The White House has released its proposed 2019 budget: Efficient, Effective, Accountable: An American Budget. We’re breaking down some keys areas of importance to Michigan philanthropy in the $4.4 trillion budget proposal. Congress is responsible for developing the budget therefore Michigan’s legislators will be deliberating the budget in the coming months. The proposal as it stands now is expected to add $7 trillion to the deficit over the next decade.

Infrastructure

• $1.5 trillion in infrastructure investment. The plan shares that it would use existing funding from programs that would be closed to leverage $200 billion in federal spending and need to generate $1.3 trillion of investment from private firms, state and local government.

• $100 billion to support Incentive Grants aimed at encouraging state, local and private investments in infrastructure.

• $50 billion for the Rural Formula Funds program which would be made available to states through a formula distribution as well as performance-based on the states achieving goals through their rural infrastructure plans.

In Michigan: About 39 percent of our roads are in poor condition and many of our community water systems were built 50 to 100 years ago. Our state’s infrastructure investment gap exceeds $60 billion over the next 20 years.

Food Assistance

• Funding would be reduced by more than 30 percent over a decade for Supplemental Nutrition Assistance Program (SNAP) and reformat the program, adding employment requirements for “able-bodied adults.” NPR reports, instead of the current program where SNAP beneficiaries can utilize money loaded on to their EBT card to purchase items that fall under guidelines, the proposal would “get about half their benefits in the form of a USDA Foods package” which would not include fresh fruits or vegetables.

In Michigan: Nearly one in seven Michigan residents receives SNAP benefits. Through the current system that utilizes EBT cards, families and individuals can participate in Double Up Food Bucks, developed by the Fair Food Network and supported by more than 25 CMF members. The program matches $1 for $1 on SNAP dollars spent on fresh produce at farmers markets, produce stands and grocery stores to ensure Michigan communities have access to healthy food. It’s unclear if proposed changes in the budget could affect how SNAP dollars are spent.

Environmental Protection Agency (EPA)

• A 34 percent decrease in funding for the EPA from the current level.

• A reduction in funding for the Great Lakes Restoration Initiative (GLRI) from $300 million to $30 million.

In Michigan: The EPA calls the GLRI “the largest investment in the Great Lakes in two decades.” The GLRI, which receives bipartisan support in Congress, is aimed at ensuring a healthy future for our lakes and protecting them from pollution, invasive species and other environmental threats. Senator Debbie Stabenow’s office shares that data shows “more than 700,000 Michigan jobs, one in five in the state, are tied to water.”  

Health Care

• Reduce Medicare spending by $554 billion over 10 years. The Pew Charitable Trusts shares that Medicaid is the largest federal grant to states, accounting for 67 percent of total grant funding in 2017.

• The budget calls for repealing and replacing the ACA and reforming Medicaid financing. The budget says President Donald Trump is also in favor of repealing the Medicaid expansion available under the ACA, saying the Medicaid expansion has cost more than expected.

In Michigan: The Healthy Michigan Plan, available through the Medicaid expansion under the ACA, provides more than 677,000 low income residents access to health care. It has added economic activity that generates $150 million in state tax revenue annually. The Center for Healthcare Research and Transformation (CHRT), a nonprofit and nonpartisan impact organization, says this revenue offset nearly all of the state’s share of Medicaid expansion costs in 2017. Read our previous coverage of the Healthy Michigan Plan.

Opioid Epidemic

• $5 billion in new funding for the Department of Health and Human Services (DHHS) over the next 5 years, focused on abuse prevention and connecting people with treatment and recovery services.

• $625 million for states to respond to the crisis

• $100 million in funding for a media campaign and first responder access to overdose reversal drugs

In Michigan: Our state has seen the number of overdose deaths increase more than 17 times. In 2016, 2,335 people died of drug overdoses. That’s more deaths than those which resulted from car crashes. CMF’s Health Funders Affinity Group has shared education around this issue and learning opportunities as we recognize this is a critical issue in our communities. CMF members joined together in a collaborative funding effort which is ongoing to support prevention and support services to Michigan residents.

Census 2020

• $3.8 billion for the U.S. Census Bureau to fund investments in information technology and field infrastructure.

In Michigan: CMF joined with nearly 100 organizations across the U.S. in late 2017 calling on Congress to support the president’s requests for additional funding for Census 2020, to support adequate planning and an accurate and equitable count. Michigan stands to lose an estimated $1,800 of federal funds per year for every person who isn’t counted in Census 2020.  

Here’s a look at a few of the programs facing elimination in the current proposal and the services they provide to Michigan:

• The Corporation for National and Community Service (CNCS)

  • The CNCS invests more than $30 million in Michigan.

  • The mission of the CNCS is to mobilize volunteers, provide disaster services, build economic opportunities, provide leadership and resources to strengthen the charitable sector and more, through its programs such as: AmeriCorps, Senior Corps, the Social Innovation Fund and the Volunteer Generation Fund.

• The Corporation for Public Broadcasting

  • The CPB, which funds NPR, gives community service grants to public television and radio stations that provide significant public service programming, educational, news, etc. to their communities.

• The National Endowment for the Arts (NEA)

  • The NEA is a federal agency, with 40 percent of its funds going to arts agencies in states across the country including the Michigan Council for Arts and Cultural Affairs (MCACA).

  • The NEA provides equitable access to the arts and Michigan nonprofits, local agencies, as arts and culture groups have successfully competed to secure NEA funding for initiatives that benefit Michigan communities.

• The National Endowment for the Humanities (NEH)

  •  The NEH provides grants to cultural institutions, such as museums, libraries, colleges and universities, public television and radio stations to facilitate research and strengthen learning opportunities. The NEH focuses on history, ethics, reflecting diverse heritage, traditions and more.

  • The NEH is the primary funder of the Michigan Humanities Council (MHC), which is vital to providing quality cultural programming to help people build and deepen an understanding of each other, connect people and communities in Michigan.

These are the same programs that were slated for elimination in last year’s budget proposal, but they received bipartisan support in the final version passed by lawmakers.

The 2019 budget proposal is now under consideration by Congress.

Want more?

Check out the budget proposal.