
MAUW Member Policy Hub
Choose a button below for information & action alerts on public policy issues affecting ALICE and our work.
You can always click here for information on your state & federal elected officials, and for general advocacy tips & resources, click here.
211
211 Advocacy Opportunities
The Michigan United Way network leads the way in advocating for 211, including increased funding, with state government. See the drop-down menu for more resources that will help you join our state-wide effort for $6.6 million in state funding for Michigan 211.
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Whenever you have a conversation with a state legislator, please follow up by sharing our two-page budget brief with them.
Remember that 211 is a free public service designated by the Michigan Public Service Commission. See the enabling legislation here.
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Use these scripts to send a series of communications to your state reps and state senators between now and mid-April about the need for $6.6 million in funding for 211.
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Scroll to the bottom of MI211’s Legislators webpage to see 211’s call data from citizens in your State Senator or State Representative’s district.
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Prior to each February, consider asking local government bodies like a county board or city council to sponsor their own 211 Resolution, recognizing February 11 as 211 Day, or the week or month as 211 Week or Month.
Click here to access a template resolution made for you to amend and use.
Child Care
Child Care Advocacy Opportunities
MAUW Child Care Bill Tracker
Follow bills that would impact child care access and affordability for ALICE.
Follow this Early Childhood Budget Tracker from ECIC for early childhood budget updates across the Governor, House, & Senate
Child care is a critical window of opportunity to incubate human capital, and an essential support for ALICE families. There is no period of time that comes even close to the amount of growth and development and transformation that happens from the day you're born to the day you turn 5. It's an unimaginable amount of change and development for children and it's an opportunity to foster the most development for children because you cannot replace this time. It’s also the time of a child’s life when their parents have the greatest need to arrange for child care while they work.
But the child care market is breaking. Child care has risen faster than prescription drug costs over the last 10 years, yet nationwide 98% of our workforce earns more than the child care workforce. Providers can’t afford to pay teachers more without raising tuition above what families afford, and teachers can’t afford to stay. As a result, a Michigan State University study concluded two-thirds of the state are in “child care deserts,” where there are three or more children for every available spot in child care centers and licensed in-home care facilities
It's unaffordable for families and as a profession for workers themselves. It's a market that does not work along normal rules. It is a bedrock of our economy. The child care crisis costs the state an estimated $2.9 billion annually in employee turnover, absenteeism and taxes, according to the Michigan Chamber of Commerce.
There is no traditional market solution that is going to come. There is no technological solution - this is human care for young children. There is no innovation or automation that could change the basic fundamentals of child care.
One study in Michigan calculated that the state would need to spend $3.2 billion more per year to solve the child care crisis, above the $1 billion already going to early education.
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All early childhood educators in Michigan would be automatically eligible for the state’s child care scholarship. This has been implemented in Tennessee.
Risk: Low, competition for resources. There is some debate over whether this is the best way to support the profession - it’s not a bad way to subsidize incomes of providers with children, but many providers are not parents.
Landscape: Governor Whitmer has proposed this in her FY25 budget proposal in 2024. Think Babies Michigan also supports this priority.
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The state pays child care providers by reimbursing them for the care they provide by the day for children. Advocates for contracts argue that reimbursement underpays providers, who need to be at work whether they have 4 or 5 children attending that day. Contracting providers for slots would move our state more towards paying for child care like we pay for schools - essentially by enrollment, instead of by attendance.
The Areas with High Needs and Urgency map categorizes Michigan’s counties by their child care need as either “urgent” or “high priority.”
Risk: Low, but Higher when you scale up. total funding need for 0-3 care is estimated over $2 billion. Growing consensus in ECE field that new revenue streams are needed.
Landscape: Think Babies Michigan leads the coalition for this priority. The entire field of early childhood orgs & advocates are coalescing behind the idea of contracts instead of “reimbursement” for services - but they need voices from “outside”.
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Advocates in Michigan are pushing for the state to supplement early childhood educators’ wages with a tax credit.
See Michigan’s Children’s one-pager on the case for an early childhood educator tax credit
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Current eligibility for the child care scholarship (formerly called subsidy) is 200% of the Federal Poverty Line. Michigan has steadily increased eligibility in recent years. Only a small percentage of currently eligible families actually enroll in the child care scholarship.
The Child Development and Care (CDC) Scholarship Usage map shows providers accepting CDC scholarships and not accepting scholarships in June/July 2024 in relation to community characteristics.
Risk: Low, competition for resources.
Landscape: Many natural supporters especially among business community and centrist & business-minded legislators. There is a sense among many advocates that investment in the system must now catch up with eligibility expansion.
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A 2025 Upjohn Institute study found that GSRP returns $1.72 in economic value for every $1 invested. Here is an Infographic of the ROI of GSRP.
The ceiling for income eligibility for the state’s publicly-funded Great Start Readiness Program to children is currently 400% of the Federal Poverty Line. Recent proposals to increase eligibility to something short of universal have suggested raising to 450% or 500%.
NOTE THE UNIVERSAL PREK ITEM TOO.
Risk: Moderate. GSRP expansion is causing heartache in early childhood community, and political fight may be re-emerging over how many GSRP seats should be in public schools vs CBOs.
Landscape: Will be a difficult fight given recent expansion and divided government for an increasingly small ALICE population.
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Only 6% of kids who are income-eligible receive a child care scholarship in Michigan. One reason is that many providers refuse to participate due to low reimbursement rates paid out by the system. Raising payments to child care providers who participate in the state’s child care scholarship program - whether through biweekly reimbursement rates or other structures like yearlong contracts - is a commonly-recommended strategy for improving child care access.
