"The right to criticize government is also an obligation to know what you are talking about."

-Lent Upson, first director of Citizens Research Council

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July 31, 2025

One Big Beautiful Bill Creates One Billion Hit to Upcoming Michigan Budget

The Citizens Research Council released an analysis of the One Big Beautiful Bill Act (OBBBA), the massive federal legislation signed into law earlier this month that affects nearly every aspect of the federal government. The analysis focuses on the likely short- and long-term impacts of OBBBA provisions on Michigan’s budget outlook.

IN A NUTSHELL

 -- The OBBBA increases state cost-sharing within two major safety net programs – Medicaid and the Supplemental Nutrition Assistance Program. The changes could increase Michigan’s spending on these programs by over $1 billion by FY2032.

 -- It also implements more favorable tax treatment of certain business expenditures under the federal corporate income tax – changes that will have ripple effects on Michigan’s corporate income tax collections, leading to large and immediate revenue declines ($677 million revenue reduction estimated for FY2026).

 -- These provisions mean the state will need to cut around $1.1 billion in General Fund/General Purpose appropriations from the FY2026 Executive Budget proposal. By FY2032, OBBBA’s provisions will absorb around 40 percent of expected General Fund revenue growth.

Catch Up On More Recent Reports:

• No Improvement: Michigan Again Ranks 40th in National Road System Condition Assessment
• Fed Changes Could Make it Harder, More Expensive to get Vaccinated in Michigan
• MI Universal Schools Meals May Become More Costly with Medicaid, SNAP in D.C.'s Crosshairs

Rhonda Parker and Guy Gordon

The Citizens Research Council is delighted to announce the arrival of Rhonda Parker as its vice president of development. Rhonda brings more than 15 years of experience in nonprofit fundraising and development, with expertise spanning individual giving, major donor strategy, corporate and foundation partnerships, and institutional grants. Prior to joining the Research Council, Ms. Parker held senior development roles at NephCure, SafeHouse Center, Orchards Children’s Services, and the Detroit Area Agency on Aging. In these roles, she led strategic fundraising initiatives across regional and statewide footprints, developed donor stewardship systems, and secured diverse revenue streams to support programmatic growth. Please join us in welcoming Rhonda to our team!

We are also thrilled to announce a brand new partnership with Emmy award-winning veteran television and broadcast journalist Guy Gordon, who is now the permanent host of our podcast, #FactsMatter.  Gordon brings over 40 years of experience as a reporter, anchor, and talk show host. Gordon was recognized with two Emmy Awards for Best Anchor and six Emmy Awards for Best Writing, Reporting, and Documentary. His work has also garnered numerous awards from the Michigan Association of Broadcasters for breaking news and investigative reporting. Previously, Gordon was a news anchor for Detroit's WDIV Local 4 News for 12 years, following nearly 20 years as anchor for Channel 7 Action News. Most recently, he hosted JR Morning, WJR NewsTalk 760 AM. Welcome, Guy!

During Guy's inaugural #FactsMatter podcast as host, he catches up with the Research Council's Robert (Bob) Schneider, senior research associate for state affairs and author of the paper (see above) examining the massive impact that the federal Big Beautiful Bill will have on Michigan's budget.

Trump tax cut law blows $1.1B ‘hole’ in Michigan budget, new report warns, Detroit News (July 30)

Report: ‘Big, beautiful bill’ will blow $1.1 billion hole in Michigan budget, Bridge Michigan (July 30)

Analysis find state will shoulder $1.1B in spending cuts under One Big Beautiful Bill Act, Michigan Public (July 30)

CRC Report: State Needs To Cut $1.1B from Negotiated Budget for Big Beautiful Bill Hit, MIRS News (July 30)

Citizens Research Council: Trump tax, spending plan will mean $1.1B hit to Michigan budget, Michigan Advance (July 30)

Citizens Research Council projects $1.1B hole in FY2026 budget due to federal tax changes, Gongwer News (July 30)

Trump’s megabill threatens safety net for millions of struggling Michiganders, Metro Times (July 30)

Michigan budget picture clouded by Trump megalaw’s business tax cuts, Crain’s Detroit (July 30)

Citizens Research Council: Trump tax, spending plan will mean $1.1B hit to Michigan budget, News From The States (July 30)

Whitmer’s Michigan: Roads remain ranked 40th nationally for second consecutive year, The Midwesterner (July 29)

Road Woes: Michigan ranks 40th in study of overall road conditions, Fox17 (July 29)

Big expectations, vital priorities await Detroit’s next mayor, Crain’s Detroit (July 28)

Job one for new mayor: Ease the tax burden, Crain’s Detroit (July 28)

Macomb County voters to consider public safety millages, school bonds, New Baltimore mayor, Detroit News (July 27)

Michigan drivers pay top gas taxes but still hit potholes, Capitol Confidential (July 25)

Here’s how Michigan ranks in new roads report, WKAR Public Media (July 24)