Debt collection protections, FY 26-27 budget approved, closing the “revolving door,” and more

E-Newsletter | Rep. Kara Hope | Aug. 10, 2026

Dear Neighbor,

Here is some information you will hopefully find helpful, including news and resources from your state government.

Another Attempt to Protect Michigan Families from Debt Collectors and More

I recently re-introduced my legislation to modernize Michigan’s garnishment laws to better protect families’ essential property from debt collectors (House Bill 6230). In addition to protecting certain assets — including the Earned Income Tax Credit — from garnishment, other bills that were reintroduced by my Democratic colleagues require lower healthcare costs for public employees and add corrections officers and other state employees to the Michigan State Police’s pension system.

My original bill passed the House and the Senate back in 2024. It, along with eight other bills, were withheld from the governor until earlier this month, when the courts required their presentation to her. Ultimately, the governor vetoed all nine bills.

Budget Approved for 2026-2027

Last month, the Michigan Legislature approved a state budget for fiscal year 2026-2027. The two omnibus bills making up the budget, Senate Bill 878 and House Bill 5630, were recently signed by the governor.

To me, the headline from this budget should be that the Legislature was able to avoid decimating state services while making up for huge looming federal cuts to Medicaid and SNAP. The federal cuts —- and the resulting costs to Michigan — will haunt the state’s budgets for years to come.

We did our best to protect Medicaid and ensure Michiganders don’t lose healthcare and food while factoring in the additional costs of the federal government’s purported efforts to mitigate fraud. In my reading, the next federal budget calls for a new $184.3 million expenditure to put up obstacles between Medicaid and SNAP benefits and the people who need them. On the more positive side, we invested $185 million to help stabilize Medicaid funding.

We all know that budgets aren’t just spreadsheets. They affect real human beings. And one way or another, the budget reflects our values. Kudos to State Sen. Sarah Anthony, Senate Appropriations Committee chair, for her tireless leadership in creating this people-centered budget.

Some other headlines from the budget that might be of interest:

Funding for free school meals for every Michigan public school student continues.
Per-pupil funding is set at a record-high of $10,300.
Additional funding is directed to K-12 school districts serving economically disadvantaged students and English language learners.
$50 million for the Michigan Housing and Community Development Fund, $29 million of which will fund supportive housing and the Low Income Housing Tax Credit program. $1.5 million was also included for the Ingham County Ho...

Michigan House Democrats

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