Risk: Low, but Moderate when you get into larger-scale solutions. total funding need for 0-3 care is estimated over $2 billion. Growing consensus in ECE field that new revenue streams are needed.
Landscape: Think Babies Michigan leads the coalition for this priority. The entire field of early childhood orgs & advocates are coalescing behind raising provider payments & worker wages - but they need voices from “outside”.
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Michigan has lost many child care professionals in recent years to better-paying and/or lower-stress jobs. But providers cannot charge more from families to pay higher wages. The state could respond by dedicating funds to increase the pay or benefits of early childhood professionals and open up pathways to an early childhood credentials and careers, as has been done for other care professionals in recent years.
Read the 2025 Early Childhood Wage Study commissioned by the State of Michigan, with recommendations for moving towards better wage structures & public financing for early childhood professionals.
The Licensed Provider Changes (2022 to Today) map compares and maps the number of licensed child care providers and slots in 2022, 2023, 2024 and today.
Michigan’s Child Care Desertsmapillustrates how many children are competing for one licensed child care slot in an area.
Michigan's Licensed Providers map shows the location of current licensed child care providers by county and the distribution of slots by community characteristics.
See Michigan’s Children’s one-pager on the impact of the early childhood workforce.
Risk: Low, but Moderate when you get into larger-scale solutions. total funding need for 0-3 care is estimated over $2 billion, much of which would be directed towards increased wages.
Landscape: Divided government makes small movement possible but not guaranteed due to the expense that comes with raising payments at any rate. The entire field of early childhood orgs & advocates are coalescing behind raising provider payments & worker wages - but they need voices from “outside”.
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Expanding income eligibility for tri-share and providing increased funding would enable expanded access.
Risk: Low for policy reforms, Moderate for a significant funding increase. The future of this program is a primary source of tension between early childhood “advocates” and the business community.
Landscape: Strong support for expansion from the state’s chambers of commerce and many business leaders who advocate for early childhood. United Way of Northwest MI provides backbone services.
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The Caring for MI Future Investments map breaks down prelicensure grant, start up grant, and facility improvement grant awards by county.
The Child Care Providers’ Utilization of Caring for MI Future Resources map reports prelicensure grant, startup grant, facility improvement grant, and business sustainability funding usage by county.
Housing
Housing Advocacy Opportunities
MAUW Housing Bill Tracker
Follow bills that would impact housing access and affordability for ALICE.
In Michigan, ALICE is facing dual, and related crises of housing shortage and homelessness.
Housing Shortage
Half of vacant units are second homes or short-term rentals. We have an aging and shrinking housing workforce and rising costs of construction. Local efforts to build housing can run into vocal opposition. As a result, home prices have shot up by 50 percent over four years. In 2023, just one quarter of homes were bought by first-time homebuyers, an all-time low, and that the median age of a homebuyer was age 56, which was an all-time high.
Homelessness
About 33,226 Michiganders experienced homelessness in 2023, the most recent year for which statewide data is available. That was an increase of about 2%, or 521 individuals from 2022 and an even larger jump from 2020, when the state reported 30,746 people experiencing homelessness. When a young person does not have a consistent place to stay, their health and education suffer.
United Way brings together businesses, labor partnerships, and other community leaders and ALICE needs with the knowledge of the UW network to build out solutions for ALICE & housing. We can lend our voice to housing needs across the housing continuum, from people in homes but struggling with the basic costs of housing to low-income & acute homeless housing issues.
We can advocate for state policies that build capacity to expand, preserve, and improve housing for ALICE.
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Support for any housing protections for renters or homeowners.
Current bills that would create protections for renters or homeowners include the following (see tracker below for links to bills):
Tenant’s Right to Repair (SB 19)
Allow for return of a tenant’s security deposit by electronic transfer (SB 22)
Removal of prohibition on a tenant’s right to form a Tenant Union (SB 21)
Risk: Low to High depending on the mandate of any particular proposal and who is targeted.
Landscape: Many of these bills are driven by the Michigan Coalition Against Homelessness. The Michigan Rental Property Owners Association, developers, and MSHDA are key stakeholders in the passage of any legislation, especially in divided government.
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Continue or increase dedicated state funding for building affordable housing through the Michigan Housing and Community Development Fund (HCDF). Michigan recently passed a law providing $50 million annually into the HCDF, and advocates argue that at least $100 million of need annually exists.
Proposals introduced by Republican lawmakers and a Democrat state rep would divert a one-time $50 million allocation to the HCDF to road funding.
Risk: Moderate, competition for resources & revenue streams. Would likely be a party-line vote, and would affect funding for economic development incentives that benefit some large UW donors.
Landscape: Democrats are considering a proposal to divert future corporate income tax revenues (that currently are spent on economic development incentives but will that plan expires in 2025) into the HCDF.
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Advocates Guide to Federal Housing Policy - National Low Income Housing Coalition
Income & Tax
When ALICE has more money to spend, we all benefit. Households who spend money on basic needs put that money back into local economies, through grocery stores, mechanic shops, and all the other goods and services that we use regularly in our communities. Boosting the incomes of households living below the ALICE threshold pays for itself in more stable families and a stronger economy.
The tax code right now is one of our most effective levers for supporting the incomes of ALICE. At the state and federal level, we have seen recent action to provide financial assistance to ALICE through expansions of the Child Tax Credit and Earned Income Tax Credit (also known in Michigan as the Working Families Tax Credit).
