Changes to federal programs could result in Michigan needed to adjust its budget.
The One Big Beautiful Bill Act makes changes that could adjust the state’s obligation to Medicaid and SNAP by increasing cost sharing. Bob Schneider, Senior Research Associate for the Citizens Research Center, found that Michigan would need to cut around $1.1 billion in the general fund appropriations through 2032, starting as early as the next budget they’re currently negotiating.
“Can the state handle that? Yes, but it’s going to make budgets very tight now for the next, you know, five, six, seven budget cycles,” Schneider said.
Schneider says it also implements more favorable tax treatment for certain business expenditures, which are good for them but could have a ripple effect on Michigan’s corporate income tax collections.
