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MDHHS Faces 20% Budget Cut Amidst Criticism and Performance Concerns

Budget cuts and mounting criticism force MDHHS to address performance issues. Can the department meet the challenges ahead?

In this image I can see many drugs which are placed on the floor.
In this image I can see many drugs which are placed on the floor.

MDHHS Faces 20% Budget Cut Amidst Criticism and Performance Concerns

Michigan's Department of Health and Human Services (MDHHS) faces a significant budget cut and mounting criticism. The 2025-2026 fiscal budget sees a 20% reduction to $30 billion, down from $37.6 billion, with over 800 jobs lost. MDHHS Director Elizabeth Hertel has testified before lawmakers, but Republicans allege lack of cooperation.

The budget cut comes amidst concerns about MDHHS' handling of child welfare and state psychiatric care. Lawmakers worry about delayed investigations into abuse and neglect cases. Director Hertel testified in September, addressing issues like foster care and welfare fraud. However, Republicans claim minimal cooperation and growing salaries within the department.

Adding to MDHHS' challenges, it may face $300 million in federal penalties due to a high error rate in the Supplemental Nutrition Assistance Program (SNAP). This program serves 1.5 million Michiganders. Despite these issues, Gov. Gretchen Whitmer is set to sign the budget this week, with MDHHS receiving $30 billion in gross appropriations.

The budget cut and ongoing concerns about MDHHS' services and cooperation with lawmakers highlight the need for improved performance and transparency. The department must address these issues to ensure the well-being of those it serves and avoid potential federal penalties.

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