See below for current opportunities to boost ALICE’s incomes.
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The 2017 federal tax reform raised the CTC from $1,000 per child to $2,000 through 2025. The reconciliation measure that the House of Representatives passed on May 22 increases the maximum possible CTC to $2,500 per child.
Expanding the Child Tax Credit is a priority of United Way. Support the UWW Action Alert on the CTC.
Eligibility
It is important to recognize a “catch” with the federal CTC. Increasing the full credit amount to $2,500 per child, for example—as the House reconciliation bill does—would result in no increase in the credit whatsoever for millions of children in low-income working families, and the poorest 20 percent of families with children overall would receive just 2 percent of the new CTC benefits. The top 20 percent of families with children, by contrast, would get nearly 10 times as much in new CTC benefits, with a family with two children not losing eligibility for the CTC until its income reached $500,000. And the top two-fifths of families with children would get twice as much in new CTC benefits as the bottom two-fifths.
Under current law, families need to earn upward of $30,000 a year to receive the full tax credit amount. Up to $1,600 of the CTC may be refundable per child. This refundable portion is known as the Additional Child Tax Credit (ACTC). To be eligible for the ACTC, you must have earned income of more than $2,500. The refund is generally 15% of your earned income over $2,500, up to that $1,600 per-child cap.
This math winds up delivering a less-than-maximum CTC to about 20M kids in working households nationwide. These families’ median income is about $23,000. In Michigan, this affects 637,000 children (CBPP, 2025), including 35% of kids in rural areas and 31% of kids in metro areas. Estimates also conclude that roughly 19,000 children of veterans are affected by this cap.
Debates continue over who should be eligible for the full CTC.
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More info to come
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Proposals in the Michigan House and Senate would cut the state’s income tax from 4.25% to 4.05%.
The proposal would represent a less than 5% decrease in the overall tax bill for most Michiganders and could save the median Michigan household — which earned $71,149 in 2023 — about $131 a year. The nonpartisan House Fiscal Agency estimates the cut would reduce state revenue by more than $700 million a year, a decline that some lawmakers warned could be too steep.
MAUW supports more targeted income tax relief that provides a greater benefit to ALICE households.
Risk: Very High to support, Moderate to Oppose. This is seen as a highly partisan effort. We cannot publicly comment on this without a viable alternative.
Landscape: The traditional pro- and anti- coalitions along liberal and conservative lines.
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Current state funding: $3.3 million.
CEDAM runs the Michigan Economic Impact Coalition which leads advocacy efforts for VITA funding.
You can join the MEIC and subscribe for email updates at the link above.
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Currently, children must have a valid SSN issued by the Social Security Administration before the due date of the tax return (including extensions) in order to be eligible for the CTC, and each of their parents on the tax return must have a valid SSN or ITIN. Current tax proposals in Congress would change this to also require each parent on a tax filing to have a SSN only.
Status Lives in U.S.? Has SSN? Pays U.S. Taxes? CTC-Eligible? EITC-Eligible?
Citizen ✅ Yes ✅ Yes ✅ Yes ✅ Yes ✅ Yes
Resident Alien ✅ Yes ✅ Often ✅ Yes ✅ Yes (with SSN) ✅ Yes (with SSN)
Nonresident Alien ❌ or Partial ❌ no ITIN ✅ U.S. income ❌ No ❌ No
Undocumented Immigrant ✅ Yes ❌ (ITIN) ✅ U.S. income ❌ (unless child has SSN) ❌ No
An ITIN is issued to people who are:
undocumented workers for the purpose of collecting taxes from their income,
Noncitizen spouses, if a U.S. citizen files a tax return with a noncitizen spouse
Noncitizens claimed as dependents on a U.S. tax return,
Are students, professors, or researchers under certain visas
Tax law currently provides a $500 dependent credit available to undocumented children and others ineligible for the CTC, but most low-and moderate-income families earn too little to access this benefit since it is nonrefundable.
As of 2018, roughly 15,000 children do not have a SSN.
MAUW Income & Tax Bill Tracker
Follow bills that would directly affect ALICE incomes and major sources of tax revenue for investments into supports for ALICE.
Income & Tax Advocacy Opportunities
Health & Nutrition
Health Care & ALICE
Medicaid is a backbone of healthcare for ALICE. As of February 2025, more than 2.6 million residents, 26% of the population, were enrolled in Medicaid — about 1.9 million in the traditional program and roughly 740,000 in the expansion program known as Healthy Michigan. Approximately 1.4 million were getting food assistance, according to state data.
Medicaid covers one in five Michigan adults age 19 to 64, three in five nursing home residents and 38% of live births, according to the Kaiser Family Foundation. The Michigan League for Public Policy estimates that the U.S. government paid for 76% of total Medicaid spending in Michigan in 2024.
Over 1 million children, or 2 in 5 statewide, receive health coverage through Medicaid;
ALICE Seniors depend on Medicaid for long-term services and supports, including nursing home care and home-based assistance;
ALICE Michiganders who otherwise would not receive Medicaid/ACA health care can receive inpatient and outpatient care and medications through the Medicaid-funded Breast & Cervical Cancer Control Navigation Program (BC3NP) (which 211 supports with a special resource directory)
People with disabilities who use Medicaid to access services that help them live and work in their communities;
In 2024, 45% of all babies born in Michigan were covered by Medicaid, and nearly half of all children in the state are insured through the program. In rural Michigan, the percentage is even greater, as the majority of births in most rural counties are covered by Medicaid. Medicaid also plays a critical role in behavioral health and substance use treatment, especially in rural and underserved areas.
