MDHHS Director talks $37 billion 2025 budget

LANSING, Mich. (WZMQ) – Governor Whitmer signed the $82 billion 2025 fiscal year budget into law in Detroit Wednesday morning. Michigan’s Department for Health and Human Services (MDHHS) is set to receive $37.6 billion for the next fiscal year, the largest pool of money to go to any state department. Funds that will go towards public health programs, state hospitals, and local public health departments.

Elizabeth Hertel, the director of MDHHS said $6.7 billion worth of that funding would come from the state’s general fund, but the rest is federal dollars. The biggest portion of which will cover Medicaid-related costs.

“We have a lot of work to do, but we’re really excited about the investments that we’re going to see in the next year,” Hertel said. “What I’m really excited about is investments into our certified community behavioral health clinics, expanding access to behavioral health services further.”

Certified Behavioral Health Clinics are a $161 million line item in next year’s budget. Hertel explained the department is investing around $250 million in total for behavioral health services, which includes both mental health and substance use disorder treatments.

Many communities in the Upper Peninsula see limited access to healthcare programs because of distance or technology. Hertel said bridging those gaps and making sure rural areas see the benefits of the funding is a priority for her department. Highlighting the $4 million set aside for the Great Lakes Recovery Centers for peer recovery support systems.

“We’ve been working to try to make sure that we are decreasing disparities when it comes to health outcomes, and we know that in rural areas we have disparities because of that lack of access. We’re really proud and committed to ensuring that we continue to expand access in places where people haven’t traditionally had access,” Hertel said. “It’s been really important to see that expansion across the state, and I am committed, and the governor is committed, to making sure that we will continue to do that where we’re able and we will continue to strengthen and encourage use of those services.”

The MDHHS budget for 2025 also includes more investments into the state’s ‘Healthy Moms, Healthy Babies’ program, $7 million to continue Michigan’s behavioral health crisis line, a $38 million increase for foster care child health programs, $2 million for updates at the Munising hospital, and $500,000 for a homeless shelter project in Chippewa county.

Hertel said MDHHS is committed to continuing to strengthen and expand those services into the new fiscal year. Now that the budget has been signed by the governor, the new state budget funds will begin October 1.