Great Lakes Wire

LANSING, Mich. – Michigan Department of Health and Human Services (MDHHS) Director Elizabeth Hertel issued a statement regarding the passage of the balanced and bipartisan FY2025 budget.

“The fiscal year 2025 budget continues to move our state in the right direction with investments that keep kids safe, expand behavioral health access, strengthen Medicaid coverage, assist families, support the health care workforce and make a difference in the lives of our friends and neighbors across the state,” said Hertel. “I appreciate the support of Governor Whitmer and the Legislature which allows us to improve the health, safety and prosperity of Michigan families.”

Key items included in the MDHHS budget are:

- $161.5 million to establish new Certified Community Behavioral Health Clinics sites across the state to serve as many as 35,000 additional individuals, providing them with behavioral health services.

- $18.1 million in funding to continue the Healthy Moms, Healthy Babies program which helps new and expectant mothers receive the care they need and reduce racial disparities in infant and maternal mortality.

- $37 million in new funding for the Family Independence Program, including the first meaningful change to the FIP payment rate since 1990, and expanded supplemental payments to families with young children.

- $40 million for federally qualified health centers and $17.2 million autism Medicaid rate increases.

- $38 million for Child Caring Institutions to restructure rates and payments to provide financial certainty to providers and placement stability for children.

- $25 million for substance use disorder treatment to the Opioid Healing and Recovery Fund and $8.3 million to establish Medicaid reimbursement for hospital-based substance use disorder services provided by peer recovery specialists.

- $20 million to provide new funds to communities that identify innovative approaches to support expectant parents and newborns.

- $7.3 million to ensure individuals experiencing behavioral health crises have access to the Michigan Crisis and Access Line 24 hours a day, seven days a week.

- $1.5 million to increase clothing and holiday allowances for children in foster care. This investment is the first increase in state support to foster parents for clothing and holiday presents in over 20 years, increasing the clothing allowance by 40-50% (depending on the child’s age) and tripling the holiday allowance.