Beyond its importance to ALICE, Medicaid is a major economic driver for Michigan. As of 2024, the program supports more than $24 billion in annual healthcare services, with over 65% of funding provided by the federal government. Medicaid expansion alone has brought over $1 billion in federal funds into Michigan and supported more than 10,000 jobs.
See more on the basics of Medicaid in Michigan.
Food & ALICE
ALICE often makes ends meet by making sacrifices to their long-term well-being. Nutrition is a common sacrifice made by people living below the ALICE threshold. Nutrition deficiencies can have lifelong implications for children in ALICE households. In 2023, the Urban Institute’s Well-Being and Basic Needs Survey found that 1 in 4 adults paid for groceries with a credit card and took on debt, either by not making the minimum payment or carrying a balance.
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Early On is a statewide system of free early diagnosis and intervention services for developmental delays and disabilities for infants and toddlers. All families in Michigan are eligible for Early On. The system is funded with some state funds and IDEA Part C funds, but primarily through county-based special education millages.
Over the past three fiscal years, Early On Michigan’s state and federal funding ranged between $32 million and $35.2 million, with approximately $18.7 million in Medicaid reimbursements (2023) and additional local funding. Based on FY 2025 state and federal funding ($32m) and estimated Medicaid reimbursements ($18.7M):
An additional $205 million is needed to cover the cost of current services.
An additional $280 million is required to fund target service levels.
While exact gaps are difficult to determine based on the lack of available information on county special education millage funds used towards Early On in each area, for the first time we have a “true cost of care” for early intervention services. Read the full report.
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State-level data on debt in excess of $250 owed specifically to providers or collection agencies (i.e., excluding debts accumulated using general borrowing tools like credit cards and personal loans, debt owed to family and friends, and any medical debts below $250) shows that the percent of adults with this kind of medical debt in Michigan (9 percent) is above the national average (8 percent), which is similar to Ohio and Wisconsin, but lower than Illinois and Indiana.
Michigan included $4.5 million in the FY2024 budget for a grant program “to eliminate medical debt to patients with an income below the federal poverty level with a financial need or who face insolvency.” There is some effort to build on this funding in this year’s budget.
RIsk: Low, Competition for resources. This has been a particular priority of Senate DHHS Budget Chair Sylvia Santana and was mentioned in Governor Whitmer’s 2025 State of the State Address.
Landscape: Supported more on the progressive side, not many institutional stakeholders active on this issue, mostly just competition for DHHS funds.
The Citizens Research Council of Michigan published a report following these developments on the current state of medical debt regulation, with policy recommendations.
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Provide continued funding to support Medicaid reimbursement for the full continuum of perinatal care, including reimbursements for doulas, birthing centers, group-based prenatal care, & lactation support.
Risk: Low, competition for resources. Though it could become Moderate if/when work requirements return as a policy issue in Michigan.
Landscape: Michigan League for Public Policy leads advocacy efforts for this with Think Babies Michigan.
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Support universal school meals by joining & completing the action alerts at the Healthy School Meals For All coalition.
The site includes background on the program, key facts, and ways to get involved. If you’d like to be listed as a coalition partner, please fill out this quick form:
🔗 Partner Sign-Up FormPlease share the school meals story collection form with your networks. Personal stories from families, school staff, and students are making a real impact with legislators.
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Federally, the topic of “Community Eligibility” is the center of school lunch policy. Congress is considering raising the threshold.
See which school districts are currently “Community Eligible”
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MAUW is part of the Protect MI Care Coalition supporting Medicaid advocacy with Congress. See the Protect MI Care Launch Toolkit.
Proposals to cut Medicaid by $880 billion over the next decade, as outlined in the House Budget Resolution, would be devastating for Michigan. In 2026 alone, our state would experience:
$2.2 billion in lost federal funding
$4.9 billion in lost economic output
$2.9 billion in reduced state GDP
Cuts of this magnitude would force impossible choices—shrinking access to care, shifting costs onto state budgets and local providers, and threatening coverage for seniors in nursing homes, those receiving cancer care, veterans, people with disabilities who need daily support, and working families who can’t afford private insurance.
Worse still, the damage wouldn’t stop with those who rely on Medicaid. These cuts would destabilize the entire healthcare system. Hospitals, birthing centers, mental health clinics, and nursing homes across Michigan depend on Medicaid to keep their doors open. If that funding disappears, many of these facilities will be forced to shut down, leaving entire communities without essential services. And when a hospital or clinic closes, it doesn’t just close for Medicaid patients but for everyone. Whether someone has Medicaid, private insurance, or Medicare, it won’t matter if there’s nowhere to go for care. These closures would create healthcare deserts across our state, straining the remaining providers and putting all residents at greater risk with fewer options, longer wait times, and reduced access during emergencies.
The Medicaid expansion halved hospitals' uncompensated care costs, and the state government does not have revenue to offset possible federal cuts.
Source: Crains (paywall)
In addition to potential Medicaid cuts, additional cuts have been made to federal funding for public health programming in MI, including lab capacity to prevent infections diseases and substance use services.
Increasing the frequency of mandatory eligibility checks for expansion enrollees to every six months would increase administrative burdens and reduce access to care. Many Medicaid coverage losses at redetermination are due to procedural challenges, not a change in eligibility. Therefore, increased redeterminations would create more opportunities for missing mail, higher burdens of completing paperwork, and a greater chance for losing coverage despite remaining eligible.
