typically have much higher overhead costs — around 15 percent, compared to just 2 percent in the current system. This potentially could divert more than $500 million each year away from services and into administrative costs.
MAC agrees reforms are needed but believes they must be done in partnership with counties, CMHSPs, PIHPs and advocates. Key issues like workforce shortages, funding gaps and administrative inefficiencies should be addressed without sacrificing local input.
County boards are encouraged to pass resolutions opposing the current PIHP procurement process and calling for a pause while meaningful, collaborative reform is developed.
To access a resolution template, click here.
For more information on this issue, contact Jimmy Johnson at Johnson@micounties.org.
Podcast 83: Action in Lansing stalls, while Washington zooms forward with huge policy changes
It’s a tale of two cities in the newest episode of Podcast 83:
- In Lansing, the Legislature remains at an impasse on pretty much everything, MAC staffers report.
- Meanwhile, in Washington, D.C., new spending legislation enacted will mean massive – yet still not clarified – effects for Michigan counties.
“The (Michigan) House and Senate are at an impasse,” said Samantha Gibson, governmental affairs specialist, “as they have been for the last six or seven months now. … Typically, the school aid budget is done (by now) and the rest of the budget is done by July 1. … There’s no roads plan that anyone can agree on. The governor has made it clear she wants to see a road plan. Speaker (Matt) Hall has put forth a plan. Senate Democrats have yet to put anything forth, so we will see if and when they do that. But I think until that point, there’s not going to be much to talk about, because House Republicans are steadfast in if you want to do (the school aid budget), we’re going to do roads with it, and Senate leadership is adamant that everything gets done as a package deal together. So, a lot of discussions, a lot of meetings last week, but no movement on the needle, unfortunately.”
By contrast, federal lawmakers took historic action with a reconciliation bill that means massive changes for Medicaid coverage, food assistance programs and more.
On the plus side, reported Governmental Affairs Director Deena Bosworth, an effort to end tax-exempt status for municipal bonds was thwarted.
Still to be determined, though, is the ultimate impact of changes to Medicaid and SNAP (federal food assistance) for Michigan counties, said Jimmy Johnson, governmental affairs specialist.
“We have 1.5 million residents in Michigan that use SNAP benefits,” Johnson noted. “With these new cuts … we could see $285 billion to $300 billion over 10 years that are going to be cut as well. You are going to be putting in the work requirements. So, there’s going to be an additional administrative burden. And with that administrative burden, we could see, on the state side, up to $890 million of additional costs that the state’s going to have to be picking up the dime for. So, these are some things that we’re going to be watching.”
“Yes, they’ve got to figure out where they want to fill in (on the state budget),” replied Executive Director Stephan Currie, “and if they want to fill in in some of these areas. A lot of tough decisions are going to have to be made going forward. … (B)ut it does provide some clarity, at least, of what they have to deal with now, which I think is helpful in the overall budget process, when we start looking at getting a (state) budget done by Oct. 1.”
For more details, view the full episode, recorded on July 7, by clicking here or on the image above.
Previous episodes can be seen at MAC’s YouTube Channel.
Staff picks
- Iconic whitefish on edge of collapse as Great Lakes biodiversity crisis deepens (Bridge Michigan)
- 2024 Election Report: Michigan no. 3 in Turnout (Secretary of State’s Office)
- How Oregon’s ambitious transportation plan went nowhere (Governing)
- OpenAI ‘for government’ initiative aims to further integrate AI into public sector operations (American City and County)