Senate Appropriations Committee Examines the Ugly Fiscal Consequences of Trump’s ‘Big Beautiful Bill’
- Detroit Disability Power
- Aug 18
- 4 min read
Sarah Anthony, State Senator | Press Release
LANSING, Mich. (Aug. 13, 2025) — Since taking office in January, President Donald Trump has pursued sweeping cuts and a chaotic economic agenda that have left the nation’s economy reeling. The unemployment rate has increased, job growth is slowing, inflation is soaring, consumer confidence is tanking, and retail sales are weakening. Now, with his misnamed One Big Beautiful Bill (OBBBA) signed into law, states such as Michigan are bracing for ugly economic consequences.
In response, the Michigan Senate Appropriations Committee convened a group of experts today to examine the impact of these federal cuts on Michigan’s state budget and economy. Today’s hearing included testimony from the Michigan Dept. of Health and Human Services, The Corner Health Center, Detroit Disability Power, MI Community Dental Centers, University of Michigan and more.
“President Trump’s so-called Big Beautiful Bill is anything but beautiful if you’re a middle-class family just trying to make ends meet,” said Sen. Sarah Anthony (D-Lansing), Chair of the Senate Appropriations Committee. “This bill is not only cruel — ripping away health care and food assistance from folks who are already struggling — it’s fiscally reckless. It will balloon our national debt, blow a massive hole in our state budget, and jeopardize the long-term health of our economy.”
The Fiscal Impact
The hearing featured presentations from state departments, educational institutions, and advocacy organizations. Their overwhelming consensus: this legislation will have devastating effects on the state’s economic forecast. According to a recent Citizens Research Council report, the OBBBA is projected to blow a $1 billion hole in the Fiscal Year 2026 budget and lead to a steep, immediate decline in revenue upwards of $677 million. Coupled with new barriers to essential programs like Medicaid and SNAP, these cuts will strip Michigan families of vital safety net services and leave lawmakers with fewer tools to help them.
“Over half a million people in our state are projected to lose health coverage, and tens of thousands are at risk of losing SNAP benefits. It’s sometimes said that one loss is a tragedy while one million losses is a statistic, and in this case, it’s crucial to remind ourselves that we’re not just talking about statistics and data. We’re talking about real Michiganders. Real families who won’t have access to what makes them healthy. Real communities that are going to lose hospitals and other medical facilities. Real farmers who are going to lose income because of cuts to SNAP. And real people all over the state who will pay the price of this federal catastrophe,” said Monique Stanton, President & CEO, Michigan League for Public Policy. “We’re grateful to leaders in Michigan who take these cuts seriously and put their constituents first. We urge all lawmakers to do the same and protect Michiganders from harm.”
In past committee meetings, Senate Democrats have highlighted how sweeping Medicaid cuts would strip health coverage from 750,000 Michiganders, threaten thousands of health care jobs across Michigan and deal a projected $2.9 billion blow to the state’s economy. Rural communities would be hit especially hard as 30% of Michigan’s remaining rural hospitals operate with negative margins, and nearly a third of rural hospitals are at risk of closing their doors altogether.
Massive cuts to SNAP are also projected to have negative rippling effects through the state’s economy as well. During the hearing, Dr. Quintin Tyler from Michigan State University Extension shared that their 30-year SNAP-Ed food program is expecting to lose more than $10 million in federal funding, resulting in them having to cut nearly 100 positions, including community nutrition instructors, educators, and other staff throughout the state. As a result, Michigan schools will lose their only health program for students, and their partners will lose access to resources and expertise.
“Losing this program means losing our ability to teach parents how to prepare healthy meals for their children, to help seniors navigate grocery stores with healthy choices in mind, and to support community gardens that increase access to fresh produce,” Dr. Tyler said in testimony before today’s committee. “When you eliminate a program like SNAP-Ed, you just don’t just cut an item in a budget — you erase lifelines at schools, neighborhoods, and communities that already carry the weight of health disparities and economic strain. You also lose a highly trained and deeply embedded professional workforce, people whose roots were firmly planted in Michigan’s counties they served, people who reinvested their salaries into other Michigan businesses, people who help children eat better and families stretch their food dollars further. This program was a legacy that supported schools, strengthened farms, and empowered children and families to become healthier.”
Farmers will also take a hit as a result of SNAP cuts. In addition to the federally funded programs that buy directly from Michigan farms to stock homes, schools, and child care centers, an increasing number of farmers markets accept SNAP dollars, giving the 1.5 million Michiganders who rely on the program easy access to healthy, locally grown produce. Research shows that for every dollar spent in SNAP benefits, approximately $1.50 stays in the local economy, supporting local farmers and other retailers.
“Reducing or eliminating benefits to the elderly, working poor and children served by SNAP will have a domino effect in cutting the sales and tax revenue generated in our stores and force us to make hard business decisions that might further reduce food security for these needy individuals,” said Jerry Griffin, Midwest Independent Retailers Association’s Vice President of Government Affairs.
Next Steps
Anticipating these cuts and as part of broader efforts to address the impact of recent federal actions, Democrats on the Senate Appropriations Committee are utilizing the state budget as tool to stand up for Michiganders across the state. From investments for farmers and small businesses facing tariffs to support for veterans affected by mass federal layoffs, Senate Democrats’ budget proposal for 2026 — passed back in May — seeks to protect Michiganders from the Trump administration’s reckless decisions.
“While President Trump’s actions have made the job of serving Michigan’s people far more challenging — we’re not ones to give up when the going gets tough,” said Sen. Anthony. “We’re re-examining the numbers and adjusting our budget to make sure we’re doing everything in our power to keep hardworking Michiganders from bearing the brunt of these dangerous federal cuts.”
