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State Budget Update
House School Aid Recommendation Removes Funding for KOHA
While the Senate subcommittees have moved their Fiscal Year 2025-2206 (FY 26) budget priorities, the House subcommittees have yet to issue recommendations aside from the School Aid and Higher Education budget.
In the House Republican’s School Aid budget, the GOP proposed substantial increases to per-pupil funding by wiping out categorical funding for many state programs. This would, according to House leadership, allow schools to individually dictate funding for programs. With this proposal, funding explicitly dedicated to dental screenings would be rolled into per-pupil payments. With the passage of legislation requiring kindergarten oral health assessments in 2023, this creates an unfunded mandate in the state and places an unnecessary burden on schools and local public health departments.
As the July 1 deadline for the budget to pass the legislature approaches, we are expecting that the House and Senate will meet this deadline for School Aid, but the General Omnibus will likely be worked on throughout the summer and potentially the early fall ahead of the September 1 start to FY 26.
Legislative Update
MOHC Provides Testimony to Michigan Senate
On June 4, Michigan parents, health providers, and advocates came together at the Capitol to urge legislators to safeguard Medicaid in the face of proposed federal funding cuts.
During a Senate Health Policy Committee hearing, members of the Protect MI Care — a coalition of 240+ organizations working to preserve access to health care — shared personal stories illustrating how essential Medicaid has been to their families’ survival and stability. Two mothers from Grand Rapids spoke about how Medicaid coverage made it possible to care for their medically complex children, one born with a serious heart defect necessitating open heart surgery, the other living with cerebral palsy and epilepsy. Both emphasized that Medicaid was not a “handout,” but a vital safety net that filled gaps private insurance did not cover. Coalition leaders and health experts warned that the proposed cuts would threaten access to care across Michigan, particularly in vulnerable and rural communities.
MOHC, and other partners of the coalition, submitted written testimony to the committee urging legislators to consider the impact cuts would have on Michiganders’ oral health. Those comments can be found in the record here.
House Hears Testimony on Smoking Cessation Funds
The House Appropriations Public Health Subcommittee heard testimony on the underfunded nicotine addiction and tobacco cessation programs in Michigan. Dr. Brittany Tayler, Keep MI Kids Tobacco Free Alliance co-chair, and Molly Medenblik, ACS-CAN, highlighted Michigan's failing grade in initiatives for Michiganders to stop smoking, ranking 44th in the nation for cessation funding. Of the $904.3 million in tobacco revenues, which include tax revenues, Michigan only spends $4.6 million per year on smoking prevention.
Regulatory Update
MDHHS Issues Medicaid Bulletin for Dental Service Billing Requirements
The Michigan Department of Health and Human Services (MDHHS) issued MMP 25-13: Medicare Physician Fee Schedule Final Rule 2025 – Dental Service Billing Requirements. This policy updated billing rules for dental services provided to Michigan Medicaid beneficiaries who are also eligible for Medicare, also known as dual-eligibles. The policy is effective July 1, 2025.
Policy Committee Update
As House and Senate members continue their FY 26 budget discussions, we are calling upon members to meet with their legislators in district at local events, town halls, or coffee hours to advocate for protecting Medicaid dental and funding for kindergarten oral health assessments.
You can find your elected officials here.
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