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

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.

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.

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 Housing Trust Fund.
• $137.6 million for new roads and bridges.

The following appropriations directly benefit our area:

• $500 thousand for Advance Peace, Ingham County’s Community Violence Intervention Program.
• $8.3 million for new psychiatric residential treatment facilities in Lansing, Grand Rapids, and Livonia.
• $4.4 million for the Lansing Community College Energy and Utility Training Center.
• State acquisition of three acres on the Grand River to expand the Lansing River Trail.

Next fiscal year will reflect the full repeal of the retirement tax. (It has been phased in over several years.) Taxpayers will also benefit from the continued increase in the Working Families Tax Credit. Tax exemptions for tips, overtime, and Social Security income continue.

Legislation was enacted last month to ensure young people in the juvenile justice system receive legal representation. Since 2013, the Michigan Indigent Defense Commission has developed and implemented standards for attorneys providing indigent defense service to adults. However, juveniles were not entitled to legal representation in juvenile proceedings. Public Act 70 expands the Michigan Indigent Defense Commission’s duties to include juvenile proceedings. Public Act 71 allows certain anonymous information from juvenile justice cases to be shared for research purposes.

These bills came from recommendations from the Michigan Task Force on Juvenile Justice Reform. Last term, I was the lead sponsor of the Justice for Kids and Communities Package, which was also based on recommendations from this task force (Public Acts 287–305 of 2023). I am glad to continue supporting reforms to improve our state’s juvenile justice system.

Last month, legislation was enacted to create a two-year “cooling off” period before state legislators, the governor, lieutenant governor and state department heads can engage in lobbying after their service has ended (Public Acts 74–76). Without a required break between holding office and lobbying, a “revolving door” is created: former lawmakers are able to go straight from their service in the Capitol to the lucrative lobby corps, where they can advocate for the same special interests that previously had issues pending before the Legislature.

I sponsored similar legislation last term (House Bill 5586 of 2024), and I am glad to support this type of reform again. While there is a lot more work to be done to improve government transparency in Michigan, this is a step in the right direction.

Students and families seeking financial aid for college are invited to register for one of MI Student Aid’s upcoming informational webinars on the Michigan Achievement Scholarship. Topics that will be covered include the Community College Guarantee, the Michigan Achievement Scholarship’s eligibility requirements and award amounts, important action items for students and families, and additional resources and program information. You can view the list of upcoming webinars, register, and watch an online recording of the webinar here.

Follow my official Facebook account for the most up-to-date information. E-news contains a lot of good information, but it takes several days — up to a week — to get approved and sent.

Sincerely,

Kara Hope
State Representative

The Lansing School District is offering free meals for children and students through the “Meet Up and Eat Up” program. Meals will be distributed Monday through Friday at various locations in Lansing. Eligible participants include children 18 years old and under or individuals up to age 26 who are enrolled in an education program for those with a mental or physical disability. More information can be found here.

Michigan’s Senior Project Fresh program offers $25 in free benefits to use on fresh fruits, vegetables, and honey at participating farmers’ markets and roadside stands. Eligible participants must be Michigan residents and either:

• Age 60 or older with a total household income of $28,952.50 or less for an individual, or $39,127.50 for a couple
• Age 55 and older and belong to a Michigan federally recognized tribe or urban tribal group.

The program will be open though Oct. 31. Apply online, or contact the Tri-County Office on Aging at 1-888-224-3030 option 5 to find out more information. Learn more about Senior Project Fresh here.