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Here is a summary of the work requirements proposals in the House and Senate versions of the OBBA:
The House and Senate both propose a work requirement of 80 hours per month for able-bodied adults who receive benefits. Limits exemptions to parents with children ages 14 and under. Allows state exemption from the new requirements until December 31, 2028.
The House and Senate both propose requiring states to establish Medicaid community engagement requirements for able bodied adults without dependents.
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The Michigan State Budget Office (SBO) released a memo calculating the total cost of the congressional bill under consideration to Michigan at $900 million, including massive cuts to Medicaid and SNAP. Nearly 15% of Michiganders, almost 1.5 million people across every region, receive SNAP benefits. More than 59% are families with children, 39% are families with members who are older adults or are disabled, and 41,000 are veterans, around 10% of our total veteran population. Data also shows that 67% of SNAP recipients are covered by Medicaid, meaning the legislation being moved through Congress could threaten both the health care and food access of nearly 950,000 Michiganders.
SNAP is an effective program that has lifted 232,000 people above the poverty line in Michigan, including 101,000 children. SNAP dollars are spent at approximately 9,800 retail locations across the state, supporting jobs and local economies across the state.
We know that using SNAP leads to fewer missed days of work, fewer doctor’s visits, better mental health, and healthier birthweight for babies whose moms who have access to food benefits during pregnancy. Seniors who use SNAP are less likely to need hospitalization, less likely to be admitted to a nursing home, and more likely to actually use the medications they are prescribed.
Most working-age adults who receive SNAP supplement their low wages with SNAP or receive SNAP when they’re temporarily out of work. Many work in low-paid jobs with unpredictable hours. Taking SNAP away will hurt workers who are between jobs, work in industries that don’t provide a consistent number of hours per week, or get lost in the burdensome, red-tape-filled-process of documenting their work hours.
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The current House reconciliation bill would extend SNAP work requirements to households with school-age children, raise the maximum age when work requirements apply from 54 to 64, and limit states’ ability to request work requirement waivers for areas with high unemployment. People subject to the policy would be limited to three months of SNAP benefits within a 36-month period unless they meet the work requirement by working or participating in a qualifying work program.
Roughly 44,000 Michigan SNAP enrollees would lose some benefits, and 86,000 would lose all benefits under work requirement expansions. 28,000 enrollees with children would lose some or all SNAP benefits.
While the House bill would preserve work requirement exemptions for veterans, homeless individuals, and youth who were in foster care, the Senate OBBA proposal omits these exemptions.
Another proposal would aim to save money by rolling back changes made to the “Thrifty Food Plan”, which estimates food costs across US regions to set SNAP monthly benefits. The Thrifty Food Plan was updated under the previous administration to respond to the higher cost of food.
Urban Institute has calculated the gap between a moderately-priced meal in your county and the maximum SNAP benefit after proposed rollbacks to the Thrifty Food Plan. See your county stats here.
Charitable Sector Policy
Giving USA has found that individual giving declined by 13.4% in recent years. The Charitable Act (S. 566 / H.R. 3435) would create a universal charitable deduction or above-the-line tax deduction (i.e., a tax deduction that taxpayers can claim on their Forms 1040 regardless of whether they use the standard deduction or itemized deductions) for non-itemizers who make charitable contributions. The deduction would be capped at one-third of the standard deduction (about $4,600 for individuals and $9,200 for couples).
In January 2025, Sens. Lankford (R-OK) and Coons (D-DE) and Reps. Moore (R-UT), Davis (D-IL), Miller (R-WV), Pappas (D-NH), and Panetta (D-CA) reintroduced the Charitable Act (S.317/ H.R. 3435) to expand and extend the expired non-itemized (above-the-line) charitable deduction to roughly $4,500 for individuals and $9,000 for couples.
Last session, Sens. Peters and Stabenow and Reps. Scholten and Thanedar co-sponsored this act in their respective chambers.
This session so far, Sen. Peters and Reps. Scholten and Thanedar have so far co-sponsored these acts.
The Charitable Act would boost donations by $40B/year (Two-page economic analysis by Capital Policy Analytics)
Independent Sector polling shows overwhelming public support for strengthening charitable giving. Eighty-eight percent of voters support permanently restoring the universal charitable deduction for all taxpayers. Support for expanding the deduction up to $5,000 has reached a four-year high of 83%, including at least 82% of both Trump and Harris voters. These numbers send a clear message: Americans believe in the power of nonprofits and want to see them thrive.
Charitable Sector Advocacy Opportunities
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Here are differences between the House and Senate’s charitable sector tax provisions in the “One Big Beautiful Bill Act,”
House bill contains:
A proposal to increase excise tax rates on the net investment income of private foundations based on their asset size. New data shows that this provision on endowment income at private foundations would reduce the grant dollars going to communities by nearly $60 million in Michigan alone. Under the current 1.39% flat tax rate, Michigan’s private foundations pay more than $24 million in federal taxes.
A 1% floor for corporate charitable deduction eligibility, meaning corporations could only deduct charitable contributions exceeding 1% of their taxable income (also known as Adjusted Gross Income).
A provision to temporarily reinstate a universal charitable deduction for non-itemizers ($150 for individuals, $300 for joint filers for tax years 2025-2028).
A provision that could have allowed for the termination of tax-exempt status for organizations designated as “terrorist supporting organizations” was removed from the bill before its passage in the House.
Senate bill contains:
No excise tax increase on private foundation investment income.
