State officials advocate for funding to help Michiganders meet new federal work requirements

Hundreds of thousands of Michigan residents are at risk of losing health care, unemployment and food assistance

Grand Rapids, Mich. – Today, at a roundtable discussion with West Michigan stakeholders, several state leaders from the Michigan Department of Labor and Economic Opportunity (LEO), Department of Health and Human Services (MDHHS) and State Budget Office (SBO) urged state legislators to support Gov. Gretchen Whitmer’s FY27 Executive Budget recommendation to help hundreds of thousands of Michigan residents maintain their health care, food assistance and unemployment benefits.

The governor’s $30 million in ongoing funding ($25 million for work requirements, $5 million for Registered Apprenticeships) will be used to help Medicaid, SNAP and unemployment recipients maintain access to their benefits and meet new federal work requirements prescribed under the federal H.R. 1.

“Without this investment, hardworking, vulnerable people will get left behind,” said LEO Director Susan Corbin. “These dollars will boost work participation, protect coverage for those who qualify, reduce costs from uninsured care and link people to the jobs, training and support they need.”

The $25 million investment in Workforce Training and Development through Michigan Works! agencies will help Michiganders maintain access to benefits and support the infrastructure needed to train the state’s workforce. This ongoing funding is critical to ensure individuals can quickly access job search support, skills training, job placement assistance and vocational rehabilitation services.

“Last year, Congress passed H.R. 1, which has real world consequences for people across our state and country,” said State Budget Director Jen Flood. “Gov. Whitmer and her administration are working hard to ensure families can continue to access the health care and food assistance they need.”

Michigan’s workforce system is currently overwhelmed with the pressures of various work requirements found in H.R.1, which makes it more difficult to help Michiganders enter or get back into the workforce.

SNAP Work Requirements: Effective March 1, 2026

Last year, H.R. 1 eliminated the SNAP waiver for nearly 200,000 able-bodied adults in Michigan without dependents. This includes an expansion of those SNAP participants who must be engaged in work-related activities for those aged 60 to 64 and adults with children over the age of 14. Veterans, homeless adults and former foster youth are also now included.

Michigan initially implemented these changes in December 2025 based on federal guidance at the time. However, federal direction was subsequently revised, and the official, ongoing implementation of SNAP work requirements began March 1, 2026.

Even with that adjustment, when comparing the first quarter of FY25 (prior to the new work requirements) to the first quarter of FY26, Michigan Works! saw a 16,783% increase in SNAP referrals for employment services and a 616% increase in SNAP participants.

“About 800,000 Michigan residents who rely on SNAP and Medicaid to take care of their families will be subject to work requirements,” said Elizabeth Hertel, MDHHS director. “These benefits are vital lifelines for many families, especially with the rising costs of food and health care. The governor’s budget will help ensure eligible individuals don’t lose access to food assistance and health insurance because of paperwork and procedure.”

 

Unemployment Insurance Work Search Requirements: Effective July 1, 2026

Starting in July, applications will move from weekly work search requirements (already mandated) to a three times per week work search requirement. Approved work search activities include applying for jobs in person or online, creating a profile or resume on a professional networking or job site like MiTalent.org, participating in online job search workshops or seminars and attending job fairs.

If the three-times per week requirement went into effect right now, nearly 100,000 Michiganders would be subject to the requirements, which would put further strain on the state’s workforce assistance resources.

Medicaid Work Requirements: Effective Jan. 1, 2027

Next year under H.R. 1, Healthy Michigan Plan (HMP) recipients will need to show they are working or doing other approved activities for at least 80 hours prior to the month they apply for Medicaid coverage or for one month in between their Medicaid renewal cycle. Approximately 650,000-700,000 current HMP recipients will be subject to the new federal work requirements which will further increase demand for Michigan Works! services.

These new federal work requirements and state work search requirements will overburden local Michigan Works! agencies that provide Michiganders with important case management, job search assistance, work readiness training, vocational and self-employment training, job retention support and more. Michigan’s Workforce Development System served roughly 350,000 Michiganders in 2025.

Implementing new work requirements without adequate support could cause hundreds of thousands of Michigan’s most vulnerable residents to lose vital health, food and unemployment coverage.

“Helping people work requires meaningful, sustained investment,” said Jacob Maas, Chief Executive Officer of West Michigan Works!. “From personalized case management and job search support to skills training, work-based learning, and ongoing job retention services, these are resource-intensive efforts and investments that pay real dividends.”

The governor also recommends a $5 million investment in Registered Apprenticeships to build on a highly effective workforce development solution that allows individuals to earn while they learn, gaining industry-recognized credentials without burdensome tuition debt and expanding opportunities to meet federal work requirements under H.R. 1.

Michigan is a national leader in Registered Apprenticeships, ranking fourth nationally with over 24,000 active Registered Apprentices and more than 800 unique Registered Apprenticeship programs. The proven training model delivers an outstanding return-on-investment for businesses – every dollar invested in Registered Apprenticeship programs yields $1.47.

One year after program completion, Michigan Registered Apprentices have median annual earnings of more than $80,700 and a 94% employment rate.

“This is an investment that helps some of the most vulnerable members of our communities,” said Stephanie Beckhorn, Deputy Director of LEO’s Office of Employment and Training. “It helps stabilize their current financial situation while preparing them to make a meaningful contribution to our state’s economic future.”

Gov.  Whitmer’s eighth and final executive budget recommendation doubles down on the administration’s long-term priorities and delivers lasting results that will benefit all Michiganders. Amid national economic uncertainty caused by tariffs and deep federal cuts to Medicaid and SNAP, the budget lowers costs, protects access to health care and makes other key investments to help more families live, work and play in Michigan.

Visit the SBO website for more information regarding the FY27 budget recommendation.