Some Michigan lawmakers are calling out the new federal budget, called the One Big Beautiful Bill Act, as harmful to working families and the state budget.
About 41% of households in the state, more than 1 million families, live paycheck to paycheck.
Officials warned the bill could strain state services, noting Michigan’s Supplemental Nutrition Assistance Program, or SNAP, has an error rate above 9%.
It could leave the state on the hook for food benefit costs and administrative burdens.
Sen. Sean McCann, D-Kalamazoo, speaking at a virtual news conference with Michigan lawmakers, stressed rural health care could be hit hardest.
"The Hospital Association in Michigan, when they are consistently saying that this bill is going to create a serious health care access problem here in Michigan," McCann noted.
"Especially in rural Michigan where hospitals have up to 40% of their patients be Medicaid patients.
"Supporters argued the law strengthens the economy, pointing to $7,000 to almost $10,000 in projected take-home pay gains for a typical Michigan family and tax relief averaging more than $3,000 per taxpayer in 2026.
They said the benefits will help families cover higher costs and protect jobs statewide.
Rep. Hillary Scholten, D-Mich., pointed out while the bill’s effects on food assistance and health care has been widely discussed, fewer people realize the toll it could take on education.
"The average college graduate in Michigan is going to pay more than $3,000 more than they did previously on their student loans because the Trump administration has rolled back some of the Saved Act incentives," Scholten stressed.
The bill creates a new federal tax credit for donations to private school scholarship funds, which critics said diverts money from public education.
