Federal Work Requirements Threaten Millions of Michiganders Without State Budget Support

GRAND RAPIDS, MI — Michigan officials warned that hundreds of thousands of residents could lose access to Medicaid and SNAP benefits without additional funding to handle increased caseloads from federal work requirements.

State leaders gathered at a Tuesday roundtable in Grand Rapids to discuss the impact of federal changes to Medicaid and food assistance programs that are taking effect in 2027.

The Federal Changes

President Donald Trump signed the One Big Beautiful Bill into law on July 4, 2025. The legislation included work requirements for both Medicaid and the Supplemental Nutrition Assistance Program.

SNAP work requirements already took effect in March 2026. The changes expanded the age range for individuals subject to work requirements from 18-54 to 18-64. The program now excludes exemptions for people experiencing homelessness and individuals under 24 who aged out of foster care.

Medicaid work requirements begin January 1, 2027. The program covers approximately 2.6 million residents, or 25 percent of the population, making it the state's largest health insurer.

The Numbers

According to a recent analysis by the Urban Institute, between 171,000 and 355,000 Michiganders could lose Medicaid coverage by 2028 based on the state's mitigation efforts. Nearly 100,000 Michiganders would be subject to three-times-a-week unemployment work requirements if those took effect.

Changes to SNAP requirements in March resulted in around 200,000 able-bodied adults without dependents losing work requirement waivers.

Between 650,000 and 700,000 current Healthy Michigan Plan recipients will soon face the new federal requirements.

Michigan Works! Sees Surge in Referrals

After changes to SNAP requirements were implemented in March, Michigan Works! saw a 16,783 percent increase in referrals for employment services in the first quarter of the 2026 fiscal year compared to the first quarter of the year prior.

The agency also saw a 616 percent increase in SNAP participants. In 32 counties, there was a 500 percent or more increase in referrals.

Jacob Maas, CEO of West Michigan Works!, said the goal of the association is to help Michiganders understand how to meet federal requirements, but ultimately position them to be in a better financial position so they do not need assistance in the future.

State Budget Recommendation

Governor Gretchen Whitmer's 2027 budget proposal includes $30 million in ongoing funding for work requirements and registered apprenticeships. The budget includes a $25 million investment in workforce training and development through Michigan Works! Agencies, along with $5 million for registered apprenticeships.

Susan Corbin, director of the state Department of Labor and Economic Opportunity, said these dollars will boost work participation, protect coverage for those who qualify, reduce costs from uninsured care and link people to jobs, training and support they need.

State Budget Office Sees Additional Burden

The state faces additional costs from federal changes. The percentage of SNAP funding covered by the federal government is set to decrease from 50 percent to 25 percent, meaning Michigan will cover 75 percent of the cost of administering SNAP beginning with the 2027 fiscal year.

State officials identified the change as shifting $95 million in annual costs onto Michigan.

Whitmer's budget proposal includes $104.1 million for 589 new full-time employees to implement new SNAP and Medicaid requirements.

What's Next

The state is now midway through its 2027 budget process. The legislature is putting out early proposals ahead of a May revenue estimating conference.

Elizabeth Hertel, director of the Michigan Department of Health and Human Services, said about 800,000 Michigan residents who rely on SNAP and Medicaid to take care of their families will be subject to work requirements.

"These benefits are vital lifelines for many families, especially with the rising costs of food and health care," Hertel said.