An enhanced universal charitable deduction, which would lead to a permanent universal charitable deduction of $1,000 for individuals and $2,000 for joint filers (with a .5% AGI floor).
A 1% floor on charitable deductions from corporate philanthropy, like in the House.
Michigan Nonprofit Association is asking nonprofits to urge their Republican members of Congress to take the following positions in a conference committee:
OPPOSE limits on individual and corporate giving. These proposals (Section 70111, Section 70425, and Section 70426) discourage charitable donations made by individuals and corporations, ultimately leaving nonprofit organizations with fewer resources to serve their community.
SUPPORT and further EXPAND tax incentives for charitable giving. Congress should include in the tax reconciliation package, the Charitable Act, introduced by Sen. Lankford (R-OK), Sen. Coons (D-DE), Rep. Moore (R-UT), and Rep. Pappas (D-NH) to create a non-itemizer tax incentive for charitable donations to nonprofit organizations. See NCN’s one-pager on the Charitable Act
Here are updated resources on the tax bill:
General Federal Budget Resources
Nonprofits are experiencing incredible upheaval at the moment, especially when it comes to their relationship with the federal government. In its estimate, the Chronicle of Philanthropy finds that from January 20 to April 30, the nonprofit sector lost at least 14,430 full-time jobs, including 4,400 in April — largely in the IRS categories of international, foreign affairs & national security (4,295 positions), health care (4,347 positions), and human service organizations (1,984).
First Focus presents a pretty comprehensive description of the policy ideas under more serious consideration for federal budget cuts through budget reconciliation, and provides information about their impacts from a liberal perspective. This should be used for informational purposes but should likely not be looked to for messaging.
Click here for a comprehensive list of policy ideas under consideration by the US House Ways and Means Committee for reductions to “pay for” any budget reconciliation. This is quite a wonky document but shows what the House Majority are looking at and the cost/savings attached to each one.
2025 Budget ReconCiliation
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The law makes permanent a universal above-the-line tax deduction of $1,000 for single and $2,000 joint filers for charitable contributions for nonitemizers.
Corporations will be required to donate at least 1% of their taxable income to quality for the charitable tax deduction, and will also be subject to a 10% ceiling for charitable deduction.
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The new law increases the child tax credit to $2,200 per child starting in tax year 2025 and adjusts it for inflation into perpetuity.
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Medicaid Expansion (Healthy Michigan) Work Requirements
Able-bodied adults under age 65 enrolled in Medicaid will need to provide proof twice a year of at least 80 hours a month of completing “community engagement requirements,” such as work, education or service to keep their coverage. The plan exempts seniors, parents of children aged 14 and under and people with disabilities.
State Funding Affected
In Michigan, approximately 20% of the state's non-federal Medicaid funding is generated through provider taxes. The recent changes to provider tax policy in Medicaid will require the state to find around $200 million to $500 million in new revenues to meet its state match requirement.
Co-Pay Requirement
The law also states to impose cost sharing of up to $35 per service for the Medicaid expansion population, with some exceptions for primary and mental health/substance use disorder care as well as care received at federally qualified health centers, behavioral health clinics, and rural health clinics. Out-of-pocket costs cannot exceed 5% of family income. Under current law, Medicaid enrollees often don’t pay anything for care because studies show even small copayments could prompt low-income individuals to forgo care.
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1. Expanded and Stricter Work Requirements
The law significantly expands who must meet work requirements and narrows who qualifies for exemptions:
Groups Now Required to Work or Participate in Training (20+ hours/week):
Able-Bodied Adults Without Dependents (ABAWDs):
Age range expanded from 18–49 to 18–64.
Parents of Children Aged 7 and Older:
Only parents with children under age 7 are now exempt.
Older Adults:
Adults up to age 65 are now subject to general SNAP work requirements (previously capped at 60).
Caregivers:
Must provide full-time care to a household member with a documented disability to qualify for exemption.
People with Temporary or Partial Disabilities:
Must have formal medical certification of a long-term or total disability.
Homeless Individuals, Veterans, and Former Foster Youth (Under 25):
Exemptions for these groups expire.
Geographic Waivers:
USDA may only grant waivers in areas with unemployment over 10%, and only for 12 months.
States may exempt only 1% of ABAWDs in non-waived areas (down from 8%).
2. State Cost-Sharing for SNAP Benefits
For the first time, states must help fund SNAP food benefits:
Starting FY2028, states must contribute to SNAP funding if their error rates exceed 6%:
A 6-8% rate leads to a state paying for 5% of their benefits. 8-10% is a 10% benefit pay requirement, and any state with a rate above 10% is on the hook to pay for 15% of their state’s benefits.
States must also pay for 75% of administrative costs.
Going by these estimates, the State of Michigan could pay up to $815 million ($722m for benefits, $92m for administration).
3. Restrictions on Thrifty Food Plan (TFP) Updates
The TFP determines SNAP benefit levels based on a low-cost diet model:
Future updates must be cost-neutral—no increases in benefit levels unless offset by cuts elsewhere.
Market basket updates limited to once every 5 years
Annual inflation adjustments remain, but real increases in benefit adequacy are frozen.
As a result, the average family with children will see their benefits decline by roughly $55, according to the Urban Institute.
4. Changes to Utility Allowances (SUA)
The SUA helps households deduct utility costs to increase SNAP eligibility and benefit amounts:
Households must now prove receipt of energy assistance (e.g., LIHEAP) to qualify for SUA.
Self-reported utility expenses no longer qualify.
Affects households in states with limited LIHEAP access or outreach.
USDA estimates up to 600,000 households could see reduced benefits.
Another notable change is in how housing expenses are calculated. Currently, households can count internet and phone bills as part of their housing costs, which can increase their SNAP benefit amount. Under the new proposal, these costs would be excluded. This shift could result in smaller benefits for families who spend a significant portion of their income on communication services.
5. Immigrant Eligibility Restrictions
Eligibility is now limited to:
U.S. citizens
Lawful permanent residents (green card holders)
The following groups are no longer eligible unless they obtain permanent residency:
Refugees
Asylum seekers
Victims of trafficking or domestic violence
Certain humanitarian parolees
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Student Loans
The OBBB caps graduate-level federal student loans at $20,500 per year, at $50,000 for law & med school government loans, and $20,000 for Parent PLUS loans for undergrads. There is a $100,000 cap on lifetime graduate loans, and a $200,000 cap for medical & law students. There is a $65,000 lifetime cap for Parent Plus loans, and Parent PLUS loans are not eligible for repayment programs.
Student loan borrowers will have just two repayment options: a standard plan and an income-based repayment plan that allows for forgiveness after 30 years, instead of 20 or 25. The SAVE plan is being phased out by July 2028.
Economic hardship and unemployment deferments are eliminated.
Loans can be rehabilitated twice instead of once.
Pell Grants
Students with full-ride scholarships are excluded from Pell eligibility, and “workforce” Pell Grants are established for students who are in short-term work programs that don’t end with a college degree.
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For an in-depth look at the distributional effects of the tax changes in the OBBB, see the Institute on Taxation and Economic Policy.
Social Security Deduction
A maximum $6,000 tax deduction effective until 2028 on people over 65 who receive Social Security benefits. Note that this is not a $6,000 reduction in taxes but a reduction in taxable income. The full $6,000 deduction applies to individuals with an adjusted gross income (AGI) up to $75,000 and married couples up to $150,000. The deduction phases out completely at $175,000 for singles and $250,000 for couples. Survivors, dependents, and disabled workers under 65 are not eligible in this new tax break.
Standard Deduction
The law permanently increases in the standard deduction, bringing the total to $15,750 for individuals and $31,500 for joint filers, adjusted for inflation in future tax years.
Tips & Overtime Deduction
New above-the-line deductions (mean: reductions in Adjusted Gross Income BEFORE you choose the standard deduction or itemized deductions) of up to $12,500 for overtime pay and $25,000 for tip income through 2028, though the reductions would drop for filers making $150,000 or more.
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The federal government will put $1,000 into individual accounts for babies born between January 1, 2025, and December 31, 2028.
To be eligible, the baby must be a US-born citizen, and both the parents and the baby must have Social Security numbers.
The family and others may make annual contributions to the account so long as combined they don’t exceed $5,000 a year, although nonprofits may be able to donate more.
The money must be invested in a low-cost, diversified US stock index fund or equivalent, and no withdrawals may be made until the child turns 18. Taxes are deferred on growth until the money is withdrawn.
The account is intended for expenses tied to higher education or “post-secondary education credentialing,” buying a home or starting a small business.
Distributions for qualified expenses will be treated as capital gains, which are taxed at a lower rate than ordinary income. But they will be taxed as ordinary income and subject to an additional 10% tax if an under-30 beneficiary uses them for other expenses.
Only half of the cash value of the account may be withdrawn between the beneficiary’s 18th and 25th birthdays.
There is no allowance for emergency use of the funds. That means families and beneficiaries would pay a penalty for early withdrawal.
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A recent study from Voices for National Service found that every $1 in Federal taxes invested in AmeriCorps and Senior Corps returns $17.30 to society.
41% of funded grants are being terminated, a total of $400 million in grants and 1,031 grantees totaling 32,465 AmeriCorps and Senior Corps members. Most if not all contracts and vendors cancelled. An 85% staff reduction at the Americorps agency has been ordered.
It is unclear yet if VISTA is included, what programs are in the cuts, and what this means for in the pipeline future FY25/26 programs etc.
Reps. Jack Bergman (R-MI) has cosponsored the Protect National Service Act in the House of Representatives, which would prohibit the use of federal funds to eliminate the AmeriCorps agency.
From what we can gather, it seems continuation grants were funded – but many well-known and impactful AmeriCorps programs in new/recompete found out that their FY25 grants were not funded or were funded pending the release of funds from the Office of Management and Budget (OMB). A mixture of events – the end of the American Rescue Plan funds, the loss of specific grant funds for Public Health AmeriCorps programs, and an increase in member living allowances – has contributed to a particularly competitive year for grant awards without increased funding. We know that communities across the country are going to be impacted by as programs lose their AmeriCorps grants and their ability to provide critical services.
For programs that were funded "pending release of FY25 funds” - please contact your congressional delegation and ask them to reach out to OMB to ask that they release the funds for new and recompete grants. We are hearing that both the AmeriCorps agency and OMB are receiving a significant amount of pressure about this issue, and we need to keep maximum pressure on until they act. You can use the sample email for congressional outreach we (linked here).Action Opportunities:
Email your Members of Congress in less than two minutes using this easy Contact Congress email tool.Voices have updated the letter to reflect these new developments, so if you’ve already sent a letter in the last week, you can send another one to your lawmakers now.
Call your lawmakers using this simple call script and instructions. This is an important way to share more about your personal experience with AmeriCorps as an alumni, supporter, or program partner.
Please let MAUW know how your work is being affected by the Americorps cuts.
A group that is considering litigation regarding AmeriCorps cuts has been in touch with the National Council of Nonprofits. If you are aware of nonprofits that have been negatively affected by the cuts to AmeriCorps or have been yourselves, you can contact Rick Cohen at rcohen@councilofnonprofits.org and he will link you up with this group.
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The Emergency Food and Shelter Program (EFSP) is a cost-effective, community-driven initiative that provides emergency aid to ALICE households through local nonprofits, churches, and charities—not government bureaucracies. It supports faith-based organizations, reduces strain on law enforcement, and ensures temporary relief for neighbors with emergency needs. With low administrative overhead, EFSP maximizes resources for food and shelter while maintaining fiscal responsibility. By strengthening communities and stabilizing crises, it prevents greater government spending down the road. EFSP is a smart, locally controlled safety net that upholds nonpartisan values of efficiency, public-private partnership, and community resilience in times of hardship.
Phase 42 EFSP funds have been frozen by the federal Administration, and some communities are experiencing clawbacks of funds. Use this script for emails and phone calls to your Congressperson in Michigan to encourage the disbursement of all committed EFSP funds so ALICE can benefit.
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Here is an action page for Head Start federal budget advocacy. This is not United Way/ALICE messaging but contains an editable message.
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Congress will soon begin negotiating a spending bill to fund HUD’s vital affordable housing and homelessness assistance programs in the coming fiscal year. The recently passed fiscal year (FY) 2025 spending bill underfunded HUD programs, providing insufficient funding for renewal needs for programs like the Housing Choice Voucher (HCV) and Homelessness Assistance Grants (HAG) programs. As a result, fewer households will receive needed rental and homelessness assistance.
Urge federal lawmakers to expand - not cut - investments in HUD programs in the FY26 spending bill, including NLIHC's top priorities:
Full funding to renew all existing Housing Choice Voucher (HCV) contracts and funding to renew 60,000 Emergency Housing Vouchers (EHVs).
Increased funding for public housing operations and public housing capital needs.
$4.922 billion for HUD’s Homeless Assistance Grants (HAG) program.
$20 million for the Eviction Protection Grant Program (EPGP).
At least $1.3 billion for HUD’s Tribal housing programs and $150 million for competitive funds targeted to tribes with the greatest needs.
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See NPR’s good summary on potential student loan changes included in the House-passed “One Big Beautiful Bill”
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On February 7, United Way Worldwide held a workshop on Applying for US Federal Earmarks in 2025: What you need to know virtual briefing.
To view recording of webinar click the link here. Passcode: @7onFn.d (Password is case sensitive)
Please see below for resources that were mentioned:
Senator Murkowski’s instructions for FY26 Guidance for Congressionally Directed Spending (CDS) Request
Sign up for United Way’s weekly Policy Newsletter
UWW Federal Advocacy Resources
View talking points and United Way Worldwide’s action resources for Congressional budget reconciliation advocacy in support of SNAP and Medicaid.
Federal Administration Updates
To help you and your partners navigate the high volume of potential changes being made within the federal administration, we have gathered some resources here for you. First, United Way Worldwide has created a great webpage on Navigating US Federal Policy Change at United Way Online.
This spreadsheet tracks all Executive Orders and their current status and next steps, including legal challenges. If you are interested in a particular legal challenge, this webpage may have additional details on the current status of the case.
Messaging Tips
Americans Against Government Censorship has conducted messaging research on responding to the current administrative actions that would encroach on the ability of nonprofits to accomplish their missions, such as expanding efforts to rescind the tax status of non-aligned nonprofits. As circumstances intensify, it is even more critical that we use these learnings as a grounding tool with both the press and the public.
See this excellent messaging guidance here.
EO Proposing Restrictions to PSLF
Last week, President Trump signed an executive order directing the Department of Education to propose changes to the Public Service Loan Forgiveness (PSLF) program to exclude organizations that “engage in activities that have a substantial illegal purpose,” including organizations that advance illegal immigration or support “terrorism”, “child abuse”, “illegal discrimination”, or “disorderly conduct”. PSLF, signed into law by President Bush in 2007, provides forgiveness for eligible borrowers, including those working at any 501(c)(3) charitable nonprofits regardless of service area, after making 120 eligible payments.
Michigan Nonprofit Association Advice for Nonprofits
Here is a legal brief on what the law says with regards to current threats to nonprofits’ tax status.
This is a good time to assess and prepare as best as possible for what’s next. In addition to participating in advocacy and learning calls with your various coalitions, here are some immediate actions you might consider taking right now, and that you can recommend to community partners:
Scenario plan. Funding is under threat with direct or pass-through federal funding. Model out different scenarios, assessing the risk level to different funding streams, and the implications and options should they cease. Nonprofit Finance Fund offers a free scenario planning tool here that can be helpful; it is part of a series of resources on building resilience during uncertain times. The National Council of Nonprofits also offers a Federal Funding Risk Assessment checklist for nonprofit leaders who currently receive federal funds.
As we saw last week, we may experience fits and starts to funding. Cash flow planning is critical. NFF’s cash flow projection template (also free) is another valuable tool as organizations plan for uncertainty.
Access the many great resources that have been put out there by others supporting the field. Just a couple:
Catchafire nonprofit planning resources
Updates on EOs, Administrative Actions from National Council of Nonprofits
Advocacy tips, tools, and events for nonprofits from Independent Sector
See “Myth vs Reality: Executive Branch Lacks Authority to Target Nonprofit Organizations”